Article | REF: AG1317 V1

Strategies of cooperation between firms

Author: Didier LECLERE

Publication date: October 10, 2014, Review date: April 5, 2021

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5. Specific features of management control

The question is whether classic management control tools can be easily transposed to collaborative situations, and with what specific features.

5.1 Trends towards poorer control

To a certain extent, it could be said that collaborative strategies tend to lighten certain control procedures. This is, in fact, one of the objectives: to avoid excessive agency costs, which are a handicap for integrated, hierarchical organizations.

  • Let's take the example of the franchise network. In an integrated company, whose development has been capital-intensive, the sales outlets are branches belonging to the company, and run by salaried managers who may behave opportunistically, and who must be controlled by implementing costly...

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