Formal and informal control as complement or substitute.

Item Type Journal paper
Abstract

The traditional view of control in organizations largely implies an “either-or” substitution logic, as opposed to the complementarity logic implied in the more recent view of control. This study examines whether formal and informal controls complement or substitute each other in their influence on performance outcomes, and whether such an interaction differs for more or less exploratory tasks. Our findings from an analysis of 184 strategic initiative teams in a cross-industry multicountry sample of firms support the complementary view. More specifically, we find support for our hypotheses that the combined use of formal and informal control has a positive impact on the performance of initiative teams, and that this complementary effect is more pronounced when the degree of exploration is lower. Accordingly, our study contributes to the organizational control literature both theoretically—by providing an explicit theoretical rationale for the complementary view—and empirically—by virtue of providing an empirical test of the interactive effects of formal and informal control.

Authors Kreutzer, Markus; Cardinal, Laura B.; Walter, Jorge & Lechner, Christoph
Journal or Publication Title Strategy Science
Language English
Subjects business studies
Refereed Yes
Date December 2016
Publisher INFORMS
Place of Publication Catonsville, MD
Volume 1
Number 4
Page Range 235-255
Number of Pages 21
ISSN 2333-2050
ISSN-Digital 2333-2077
Depositing User Prof. Dr. Christoph Lechner
Date Deposited 04 Feb 2019 09:28
Last Modified 04 Feb 2019 09:28
URI: https://www.alexandria.unisg.ch/publications/256582

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Citation

Kreutzer, Markus; Cardinal, Laura B.; Walter, Jorge & Lechner, Christoph (2016) Formal and informal control as complement or substitute. Strategy Science, 1 (4). 235-255. ISSN 2333-2050

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https://www.alexandria.unisg.ch/id/eprint/256582
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