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Management control system effectiveness: The association between types of controls with employee organizational commitment across organisational life cycle stages

Sophia Su (Department of Accounting and Corporate Governance, Macquarie University, Sydney, Australia)
Kevin Baird (Department of Accounting and Corporate Governance, Macquarie University, Sydney, Australia)
Herbert Schoch (Department of Accounting and Corporate Governance, Macquarie University, Sydney, Australia)

Pacific Accounting Review

ISSN: 0114-0582

Article publication date: 2 February 2015

Abstract

Purpose

This study aims to examine the association between the use of three types of controls (input, behaviour and output) with the level of employee organisational commitment (EOC) across organisational life cycle (OLC) stages.

Design/methodology/approach

Data were collected by a survey questionnaire from a random sample of 343 general managers in Australian manufacturing business units.

Findings

The level of EOC was found to be highest in growth and revival stage units, suggesting that EOC relates to the level of innovation. The analysis revealed that the types of controls were significantly associated with the level of EOC. In particular, a significant positive association was found between input controls and the level of EOC in both the birth and revival stages.

Originality/value

This study contributes to both the management control system (MCS) literature and practice. First, because only a limited number of studies have examined the effect of MCSs on the level of EOC, and there is no published study to date which has examined the association between the types of controls with the level of EOC from an OLC perspective, this study fills a gap in the literature by examining these associations. Secondly, the findings have important implications for Australian manufacturing organisations. Specifically, by providing an insight into the association between the types of controls with the level of EOC across OLC stages, the results suggest that managers of organisations in the birth and revival stage need to place greater emphasis on input controls so as to enhance the level of EOC.

Keywords

Citation

Su, S., Baird, K. and Schoch, H. (2015), "Management control system effectiveness: The association between types of controls with employee organizational commitment across organisational life cycle stages", Pacific Accounting Review, Vol. 27 No. 1, pp. 28-50. https://doi.org/10.1108/PAR-06-2012-0022

Publisher

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Emerald Group Publishing Limited

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