Abstract
Because organizations rely heavily on computer-mediated communication (CMC), it is important to understand the impact of interactions between CMC and the management control system on decision-making behavior and on organizational performance . Management control systems are composed of techniques used by managers to motivate employees to achieve the organization’s strategic goals. Because CMC has been shown to impact behavior, CMC has the potential to either support or subvert the goals of the organization. This chapter shows, through the results of two laboratory experiments, that negotiating behavior using CMC leads to lower profits in a transfer pricing scenario. More importantly, this chapter then demonstrates that if organizations are aware of these consequences and design their management control systems using a fundamental concept from evolutionary psychology theory, they can mitigate some of the negative consequences.
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Acknowledgments
This chapter uses data from experiments used for two articles by the same authors. One appeared in 1993 in volume 3, issue 4 of the journal Accounting Management and Information Technologies. The other appeared in 2008/2009 in volume 49, issue 2 of Journal of Computer Information Systems.
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Greenberg, P.S., Greenberg, R.H., Mahenthiran, S. (2010). The Interaction of Communication Medium and Management Control Systems in the Processes and Outcomes of Transfer Price Negotiations. In: Kock, N. (eds) Evolutionary Psychology and Information Systems Research. Integrated Series in Information Systems, vol 24. Springer, Boston, MA. https://doi.org/10.1007/978-1-4419-6139-6_11
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DOI: https://doi.org/10.1007/978-1-4419-6139-6_11
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