Management control systems and performance in strategic supply relationships

This study analyzes the relationship between two elements of the management control systems (MCSs) (performance measurement systems (PMSs) and socialization processes) and four dimensions of the theory of cooperation (information sharing, problem-solving, adaptability to changes and restraint from the use of power) and how this translates into performance in contracts of strategic supply relationships (SSRs).

A survey was carried out to investigate the theoretical model of Mahama (2006) in the empirical field. The population investigated is composed of service stations dealers affiliated with a union of southern Brazil, and the sample consists of 75 questionnaires.

The structural equation show that the two elements of the management control systems (PMS and socialization processes) do not influence performance when their direct effects are evaluated. However, when evaluated together with the cooperation, the results indicate that information sharing and problem-solving reflect into improved performance in contracts of SSRs.

The results are partially similar to Mahama's study (2006). In this study, direct association between socialization processes and cooperation dimensions, related to adaptability to changes and restraints from the use of power, was not identified. Furthermore, the use of PMSs is not associated with the improvement of performance in SSRs.

The distinction of this and Mahama's (2006) study focuses on the types of contracts, to identify whether the dimensions of cooperation imply in the contractual relationship.