Supplier compliance or motivation? A self-determination theory perspective of organizational controls in new product development outsourcing

Organizations use various forms of organizational controls to manage product development (NPD) outsourcing. Controls can either trigger compliance or prompt intrinsic motivation. Building on selfdetermination theory (SDT), this study examines the influence of outcome, behavior, and clan control on supplier mechanical compliance and intrinsic motivation. The results show that outcome control promotes mechanical compliance as it discourages a supplier from utilizing its own idiosyncratic knowledge sometimes, but behavior control does not induce mechanical compliance. Clan control reduces mechanical compliance. The findings also reveal that outcome and behavior control does not undermine the intrinsic motivation, whereas clan control stimulates intrinsic motivation.