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The purpose of this paper is to examine how an enabling management control system (MCS) affected intellectual capital (IC) development in an organisation. The study explores the effect of a change from a coercive to an enabling control system on situated learning and the development of IC.

A case study was conducted in a large manufacturing organisation to explore the effect of a redesigned MCS on IC development. Semi-structured interviews were used to elicit understanding of the effect of the new system on situated learning and valuable local knowledge and relationship development.

The enabling way in which the MCS was designed introduced empowerment and accountability for financial and operational performance at all levels of the organisational hierarchy, which stimulated situated learning in a way that developed the organisation’s IC.

New insight is provided into the way management accounting practice can deliver valuable outcomes to organisations. First, into how MCSs design can stimulate the development of valuable local knowledge and relationships as IC. Second, into how MCS design can affect non-management employees. While prior studies have focussed on managers, this research is novel in showing how enabling controls affect non-management employees.

Within the context of recent post-localism developments in the English local government, this paper aims to show, first, how management controls have become more enabling in response to changes in rules of public sector corporate governance and, secondly, how changes in management control systems gave rise to new corporate governance practices.

Theoretically, the paper mobilises the concept of enabling control to reflect on contemporary changes in public sector corporate governance. It draws on the International Federation of Accountants’ (IFAC) and Chartered Institute of Public Finance and Accountancy’s (CIPFA) new public sector governance and management control system model and data gathered from a longitudinal qualitative field study of a local authority in North East England. The field study used interviews, observation and documentation review.

This paper suggests specific ways in which the decentralisation of policymaking and performance measurement in a local authority (present case) gave rise to enabling corporate governance and how corporate governance and management control practices went some way to aid in the pursuit of the public interest. In particular, it shows that the management control system can be designed at the operational level to be enabling. The significance of global transparency for supporting corporate governance practices around public interest is observed. This paper reaffirms that accountability is but one element of public sector corporate governance. Rather, public sector corporate governance also pursues integrity, openness, defining outcomes, determining interventions, leadership and capacity and risk and performance management.

Insights into uses of such enabling practices in public sector corporate governance are relevant for many countries in which public sector funding has been cut, especially since the 2007/2008 global financial crisis.

This paper introduces the concept of enabling control into the public sector corporate governance and control debate by fleshing out the categories of public sector corporate governance and management control suggested recently by IFAC and CIPFA drawing on observed practices of a local government entity.

The authors study how enabling perceptions (flexibility, reparability and internal and global transparency) of a budgetary control system are formed, and whether enabling perceptions empower lower-level managers and make them form less negative attitudes about red tape in the organization. This study research is warranted because of the lack of knowledge on how perceptual variation in flexibility, repairability and transparency of a control system within an organization, where managers experiencing the same control system design, can be explained.

Survey data with answers from 211 managers from a large local government organization in Sweden is analyzed with structural equation modeling.

The extent to which the budget system is perceived as having enabling qualities (being flexible, reparable and transparent) is explained by the safeness of the individual manager's psychological climate. This climate is characterized by trust and fairness perceptions in upper management. In turn, enabling perceptions positively affect a sense of psychological empowerment and reduces attitudes toward red tape in the organization.

The authors contribute by identifying an important factor explaining individual-level variability in enabling perceptions of control systems within organizations. Compared to previous research that has taken an interest in the organizational-level climate, the authors theorize about and investigate (parts of) the individual-level psychological climate as an explanation of within-system variability.

The purpose of this chapter is to explore aspects of both enabling and coercive control usages and to extend the literature stream by integrating relevant ethical variables at both the level of the individual and the group. We also provide multiple ideas for future research studies.

An overview of prior literature in management control systems is presented with an aim toward identifying gaps in research knowledge.

As a result of our investigation into the intersection between management control and ethics, it is evident that there are many future areas ripe for enquiry.

This study contributes theoretically by conceptualizing the integration of ethical considerations with how control systems are used, and then offering ideas for future research directions.

Our research investigates the intersection between management control and ethics. To the best of our knowledge, we are the first to delve into this critical area.

The paper aims to analyze the influence of the enabling design of management control systems (MCS) on the intensity of use of management controls (budgeting and reengineering and improvement) in innovation (of processes and marketing).

A survey was conducted with mid-level managers of the companies that are considered the most innovative in Brazil. Structural equation modeling was applied to analyze the data.

The enabling MCS design positively and directly influences the intensity of use of management controls (budgeting and reengineering and improvements) and innovation (of processes and marketing). Indirect effects are also observed in the relationship between the enabling MCS design and innovation, through the intensity of use of reengineering and improvements. Environmental uncertainties reflect negatively on the intensity of use of management controls and innovation. These results broaden the discussions on the factors that can affect innovation actions and highlight the importance of considering them in the MCS design.

The value of the study lies in contributing to minimize inconsistencies in research results concerning the effects of MCS on innovation and of factors that may act as intervening factors in such a relationship. It discusses the influence of internal organizational factors, related to MCS design, and of external factors, environmental uncertainties, on the intensity of use of specific management controls and on the promotion of innovations in companies imbued with this mission.

This paper aims to consider the enabling and coercive features of formal control in non-hierarchical settings and the factors influencing perceptions of controls.

