Evolving Functions of Interorganizational Governance Mechanisms


Correspondence to: Departamento Organización de Empresas, Universidad de Cádiz, Gta. Carlos Cano s/n, 11002 Cádiz Spain. E-mail: josem.sanchez@uca.es


Through a longitudinal case study, this article examines the evolution of the twofold function of formal governance mechanisms, for control and coordination, as an interorganizational relationship evolves. We ask whether all formal governance tools develop simultaneously, or whether each mechanism is designed and used for only one function; whether different mechanisms' attributes foster one function rather than the other; and whether different mechanisms are developed over time in order to provoke both functions' evolution. Finally, we explore whether the interorganizational relationship evolution in part explains the evolution of the two functions, or vice versa. Copyright © 2012 John Wiley & Sons, Ltd.