Management control systems, trust and risk in inter-organisational relationships: The case of Francisco González de la Sierra and its partner Rivas y Cantallops (1847–1864)

Abstract

This article is intended: (1) to provide evidence about the practices in the nineteenth century of inter-organisational relationships when parties accepted sharing performance risks; and (2) to contribute to reducing the gap about the trust–control system dynamic interaction and its effect on risk through empirically analysing a noncontemporary setting. Our study analyses the ongoing relationship of a small commercial company with its main partner during the period 1847–1864, and examines the formal systems used by the company to monitor and coordinate its partner’s activity and the evolution of inter-firm trust throughout the whole life cycle of this relationship.