The main focus of contractual governance is to follow the formal rules, which emphasizes the importance of the formal rules of agreement and contracts while having a transaction between two parties during any project . The second mechanism of governance is relational governance which is informal type of governance having a focus on relationships among the parties involved in a transaction. Two separate streams of research have been emerged during the last few decades which is to exercise the control systems to improve the performance of IT projects. Formal control consists of mechanisms which can influence the behavior of a controlee through performance evaluation . Formal control includes behavior control and outcome control. Behavior control helps to measure the task performance of a controlee according to their adherence to performance standards. While in the outcome control, controller set the targets for the controlee and defines how to achieve those targets. I feel all these terms are interconnected with each other and need to study them together. Need your expert opinion.
I think governance is a much broader concept than control. Either contractual or relational governance involves many parties who may or may not enjoy equal status in a transaction. They can also be one-way or two-way relationships. But, formal control is a management techonology that is imposed by the manager on the workers. It is largely a one-way relationship that applies to a much narrower circumstance. Given their different scopes, I think it is not meaningful to ask if governance and formal control are substitutes or complements.
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