The interaction between information and trust in the control of transactional relationships: theoretical perspectives and empirical support

This study attempts to explore further the relation between performance information and trust as the main control levers in inter-firm transactional relationships. Design/methodology/approach - After discussing the interaction between information and trust from different theoretical perspectives, the study examines the case of a multinational company working in the pharmaceutical industry. Material has been collected through interviews with managers and documental analyses, focusing on the relations between the company and its partner suppliers. Findings - A theoretical systematisation is provided, distinguishing three main perspectives: (1) the transactional perspective, strictly derived from transaction cost economics assumptions, which denies any role to trust; (2) the relational perspective, which, in examining inter-firm trust, assumes similarities with inter-personal trust; (3) the institutional perspective, which, based on the sociological distinction of ''trust in abstract systems'' and ''trust in persons'', is intended to identify institutional factors explaining management accounting changes. Case discussion shows that the institutional propositions fit the empirical evidence better, for both trust in persons and in systems are important as control levers, but their relevance differs along the value chain: while trust in persons is more relevant in the less-programmable phases, trust in systems is more developed in the more programmable one. Researchimplications - The paper contributes to the literature on inter- organisational control by providing more insights into the interaction between information and trust as control levers. Originality/value - The focus on value chain phases enables us to analyse how different control patterns or archetypes can be co-present in a given relationship