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1 – 10 of over 13000Abdelmoneim Bahyeldin Mohamed Metwally and Ahmed Diab
In developing countries, how risk management technologies influence management accounting and control (MAC) practices is under-researched. By drawing on insights from…
Abstract
Purpose
In developing countries, how risk management technologies influence management accounting and control (MAC) practices is under-researched. By drawing on insights from institutional studies, this study aims to examine the multiple institutional pressures surrounding an entity and influencing its risk-based management control (RBC) system – that is, how RBC appears in an emerging market attributed to institutional multiplicity.
Design/methodology/approach
The authors used qualitative case study research methods to collect empirical evidence from a privately owned Egyptian insurance company.
Findings
The authors observed that in the transformation to risk-based controls, especially in socio-political settings such as Egypt, changes in MAC systems were consistent with the shifts in the institutional context. Along with changes in the institutional environment, the case company sought to configure its MAC system to be more risk-based to achieve its strategic goals effectively and maintain its sustainability.
Originality/value
This research provides a fuller view of risk-based management controls based on the social, professional and political perspectives central to the examined institutional environment. Moreover, unlike early studies that reported resistance to RBC, this case reveals the institutional dynamics contributing to the successful implementation of RBC in an emerging market.
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Seidali Kurtmollaiev and Tor Helge Aas
On the one hand, there is a long tradition of approaching management control and innovation as opposites that prompt organisational tensions. On the other hand, recent studies…
Abstract
On the one hand, there is a long tradition of approaching management control and innovation as opposites that prompt organisational tensions. On the other hand, recent studies have shown that management control may foster innovation and promote innovative behaviour. At the same time, both these perspectives focus on innovation management, and discussions regarding the role of management control in innovation leadership are conspicuously absent from the literature. In this chapter, we analyse how innovation leaders use management control in two service companies. We demonstrate that, in contrast to innovation managers who employ management control systems primarily for planning, monitoring, and evaluation purposes, innovation leaders use management control for advocacy, engagement, and visibility.
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Michelle Carr and Stefan Jooss
COVID-19 has forced Big 4 firms to challenge existing management control arrangements and adapt their ways of working. Yet, we know little about how management control might be…
Abstract
Purpose
COVID-19 has forced Big 4 firms to challenge existing management control arrangements and adapt their ways of working. Yet, we know little about how management control might be enacted in the future of the sustainable workplace. The objective of the study is to examine the patterns of management control change in the Big 4 accounting firms during the COVID-19 pandemic.
Design/methodology/approach
Adopting an exploratory qualitative research design, the authors draw on 42 interviews with directors and associates in the Big 4 professional services firms.
Findings
The findings reveal two pathways of management control change including alignment and displacement. The authors found that relatively minor adaptions to action and result controls were relied upon to respond to substantial cultural and personnel control changes.
Originality/value
The contributions are threefold: the authors take a temporal perspective to (1) unpack the changes to management control arrangements; (2) theorise the findings by developing a three-dimensional taxonomy of change pathways encompassing pace, scope and longevity of management control change and (3) contextualise management control arrangements in a hybrid work setting.
Highlights
COVID-19 has forced Big 4 firms to challenge existing management control arrangements.
Literature has focused on traditional, onsite work settings and largely ignored change pathways.
The authors take a temporal perspective to unpack changes to management control arrangements.
Big 4 firms adapted to hybrid work with substantial changes to personnel and cultural controls.
The authors theorise the findings by developing a three-dimensional taxonomy of change pathways.
COVID-19 has forced Big 4 firms to challenge existing management control arrangements.
Literature has focused on traditional, onsite work settings and largely ignored change pathways.
The authors take a temporal perspective to unpack changes to management control arrangements.
Big 4 firms adapted to hybrid work with substantial changes to personnel and cultural controls.
The authors theorise the findings by developing a three-dimensional taxonomy of change pathways.
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Basil Tucker, Lee D. Parker and Glennda E.M. Scully
The purpose of this inductive, exploratory study is to provide foundational insights into the role of management control in dealing with dysfunctional behaviour within accounting…
Abstract
Purpose
The purpose of this inductive, exploratory study is to provide foundational insights into the role of management control in dealing with dysfunctional behaviour within accounting schools in changing environment of Australian universities.
Design/methodology/approach
Evidence is drawn from semi-structured interviews with 28 current or previous heads of school, research deans, deans of teaching and learning, school managers and human resource managers from 16 Australian universities and interpreted from the theoretical perspective of rational choice theory.
Findings
The findings suggest the incidence of a range of dysfunctional behaviours occurring in accounting schools. Even when such behaviours are limited in frequency, their consequences are nevertheless found to have far-ranging and potentially destructive change impacts for both individuals and the university. Formal management control systems designed to address such behaviours are perceived to be largely ineffective in identifying, managing, eliminating or even mitigating the consequences of such dysfunctionality. Instead, it is informal control processes that are preferred in dealing with dysfunctionality.
Originality/value
This study enhances our understanding of the role of management control in dealing with dysfunctional behaviour within university accounting schools, and points not only to the difference between the design and use of management controls but also to the implications of this disconnect between the underlying intent of control design and their actual use in the context of environments that are subject to significant change.
