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The role of formal and informal control mechanisms for supplier selection: Experimental evidence.

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Voor_Onderzoeksrapporten2 Faculty of Business and Economics DEPARTMENT OF ACCOUNTANCY, FINANCE AND INSURANCE (AFI) ?????????????????????????????????????????????????????? ????????????????????????????????????????? ?????????????????????????????? ???????? 1 THE ROLE OF FORMAL AND INFORMAL CONTROL MECHANISMS FOR SUPPLIER SELECTION: EXPERIMENTAL EVIDENCE Bart Dierynck1 Katholieke Universiteit Leuven Naamsestraat 69 3000 Leuven – Belgium E-mail : [email protected] Filip Roodhooft Katholieke Universiteit Leuven & Vlerick Leuven Gent Management School Naamsestraat 69 3000 Leuven - Belgium E-mail: [email protected] Working paper June 2010 1 Corresponding author. We gratefully acknowledge the comments on earlier versions of this paper of Henri Dekker, Alexandra Van den Abbeele, Stijn Masschelein, Margareth Christ and Luk Warlop. We also thank participants at the EAA Doctoral Colloquium 2008, the ENROAC Summer School 2008, the New Directions Conference in Management Accounting 2008, the EAA Annual Conference 2009, the AAA Annual Meeting 2009 and the 5th Conference on Performance Measurement and Management Control for their helpful comments and suggestions. Bart Dierynck gratefully acknowledges financial support from the Research Foundation Flanders (FWO). 2 THE ROLE OF FORMAL AND INFORMAL CONTROL MECHANISMS FOR SUPPLIER SELECTION: EXPERIMENTAL EVIDENCE Abstract Previous research in operations has emphasized the importance of internal integration for firm performance. This study shifts the focus to determinants of internal integration and experimentally investigates the role of management control mechanisms for the integration of marketing information about customer preferences in supplier selection decisions. To derive our hypotheses, we draw upon relational framing theory and the distinction

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