Examining the Link between Outsourcing and Performance : The Leverage Effect of the Interactive Use of Management Accounting and Control Systems

Previous literature reveals contradictory results when evaluating the effect of outsourcing on organizational performance. In attempting to explain this contradiction, the existing research seems to have overlooked potential intermediate variables such as management accounting and control systems (MACS). Because an inadequate control of supplier relationships can impair the performance of outsourcing operations, there is a need to adopt management tools to build and improve these relationships. MACS comprise the various policies and procedures used to ensure that the suppliers' behavior and decisions are consistent with outsourcing objectives. The interactive use of these management tools can help effectively manage the relationship between the outsourcing organization and the outsourcer.Taking a sample of 231 organizations, the results obtained support the research question, suggesting that interactive use of MACS moderates the impact of some outsourced activities on performance