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Jochen Fähndrich and Burkhard Pedell
This study aims to analyse the influence of digitalisation on the management control function of small and medium-sized enterprises (SMEs). In particular, it aims to illuminate…
Abstract
Purpose
This study aims to analyse the influence of digitalisation on the management control function of small and medium-sized enterprises (SMEs). In particular, it aims to illuminate how digitalisation influences management control elements, organisation and roles/competencies and to identify obstacles to digitalisation of management control in SMEs and measures taken to overcome them.
Design/methodology/approach
The study is based on guideline-supported expert interviews conducted with 14 financial managers from SMEs in Germany, Austria and Switzerland.
Findings
This study reveals the influence of digitalisation on management control elements, organisation, and roles/competencies. The automation and standardisation of management control processes result in new elements for management control, such as strategic support for management. In addition, the increased availability and transparency of data enable the use of instruments within a company that allow for quick analyses of the company's development. Digitalisation leads to the integration of management control into the corporate network and, thus, a change in the organisation of management control. It also triggers the expansion of management control competencies, especially IT competencies. A shortage of internal digitalisation resources, unclear corporate roadmaps, and a lack of managerial experience loom as central challenges for digitalising the management control function. Measures derived from the interviews can help SMEs overcome the obstacles to the digitalisation of management control.
Originality/value
This research is the first interview-based study of the impact of digitalisation on management control in SMEs, potential obstacles to that digitalisation, and measures to overcome those obstacles. Thus, it contributes to the emerging debate on factors that may explain why SMEs lag in terms of the digitalisation of their internal processes.
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Udani Chathurika Edirisinghe, Md Moazzem Hossain and Manzurul Alam
This study aims to explore the managerial conception of the determinants and barriers of sustainability integration into management control systems (MCS) of manufacturing…
Abstract
Purpose
This study aims to explore the managerial conception of the determinants and barriers of sustainability integration into management control systems (MCS) of manufacturing companies in Sri Lanka. Although existing literature has explored the factors that influence the adoption of specific management controls to handle environmental and social issues, the role of management conception has been underrepresented. Specifically, literature is scarce in identifying contextual and organisational factors that influence corporates beyond mere adoption of controls but to integrate with regular controls, especially in developing countries such as Sri Lanka.
Design/methodology/approach
A multiple case study approach has been used to identify the management conception of barriers and enablers for sustainability control integration. The analysis is conducted based on a theoretical framework extending the work of Gond et al. (2012) and George et al. (2016). To obtain an in-depth and multifaceted view, semi-structured interviews were conducted with managers in charge of different functional departments of five manufacturing companies.
Findings
The findings identified managers’ perceived factors, such as environmental impact, stakeholder pressure (customer, competitor and regulatory authorities) and top management commitment, showing a clear difference between strongly and weakly integrated companies. Contrary to the literature, domestic regulatory pressure and multinational ownership do not sufficiently drive MCS sustainability integration.
Practical implications
The findings have implications for managers and practitioners to anticipate the potential barriers and determinants of sustainability integration and provide guidance to take proper measures to deal with them when designing and implementing their MCS.
Originality/value
The study adds value to the literature by presenting a theoretical framework based on the triangulation of different theories to recognise the significance of management idea in sustainable integration. Furthermore, because sustainable integration of MCS is a novel idea, this research is one of the earlier attempts to highlight problems from the perspective of developing countries.
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Xiangfei Zeng, Ting Zhang and Yafei Zu
This paper aims to investigate the law and logic mechanism of management control matching pattern and company strategy aggressiveness under different strategies by textual…
Abstract
Purpose
This paper aims to investigate the law and logic mechanism of management control matching pattern and company strategy aggressiveness under different strategies by textual analysis, based on the empirical data of Chinese A-share listed companies during the period from 2010 to 2018. Additional analyses further investigate the moderating effect of environmental uncertainty and R&D intensity on the relationship between management control matching type and strategy aggressiveness. The conclusion can help relevant departments to develop management control theory and method system with Chinese characteristics and provide theoretical reference for the matching mode of dual control.
Design/methodology/approach
This paper uses the text analysis method. The main explanatory variables are analyzed using the computer SQL Server database software through the relevant text of the board of directors report in the company annual report. Other financial data came from the CSMAR database, excluding ST and PT and companies with missing data, and 16,902 samples were finally obtained. This paper conducted statistical analysis through Stata12.
Findings
This paper shows that the matching pattern between formal and informal control is divided into three types. They have different impacts on strategy aggressiveness. Specifically, consistent matching type II significantly positively influences the aggressiveness of offensive strategy. Consistent matching type I significantly positively influences the aggressiveness of defensive strategy. Complementary matching type I significantly positively influences the aggressiveness of analytical strategy. Additional analyses find that compared with non-high-tech companies, high-tech companies have more significant influence on the relationship between management control matching pattern and company strategic aggressiveness. And compared with other two “strategy-control” matching patterns, both environmental uncertainty and product innovation have more significant influence on the relationship between consistent matching II and offensive strategy aggressiveness.
