Theoretical reflections on Interorganizational Trust and Governance Mechanisms of Interorganizational Cost Management

This study aims to verify the theoretical relationships between the control mechanisms of the Interorganizational Cost Management (IOCM) interface area and interorganizational trust, according to the typology of Sako (1992, 1998) based on the Economic Theory of Transaction Costs. To achieve the objective, a theoretical essay was developed, through which the characteristics of the managerial mechanisms and types of trust are presented and discussed, observing the converging aspects. The study shows that the characteristics of trusts based on contracts, competence and goodwill permeate the disciplining, capacitating and encouraging managerial mechanisms, respectively. The research contributes by revealing that the IOCM mechanisms at the interface of interorganizational relationships (IORs) are supported by interorganizational trust, which provides favorable conditions for the application of the GCI. The three types of trust can be graded from weak to strong, depending on the form of competitive advantage sought. For companies, trust can prove relationships as they develop their experiences through IOCM`s management mechanisms, through their own or joint initiatives, to generate total returns for supply chain organizations. For management, trust affects decision-making when reflected in the application of interorganizational attitudes to the development of IORs.