Formal and Informal Control as Complements or Substitutes? The Role of the Task Environment
ISSN
2151-6561
Type
conference paper
Date Issued
2014-08-04
Author(s)
Abstract
This study extends both traditional contingency approaches to organizational control as well as the fledgling, and largely conceptual, literature on more holistic control approaches by examining whether and to what extent formal and informal controls interact with each other in their influence on performance outcomes. In particular, we examine whether formal and informal controls act as complements or substitutes for each other, as well as whether such an interaction will be more or less pronounced in the context of higher degrees of exploration. Our empirical findings from an analysis of 184 strategic initiatives conducted by firms across a variety of industries provide support for the benefits of a complementary use of formal and informal controls, but also suggests that the degree of exploration at least partially moderates this effect, and thereby contribute to a more com-prehensive understanding of organizational control.
Language
English
Keywords
informal control
organizational control
exploration
strategic initiatives
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Responsible Corporate Competitiveness (RoCC)
Refereed
Yes
Book title
Academy of Management Annual Meeting Proceedings. 2014
Publisher
Academy of Management
Start page
339
End page
344
Pages
6
Event Title
74th Academy of Management Annual Meeting (AOM) 2014 "The Power of Words"
Event Location
Philadelphia, PA
Event Date
01-05.08.2014
Subject(s)
Division(s)
Eprints ID
231215