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Title: From Market to Clan: How Organizational Control Affects Trust in Defense Acquisition
Authors: Roxanne Zolin
John Dillard
Keywords: Trust
Organizational Control
Transaction-Cost Economics
Issue Date: 1-Jun-2005
Publisher: Acquisition Research Program
Citation: Published--Unlimited Distribution
Series/Report no.: Transaction Cost Economics (TCE)
Abstract: Military acquisition relies upon industry for new product development, but market organizational control is not recommended for knowledge-intensive work. Unfortunately, increasing hierarchy-control mechanisms, such as formalization, could reduce trust. What is the appropriate balance of control mechanisms and trust for an IPT in the DoD acquisition realm? We conducted interviews and surveys in a major military acquisition program office employing IPTs, Alpha Contracting and collocation. We found that the relationship between formalization and trust was different between government and contractor team members. Acquisition managers must understand the relationships between control mechanisms and trust within and between organizations to increase collaboration between government and contract personnel.
Description: Acquisition Management / NPS Faculty Research
Appears in Collections:Sponsored Acquisition Research & Technical Reports

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