Inter-relationships And Integration Of Inter-organizational Management Control And Internal Control

Since the pace of integration of Chinese companies into economic globalization is accelerating,companies are faced with more and more complex inter-organizational cooperative relationships.This requires companies to use effective inter-organizational management control("MC")to manage such relationships.The inter-organizational MC,as an extension of the internal control,is inextricably linked with internal control.The first main issue to be solved in this paper is,how inter-organizational MC and internal control affect each other and what their roles are.The second main issue is that,after clarifying the inter-relationships of inter-organizational MC and internal control,the necessity and feasibility for integration between them and the way to integrate them in order to enable enterprises to use inter-organizational MC methods more effectively.Inter-organizational MC is the intermediate bridge between enterprise collaboration and value creation.Inter-organizational control requires the use of internal control.Inter-organizational MC also imposes higher requirements on internal control.Therefore,the integration of the two can better improve the efficiency and effectiveness of enterprises' management.This paper takes the five elements of inter-organizational MC as the main line,explores the inter-relationships between inter-organizational MC and internal control,and finally conducted integration based on the five elements starts with the objectives setting,specify responsibility,action plan and implementation,internal reporting,evaluation and incentives.This article has four contributions:First,on the basis of a review of the literature,it points out the inter-relationships between inter-organizational MC and internal control;second,it clarifies the necessity and feasibility of integrated governance between inter-organizational MC and internal control.According to the five elements of inter-organizational coordinated MC,an in-depth study of the integration of internal control and inter-organizational MC has been conducted,laying the foundation for subsequent case analysis;Thirdly,it analyzes the inter-organizational coodiantion and internal control of the case companies,analyzes the mutual influence between the two in the actual situation,and proposes the problems and suggestions for the integration of the two,and combines the actual situation of the company and the inter-organizational MC and made re-integration.Fourth,the integration method of the inter-organizational MC and internal control is able to be applied to manufacturing companies and other industries.