Management control systems. A non-family stakeholder perspective on the critical success factors influencing continuous stakeholder support during businesses succession

Abstract

Purpose

Although the use of management control systems (MCS) is known to support organizational strategic success, the role played by MCS to monitor stakeholder satisfaction, thus minimizing stakeholder relationship severance, during uncertain events such as business succession remains underexplored. Thus, the authors investigate why succession creates uncertainty and how can stakeholders' concerns assist in contingently adapt the family businesses (FB) MCS to assist decision-making during succession.

Design/methodology/approach

The authors use a qualitative approach and a multiple-case study design. The authors conducted 30 in-depth interviews within 6 Australian FB SMEs. Interviewees included owners, successors, senior managers, customers and suppliers.

Findings

The authors' findings suggest that owners' perceptions, that intergenerational succession causes minimal stakeholder disruption, results in MCS not adapting to monitor the uncertain event. Other stakeholders, on the contrary, highlight the need for MCSs to evolve and adapt during the process to assist owners monitor stakeholder-derived success factors to secure the long-term sustainability of the FB.

Originality/value

The novelty of this research is based on the inclusion of non-family stakeholders, such as customers and suppliers, as part of the sample. This approach allowed for stronger conclusions and a broader overview of the succession issue.

Citation

Rodriguez Serna, L., Bowyer, D.M. and Gregory, S.K. (2023), "Management control systems. A non-family stakeholder perspective on the critical success factors influencing continuous stakeholder support during businesses succession", Journal of Small Business and Enterprise Development, Vol. 30 No. 2, pp. 290-310. https://doi.org/10.1108/JSBED-09-2021-0364