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Trusting Others When Looking Over One's Shoulder: Accountability Pressures and Governance Choices
, Kannan Srikanth
Published in Academy of Management
Volume: 2019
Issue: 1
Pages: 12099 - 12099

Why do managers deploy different governance modes for similar transactions? We examine this question using qualitative data from public-private collaborations (PPC) in the Indian transport sector. We show that (a) managers subject to within-firm accountability pressures do not invest in relational governance between-firms even though they know it is important for PPC success, and these projects were largely unsuccessful, and (b) managers of more successful projects were able to resist these within-firm accountability pressures and invest in between-firm relational governance. Our contribution is to illustrate a novel mechanism – within-firm accountability pressures – in contrast to prior work that invokes bounded rationality or relational history to explain sub-optimal governance choice between-firms.

About the journal
JournalAcademy of Management Proceedings
PublisherAcademy of Management
Open AccessNo