Control mechanisms and role performance: The moderating effects of social interaction

Abstract

ABSTRACTS In contrast to previous studies, which view output and process control as having only positive or only negative effects, this study investigates nonlinear relationships between output and process control and role performance as well as the moderating effects of social interaction on the above relationships. Results from a sample of 206 Chinese buyer-supplier relationships demonstrate that output and process controls have different curvilinear effects on role performance. Specifically, output control has an inverted U-shaped effect, whereas process control has a U-shaped effect. Social interaction weakens the effect of output control on role performance, but strengthens the effect of process control on role performance. These findings demonstrate previous conflicting arguments on the role of output and process control in coordinating channel relationships and enlarge the understanding on control mechanisms by examining their role in improving role performance, and also provide some practical implications for channel members.