Packages of management control systems, entrepreneurial orientation and performance in Brazilian startups
Journal of Accounting & Organizational Change
ISSN: 1832-5912
Article publication date: 11 October 2021
Issue publication date: 4 October 2022
Abstract
Purpose
This study aims to understand the relationship between the elements of a startup firms’ management control system (MCS) package, its entrepreneurial orientation (EO) and firm performance.
Design/methodology/approach
The authors collected survey data from a sample of 100 Brazilian startups who had exited technology-based parks and incubators. The authors used two data analysis techniques, namely, partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA).
Findings
The findings show that cultural and planning controls were the only two MCS elements that were included in all high-performing startup firms’ MCS packages. The authors also found that EO has a positive influence on firm performance through the MCS package.
Research limitations/implications
The mixed-method approach allowed for a holistic view of the analyzed phenomenon. PLS-SEM analysis was applied to the symmetric relationships between the proposed relationships while fsQCA was used to analyze the asymmetric combinations between EO dimensions and MCS package elements, which promoted high firm performance.
Practical implications
The authors show how different combinations of MCS elements form a package, mediating EO, which can enable high performance.
Originality/value
Using fsQCA and PLS-SEM, the authors were able to better understand the important role that MCS package adoption has on a startups’ performance and provide new evidence regarding the interface between MCS and EO. This extends the understanding of the importance that cultural and planning controls have in an MCS package to support startup performance.
Keywords
Acknowledgements
The authors would like to thank the editor and the two anonymous reviewers for their helpful comments and suggestions. This study was financed in part by the Research Support Foundation of the State of Rio Grande do Sul (FAPERGS), Brazil.
Citation
Frare, A.B., Cruz, A.P.C.d., Lavarda, C.E.F. and Akroyd, C. (2022), "Packages of management control systems, entrepreneurial orientation and performance in Brazilian startups", Journal of Accounting & Organizational Change, Vol. 18 No. 5, pp. 643-665. https://doi.org/10.1108/JAOC-04-2021-0052
Publisher
:Emerald Publishing Limited
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