Concordia University, Canada

Management control systems and trust: a view in the context of international cooperation projects

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Abstract

As part of a bigger research project on third sector and grassroots organizations, this exploratory study examines the relationship between trust and management control systems in the setting of international cooperation projects. Using a framework presented by Langfield-Smith and Smith (2003) as well as a qualitative approach based on interviews, this paper shows that the usual funding model used in international cooperation follows a bureaucratic based pattern of control. This has certain implications for the type of controls implemented (behavioral and outcome) as well as the role of trust (contractual and competence based) perceived in this sector. In so doing, the paper addresses the concerns about the applicability of models conceived for-profit seeking initiatives, into the non-for profit sector. In addition, the document suggests new theorization leads regarding the complex interplay between trust and control, and proposes that the relation between these two concepts is characterized by a contingent balance rather than a perfect, commensurate trade-off.

Biography

Nelson Duenas is accountant graduated from National University of Colombia, with four years of experience in audit, accounting procedures and financial reporting and analysis. A former lecturer of Corporate Finance and Managerial Accounting courses in top Colombian universities, he earned his MBA degree at Concordia University. He is also a UNCTAD consultant for the implementation of the Accounting Development Tool in Colombia. Currently, he is Ph.D Student in Business Administration- Specialization in Accounting at Concordia University. His research interests are in the areas of management control systems, international cooperation and development, third sector accountability and accounting infrastructure development.