Originality/value
To the best of the authors’ knowledge, this paper divides the formal and informal control matching patterns of management control into three categories for the first time. It examines the relationship between the formal and informal control matching of management accounting and the degree of strategy aggressiveness. The conclusion provides new empirical evidence to promote the effective implementation of development strategies for companies. It can help relevant departments to develop management control theory and method systems with Chinese characteristics and provide theoretical references for the matching mode of dual control.
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Sanjaya C. Kuruppu, Markus J. Milne and Carol A. Tilt
This study aims to respond to calls for more research to understand how sustainability control systems (SCSs) feature (or do not feature) in short-term operational and long-term…
Abstract
Purpose
This study aims to respond to calls for more research to understand how sustainability control systems (SCSs) feature (or do not feature) in short-term operational and long-term strategic decision-making.
Design/methodology/approach
An in-depth case study of a large multinational organisation undertaking several rounds of sustainability reporting is presented. Data collection was extensive including 26 semi-structured interviews with a range of employees from senior management to facility employees, access to confidential reports and internal documents and attendance of company meetings, including an external stakeholder engagement meeting and the attendance of the company’s annual environmental meeting. A descriptive, analytical and explanatory analysis is performed on the case context (Pfister et al., 2022).
Findings
Simon’s (1995) levers of control framework structures our discussion. The case company has sophisticated and formalised diagnostic controls and strong belief and boundary systems. Conventional management controls and SCSs are used in short-term operational decision-making, although differences between financial imperatives and other aspects such as environmental concerns are difficult to reconcile. SCSs also provided information to justify company actions in short-term decisions that impacted stakeholders. However, SCSs played a very limited role in the long-term strategic decision. Tensions between social, environmental and economic factors are more reconcilable in the long-term strategic decision, where holistic risks and opportunities need to be fully identified. External reporting is seen in a “constraining” light (Tessier and Otley, 2012), and intentionally de-coupled from SCSs.
Originality/value
This paper responds to recent calls for rich, holistic and contextually-grounded perspectives of sustainability processes at an extractives company. The study provides novel insight into how SCSs are used (or not used) in short-term or long-term decision-making and external reporting. The paper illustrates how a large company is responding to sustainability pressures within the unique contextual setting of New Zealand. The study outlines the imitations of existing practice and provides implications for how sustainability-based internal controls can be better embedded into organisations.
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Basil P. Tucker and Elaine Nash
The paper presents the initial groundwork for the development of a research agenda around the management control implications of employing workers with intellectual disability.
Abstract
Purpose
The paper presents the initial groundwork for the development of a research agenda around the management control implications of employing workers with intellectual disability.
Design/methodology/approach
The point of departure of this foundational enquiry is primarily prior analyses and critiques of empirical research into the employment of workers with intellectual disabilities.
Findings
The authors extend the management control framework advanced by Tessier and Otley (2012) by offering insights relating to the benefits and costs of both compliance as well as performance roles of management control systems (MCS). As such, the authors advocate potential avenues for further empirical investigation and also offer four broad ways in which the use of MCS is implicated in the employment of individuals with an intellectual disability by recognising that achieving compliance outcomes or achieving performance outcomes both carry associated benefits and costs.
Research limitations/implications
The extent to which management control research has engaged with the context of workers with intellectual disability is limited. However, this paper identifies some of the salient considerations underlying an agenda for further research in this area.
Social implications
The employment of workers with intellectual disabilities is by no means unprecedented. In many Western economies, there have in recent times been significant disability policy shifts, recognising the key role of employment in the financial security and social participation of people with disabilities, including those with intellectual disabilities. A key performance indicator stated in these policy positions is an increase in workforce participation for this group of people. However, an increase in the employment of such individuals is likely to represent significant implications in terms of prevailing conditions as well as new management control configurations that may be required.
Originality/value
The paper overviews existing knowledge about the employment of workers living with an intellectual disability and identifies areas relating to the management control implications of such arrangements within which more research is required.
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Ane Haugdal, Frode Kjærland, Levi Gårseth-Nesbakk and Are Oust
This study explores whether hard regulatory control decreases the level of earnings management in local governments. The implementation of a new regulatory approach by Norwegian…
Abstract
Purpose
This study explores whether hard regulatory control decreases the level of earnings management in local governments. The implementation of a new regulatory approach by Norwegian authorities provides the opportunity for an empirical study.
Design/methodology/approach
The authors adopt a two-stage strategy to investigate the existence of earnings management, using the Jones (1991) and modified Jones (Dechow et al., 1995) models to construct a random-effects model.
Findings
The authors test the hypothesis that, given decentralisation of control, there will be an increase in opportunistic financial reporting. This study's findings suggest that this is not the case, thereby indicating that a soft control regime does not diminish discipline in municipalities.
Practical implications
This study has practical implications for policymaking in the public sector. Its findings suggest that municipalities do not engage in more earnings management under a soft regulatory regime. Hence, other authorities should consider adopting a soft regulatory approach to controlling local governments and their financial reporting systems.
Originality/value
This study contributes to a growing body of literature regarding earnings management by local governments. The authors investigate a hypothesis previously untested in the literature by comparing the degree of earnings management under different regulatory control regimes.
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