Controlled Collaboration in Organizations: The Role of Knowledge Management, Performance and Trust

While the agency theory posits that the principal tries to gain maximum profits with the least costs and the agent acts in the interest of the principal only with control mechanisms, the stewardship theory argues that the agent is motivated to act in the interests of the principal therefore coordination mechanisms should be developed. While the absence of organizational control may lead to diversion from organizational goals, too much control may harm employees' autonomy, creativity, and innovation. On the other hand, when organizations over emphasize collaboration, a relational risk may occur in work processes. So the coexistence of control and collaboration creates a dilemma for organizations. In this study we argue how knowledge management, performance management and trust may contribute to the unity of control and collaboration in organizations and accordingly develop theoretical propositions.