Specific features of management control
Strategies of cooperation between firms

To a certain extent, it could be said that collaborative strategies tend to lighten certain control procedures. This is, in fact, one of the objectives: to avoid excessive agency costs, which are a handicap for integrated, hierarchical organizations.

• Let's take the example of the franchise network. In an integrated company, whose development has been capital-intensive, the sales outlets are branches belonging to the company, and run by salaried managers who may behave opportunistically, and who must be controlled by implementing costly mechanisms:

  • cost...