By entering into transactions with independent firms, companies
seek to combine the benefits of specialization with the benefits of
supervising and coordinating internally organised transactions. In
distribution channels, such exchanges may exacerbate a
manufacturer's risks and vulnerability; thus, control systems may
play a crucial role in these relationships. A new challenge has
surfaced in tackling questions such as the objectives companies
pursue when implementing control systems in their distribution
channels; the mechanisms used and the role they play; and the
implementation process and effects they have on relationships. The
objective of this book is to endeavour to combine an analysis of
control systems and current business practices by analysing the
role and effects control systems have on distribution channels. To
this end, a field study structured in two investigations that aim
to complement other empirical studies was conducted. The first is a
case study that analyses control systems' roles. The second uses
the same methodology to study the complementary/substitutive effect
control systems have on mutual trust from the twofold
manufacturer/distributor perspectives.
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