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Accounting, Organizations and Society Vol. 77 2019

Managing systemic uncertainty: The role of industry-level management controls and hybrids

Paul J. Thambar1; David A. Brown2; Prabhu Sivabalan2

1 Caulfield Hospital · 2 University of Technology Sydney

open access

Abstract

We study how multiple firms voluntarily design inter-firm mechanisms to manage industry-level systemic uncertainty. Facing a threat of systemic uncertainty that cannot be addressed by any one firm, we explain how the Australian cotton industry mobilised hybrids and boundary spanners to develop an industry-level solution at the inter-firm level. We apply resource dependence theory to extend Miller, Kurunmaki and O'Leary (2008), and identify a broader range of hybrid characteristics (novel, inter-firm, public/private and open source) than currently acknowledged in accounting studies. We use these characteristics to explain how hybrid organisational forms and hybrid control processes operate at the inter-firm level to develop and share a solution to systemic uncertainty, which are subsequently applied at the firm-level. Our findings also show how boundary spanners can operate with less tension in larger industry-level collaborations, explained using our resource dependence conceptualisation. This responds to Dekker's (2016) calls for more inter-firm research clarifying how controls operate beyond the firm.

DOI
10.1016/j.aos.2019.03.002
Volume
77
Pages
101049
Language
en
Sources
semanticscholar openalex crossref

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