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The purpose of this paper is to explore how ethical leadership and formal control systems influence employee opportunistic behavior.

Using survey data collected from Chinese employees (N=430), the authors conducted regression analysis to test hypothesized relationships between ethical leadership and formal control systems and employee opportunistic behavior. Both direct effects and an interaction effect were tested.

The authors found that both ethical leadership and formal control systems individually play significant roles in reducing employee opportunistic behavior. In addition, the results indicate that ethical leadership and formal control systems function as complements to jointly constrain employee opportunistic behaviors.

This study contributes to an understanding of the relationship between supervisors and followers in China by demonstrating the effects of ethical leadership and formal control systems on employee opportunistic behaviors, including an interesting interaction effect.

When computers were first used in work organizations they were seen principally as devices able to perform simple and limited functions. In consequence they were used to automate routine tasks which had previously been done manually — producing bills, payrolls etc — and they appeared in organizations primarily concerned with large‐scale information processing such as banks, insurance, finance institutions and departments concerned with control. They were also to be found in organizations and departments where large‐scale data processing was a means for achieving desired goals, for example, engineering firms and research and development departments.

Corporate social responsibility (CSR) has become part of daily business for small- and medium-sized enterprises (SMEs) in Japan. The purpose of this study is to explore how management control systems (MCSs) can support the translation of activities into CSR actions using a case study of a SME in Japan.

The case is based on an interview with a CEO of a SME in Japan. The paper contributes to the discussion on CSR and MCSs and investigates the integration of CSR activities in SMEs in Japan through MCSs.

The case company’s formal control systems incorporate environmental and social aspects that are reflected in its top-down, stakeholder-centered approach into CSR through a formal CSR policy. An informal control system is evident and reflected in the CEO’s emphasis on creating shared value by implementing CSR. An interactive control system, a type of formal control system, is useful in the interactions between CEOs and employees and in translating the opinions of stakeholders into CSR actions. Formal control systems can be supported by informal control systems in the implementation of CSR activities.

This research contributes to the management accounting literature by showing that formal and informal control systems can support the motivation of employees and the integration of stakeholders’ opinions on the implementation of SMEs CSR activities in Japan. The MCS approach also contributes to SMEs in Japan that seek to address the demographic and economic challenges.

Mobile loafing, or non-work-related mobile computing, is deviant workplace behavior that can reduce productivity and increase cybersecurity risks. To thwart mobile loafing, organizations often adopt formal controls that encompass rules and policies. These formal controls can serve as a phase-shifting event. Phase shifting is a process where individuals reevaluate and revise their perceptions of the regulation of deviant behaviors. Despite the importance of understanding this process, little research has examined the announcement of formal controls as an impetus for phase shifting. The primary objectives of this study were to induce a phase-shifting perception in an organizational setting and explore its determinants and moderating role in the context of mobile loafing.

The authors proposed and tested a model using two-wave data collected from 231 Amazon Mechanical Turk workers. To test the research hypotheses, they used covariance-based structural equation modeling and logistic regression.

The authors found that peer's mobile loafing and neutralization positively influence mobile-loafing intention before and after the announcement of formal controls. This research also shows that the higher an employee's neutralization, the likelier they perceive the announcement of formal controls as phase shifting. Also, the authors found that the moderating effect of phase-shifting perceptions functions in such a way that the relationship between T1 and T2 mobile-loafing intention is weaker when employees perceive the announcement of formal controls as a phase-shifting event.

The authors’ results provide managers with useful insights into effectively using formal controls to mitigate employees' deviant behavior. To effectively use formal controls, managers should articulate formal controls that can trigger employees to revise their perceptions of counterproductive workplace behavior policies.

This study is one of the first in information systems research to empirically examine the announcement of formal controls as a phase-shifting event and explore its antecedents and moderating role in the context of deviant workplace behavior in general and mobile loafing in particular.

The purpose of this paper is to explore the ways in which both formal and informal control, operating as a package, are implicated in responding to organisational change arising from the introduction of the Australian Federal Government’s Clean Energy Act (2011).

This investigation is based on a review of archival data, and semi-structured interviews conducted with 15 staff at different hierarchical levels within an Australian renewable energy company.

Although formal management control systems and informal control both played important roles in the organisation’s reorientation to organisational change, it was the latter form of control that predominated over the former. The influence of the prevailing organisational culture, however, was pivotal in orchestrating both formal and informal control efforts within this organisation.

This study contributes to management control theory and practice in two ways: first, it provides much needed empirical evidence about the ways in which management controls act as a package; second, it offers insights into the relative importance of the components of a management control package in the context of a particular organisational change. In addition, it responds to Laughlin’s (1991) call for empirical “flesh” to be added to the skeletal framework he advocates to make this conceptualisation of organisational change, “more meaningful”.

The purpose of this paper is to take into account Simons’ (1994) formal levers of control framework and more informal processes to examine how organizations implement and manage corporate social responsibility (CSR) activities through management control systems (MCSs).