This paper is a qualitative case study of a single organization. Data are collected via semi-structured interviews, a range of published materials and a management presentation. Analysis considered the features of coercive and enabling control at the level of individual controls.

In this highly decentralized organization, internal and global transparency predominate and help managers respond to contingencies in flexible ways. Managers cannot repair certain elements of controls to ensure there is stability in an otherwise flexible system. The existence (absence) of enabling features combined with the type of controls (e.g. action or results controls) lacking enabling features influence managers’ perceptions of control.

Few studies have considered formal controls in non-hierarchical organizations. The findings reveal the importance of minimally coercive control features in creating a stable structure for controlling performance. The findings may not be relevant to other hierarchical organizations.

The study is conducted in a highly decentralized context where managers have extensive autonomy (flexibility). The context allows the role of minimally coercive control features to be explored in an essentially enabling organizational setting.

This study aims to synthesize qualitative research in the accounting and management literature that builds on the concept of enabling formalization. The framework for the meta-synthesis integrates formal management control system (MCS) design applying the package typology and two modes of MCS use, namely, diagnostic and interactive.

The meta-synthesis is based on 34 case studies gathered by a systematic literature search. Qualitative research mining software (Leximancer) was used to facilitate an initial analysis, upon which an in-depth manual analysis was conducted.

The findings indicate that the generic features of enabling formalization – specifically, flexibility and repair – help employees better deal with inevitable contingencies in their daily work through continuous self-improvement. In many circumstances, there is a need to change common organizational practices, which sometimes requires realignment to direct employee behavior toward goal congruence. The (temporary) coercion of employees does not seem to cause dysfunctional behavior or resistance as long as the broader MCS package follows the design features of enabling formalization – specifically, transparency. The interactive use of personnel/cultural controls appears to play a crucial role within the whole MCS package in balancing tensions between coercion and enabling formalization.

This study adds to the understanding of formal MCS design characteristics perceived by managers and employees as enabling. Furthermore, it shows how managers of these organizations use formal MCS under enabling formalization.

The authors examined how squad members within an Australian state police force perceived and attached enabling or coercive meanings to a suite of management control system (MCS) changes that were new public management (NPM) inspired.

The authors conducted a longitudinal case study of a large Australian state police department utilizing an abductive research design.

The authors found that identification processes strongly conditioned the reception of the MCS changes introduced. Initially, the authors observed mixed interpretations of controls as both enabling and coercive. Over time, these changes were seen to be coercive because they threatened interpersonal relationships and the importance and efficacy of squads in combating serious and organized crime.

The authors contributed to MCSs literature by revealing the critical role that multifaceted relational and collective identification processes played in shaping interpretations of controls as enabling–coercive. The authors build on this to elaborate on the notion of employees’ centricity in the MCS design.

This study suggests that, in complex organizational settings, the MCS design and change should reckon with pre-existing patterns of employees’ identification.

The authors suggested shifting the starting point for contemplating the MCS change: from looking at how what employees do is controlled to how the change impacts and how employees feel about who they are. When applied to the MCS design, employee centricity highlights the value of collaborative co-design, attentiveness to relational identification between employees, feedback and interaction in place of inferred management expectations and traditional mechanistic approaches.

This paper aims to analyze the effects of enabling management control systems (MCSs) and relational capabilities (interorganizational learning and coordination) on conflict management in innovation ecosystems.

Shedding light on relational governance, structural equation modeling (symmetric analysis) and qualitative comparative fuzzy-set analysis (asymmetric analysis) were applied to a sample of 164 Brazilian firms associated with science and technology parks (STPs), a specific type of innovation ecosystem.

The results of the symmetric analysis showed that enabling MCSs have a direct and positive effect on conflict management, as well indirect effects through interorganizational learning and coordination. The results of the asymmetric analysis indicated four solutions to promote high levels of conflict management, with enabling MCS solutions standing out, as they are present in the majority of cases in the sample.

Interorganizational conflict in innovation ecosystems are inevitable, but the previous literature is inconclusive about how the interrelation between MCS and relational capabilities can foster the management of these conflicts. By providing evidence on the predictors and solutions that lead to high levels of conflict management, this study presents valuable insights into how firms and STPs can mutually promote organizational and relational benefits throughout the innovation activities developed among those involved in innovation ecosystems.

The purpose of this study is to investigate the impact of the enabling performance measurement systems (PMS) on non-managerial employees’ team learning behaviours (TLB) and team effectiveness (TE) when the PMS is used as an enabler.

A questionnaire survey was conducted with non-managerial employees in Japan and a total sample of 474 responses were collected. Partial least squares structural equation modelling using Smart-PLS was used for the analysis.

The results demonstrated that the design feature of global transparency in enabling PMS contributes to the enhancement of TE, with partial mediation through TLB. Furthermore, it was also evident that fostering TLB involves increasing the flexibility in PMS, specifically offering multiple options for collecting and aggregating performance information in various formats.

By examining the effects of the four features of enabling controls on TE and TLB, this study shows which features in an enabling PMS are important in motivating non-managerial employees at the operational level. The study not only fills a gap on the impact of enabling controls on non-managerial employees that has been under-researched but also makes an academic contribution in that it has deepened our understanding of four features that have not yet been fully elucidated.