TY - JOUR
T1 - How multi-sourcing can influence management control
T2 - case study evidence from the electronic products supply chain
AU - O'Connor, Neale G.
AU - Schloetzer, Jason D.
AU - Romero, Jorge
AU - Wu, Anne
N1 - Publisher Copyright:
© 2022 British Accounting Association
PY - 2022/9
Y1 - 2022/9
N2 - This study investigates how multi-sourcing can influence the use of management controls in the presence of varying buyer-supplier power dependencies. Multi-sourcing is an interorganizational design choice that can help buyers collect valuable information to facilitate cost and performance comparisons across multiple sources of supply. We leverage prior research to develop a conceptual framework that highlights how multi-sourcing can enable buyers to use cost management and performance management controls differently depending on the nature of buyer-supplier power dependencies. We then use case studies of three electronic product manufacturers to illustrate the framework, yielding empirically testable propositions regarding when multi-sourcing may enable cost management controls, performance management controls, and both types of control. The evidence demonstrates the importance of simultaneously considering multiple interorganizational design choices when studying management controls in supply chains. We also highlight how multi-sourcing may help supply chains promote non-financial goals, including those related to environmental and social activities.
AB - This study investigates how multi-sourcing can influence the use of management controls in the presence of varying buyer-supplier power dependencies. Multi-sourcing is an interorganizational design choice that can help buyers collect valuable information to facilitate cost and performance comparisons across multiple sources of supply. We leverage prior research to develop a conceptual framework that highlights how multi-sourcing can enable buyers to use cost management and performance management controls differently depending on the nature of buyer-supplier power dependencies. We then use case studies of three electronic product manufacturers to illustrate the framework, yielding empirically testable propositions regarding when multi-sourcing may enable cost management controls, performance management controls, and both types of control. The evidence demonstrates the importance of simultaneously considering multiple interorganizational design choices when studying management controls in supply chains. We also highlight how multi-sourcing may help supply chains promote non-financial goals, including those related to environmental and social activities.
KW - Competitive priorities
KW - Cost management
KW - Information technology industry
KW - Interfirm relationships
KW - Management controls
KW - Performance management
UR - http://www.scopus.com/inward/record.url?scp=85138024672&partnerID=8YFLogxK
U2 - 10.1016/j.bar.2022.101128
DO - 10.1016/j.bar.2022.101128
M3 - Article
AN - SCOPUS:85138024672
SN - 0890-8389
VL - 54
JO - The British Accounting Review
JF - The British Accounting Review
IS - 5
M1 - 101128
ER -