A multiple-case study was conducted in ten large French organizations. Qualitative data were collected during in-depth semi-structured interviews with the managers who were best informed on CSR practices and MCSs. The authors then performed within-case and cross-case analysis.

The study shows that organizations use different MCSs to manage CSR activities directed toward their salient stakeholders – that is, employees, customers, suppliers and community. Specifically, the authors found that social MCSs are used to communicate CSR values, manage risk, evaluate CSR activities, and identify opportunities and threats. In addition, the use of MCSs to implement CSR activities is mainly driven by the need to satisfy salient stakeholder demands, manage legitimacy and reputation issues, and meet top management expectations and enhance their commitment. Last, the use of social MCSs is hindered by a lack of clear strategic CSR objectives and action plans, a lack of global standards and measurement processes for CSR, and a lack of time and financial resources.

The study addresses recent calls in the literature for research into the ways formal and informal control systems are used to implement CSR activities and provides insight that may stimulate further research.

This paper seeks to extend the understanding of how formal management control systems (MCSs) contribute to the construction of performance management systems (PMSs) in the French higher education (HE) sector.

Empirical data are gathered both at the global level and at the local (university) level through an in‐depth case study. This allows a dynamic multi‐level analysis based on a neo‐institutional framework.

This article shows how formal MCSs contribute to the institutionalisation of a wider PMS at the global level of the HE sector. The social context then has a determining influence on universities, through the diffusion of values and norms drained by formal MCSs, calling into question the effectiveness of the autonomy supposed to be given to universities under the new PMS. Moreover, within universities, the complex interactions between MCS and PMS resulting from learning, political interactions and conflicts of values, lead to still uncertain outcomes.

The paper focuses on one main case‐study, which is still undergoing change. Analysis could be reinforced by further longitudinal and comparative research.

Steering organisations within a framework where the State defines strategic priorities requires both appropriate performance indicators and a dialogue allowing objectives to be shared at both the social and local levels.

Institutionalisation of MCSs and accountability are discussed in the specific French context of cultural centralisation.

This paper aims to discuss the need for management control system for information security management that encapsulates the technical, formal and informal systems. This motivated the conceptualization of supply chain information security from a management controls perspective. Extant literature on information security mostly focused on technical security and managerial nuances in implementing and enforcing technical security through formal policies and quality standards at an organizational level. However, most of the security mechanisms are difficult to differentiate between businesses, and there is no one common platform to resolve the security issues pertaining to varied organizations in the supply chain.

The paper was conceptualized based on the review of literature pertaining to information security domain.

This study analyzed the need and importance of having a higher level of control above the already existing levels so as to cover the inter-organizational context. Also, it is suggested to have a management controls perspective for an all-encompassing coverage to the information security discipline in organizations that are in the global supply chain.

This paper have conceptualized the organizational and inter-organizational challenges that need to be addressed in the context of information security management. It would be difficult to contain the issues of information security management with the existing three levels of controls; hence, having a higher level of security control, namely, the management control that can act as an umbrella to the existing domains of security controls was suggested.

Purpose – This paper reports on the results of a case study that investigates the operations of formal and informal controls in a multinational-subsidiary in Nigeria.

Design/methodology – Data has been gathered by way of semi-structured interviews, observation, document analyses and a focus group discussion.

Findings – Findings suggest that although issues relating to budgets, performance evaluation and rewards, staff recruitment and other formal aspects of controls were built on the platform of formality, these systems operated alongside informal controls in the organization. We suggest that beliefs systems, values and norms existing within the local community where the subsidiary is located could have a controlling effect and influence the formal organizational controls. Forms of informal controls such as trust were found to be prominent in the organization where superiors in certain instances assigned responsibilities to members of their teams not on the basis of their abilities or skills possessed by the member but because the member could be trusted.

Implications – The findings as reported here have significant implications for understanding the design of management controls in less developed countries (LDCs).

This study aims to understand the formal and informal practices of top managers as they seek to control product innovation processes and how the style of control used differs during development stages and gates.

A qualitative in-depth case study was conducted at a multinational corporation (pseudonym: MEC). The authors examined 12 product innovation projects and carried out semi-structured interviews to understand the experiences, perceptions and challenges of the people involved in product development projects with a focus on the interactions between top managers and the project teams.

The authors found that MEC uses formal control mechanisms such as a stage-gate model and a project management and reporting system to keep track of the progress of innovation projects. In addition, top managers use informal controls through involvement in innovation activities and interaction with the team members during the stages and gates of the development process. To carry out their control practices top managers use four distinct styles of control as follows: participative, facilitative, empowering and authoritative.

Suggestions are provided for managers on how formal and informal management control tools can be used in innovation processes. The authors show how top managers can broaden their range of interventions by involving themselves in product innovation projects in different ways.

This paper shows how the combination of formal and informal controls can generate a more holistic view of management control in innovation. It also adds to previous conceptualizations of control use by suggesting four distinct styles, which top managers can use to involve themselves in product innovation processes.