From market to clan: how organizational control affects trust in defense acquisition

Abstract

Military acquisition relies upon industry for new product development, but market organizational control is not recommended for knowledge-intensive work. Unfortunately, increasing hierarchy-control mechanisms, such as formalization, could reduce trust. What is the appropriate balance of control mechanisms and trust for an IPT in the DoD acquisition realm? We conducted interview and surveys in a major military acquisition program office employing IPTs, Alpha Contracting and collocation. We found that the relationship between formalization and trust was different between government and contractor team members. Acquisition managers must understand the relationships between control mechanisms and trust within and between organizations to increase collaboration between government and contract personnel.;The following article is taken as an excerpt from the proceedings of the annual Acquisition Research Program. This annual event showcases the research projects funded through the Acquisition Research Program at the Graduate School of Business and Public Policy at the Naval Postgraduate School. Featuring keynote speakers, plenary panels, multiple panel sessions, a student research poster show and social events, the Annual Acquisition Research Symposium offers a candid environment where high-ranking Department of Defense (DoD) officials, industry officials, accomplished faculty and military students are encouraged to collaborate on finding applicable solutions to the challenges facing acquisition policies and processes within the DoD today. By jointly and publicly questioning the norms of industry and academia, the resulting research benefits from myriad perspectives and collaborations which can identify better solutions and practices in acquisition, contract, financial, logistics and program management.