Linking formal controls to motor carrier performance: Curvilinear and interaction effects

摘要

We examine the relationships between formal management controls (FMCs)-activity controls and output controls-and motor carriers' operational and market performance. Using nonlinear structural equation modeling, we identify curvilinear and interaction effects of FMCs on carrier performance. We contribute to theory by providing evidence that the relationships between FMCs and performance are more complex than previously theorized. Namely, excessive activity control will adversely affect market performance, especially when output control is low. However, when output control is high, increasing activity control improves market performance-up to a point. Accordingly, we provide managerial guidance on appropriate levels of FMC use.