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Enterprise resource planning (ERP) systems are limited due to their operation around a fixed design production process and a fixed lead time to production plan and purchasing plan. The purpose of this paper is to define the concept of informality and to describe the notion of a system combining informality and ERP systems, based on empirical research from four manufacturing case studies.

The case studies present a range of applications of ERP and are analysed in terms of the three characteristics of informality, namely, organisation structure, communication method and leadership approach.

The findings suggest that systems consisting of informality in combination with ERP systems can elicit knowledge from frontline workers leading to timely improvements in the system. This is achieved by allowing users to modify work procedures or production orders, and to support collaborative working among all employees. However it was found that informality is not required for manufacturers with a relatively stable environment who can deal with uncertainty with a proactive strategy.

This study was carried out in China, with four companies as unit of analysis. Future work can help to extend this study across countries.

The use of Four dimensions of informality that relate to manufacturers implementing ERP are defined as “technology in practice”, “user flexibility”, “trusted human networks” and “positive reaction to uncertainty”. This is a new construct not applied before to ERP implementations.

The implementation of performance management is the responsibility of managers; more importantly, a key part of a frontline manager's role is ensuring that frontline employees are performing by meeting organisational goals. Existing research has shown a lack of focus on the role of frontline managers in the implementation of performance management systems despite plenty of research on the separate topics of frontline managers and performance management. This article aims to understand how frontline managers connect the intended performance management system, through components and processes developed by the human resources department and higher levels of management, with their employees' performance.

This study used a qualitative method, conducting semi-structured interviews with 57 participants from two Singapore public sector organisations to understand the interaction between the formal and informal performance management systems.

The authors found that frontline managers used the formal and informal performance management systems in the organisation to manage the demands of their role. Notably, the expectations that superiors and subordinates have heavily influences how the frontline managers choose to implement their performance management responsibilities.

The article uses systems theory to illustrate and explain the complex and dynamic nature of PM in practice through the FLM's implementation of the formal and informal PM systems. The primary contribution of the study is through demonstrating under what situations do frontline managers use the formal and informal performance systems in a complementary manner within the constraints placed on them.

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.

This paper aims to mainly investigate the role of trust, which is an important informal system, in executive compensation incentives.

Using the data of Chinese A-share private enterprises from 2003 to 2014, the paper estimates the effect that trust has on executive compensation incentives.

Results indicate that trust can significantly enhance the effectiveness of executive compensation incentives. Furthermore, the better the regional trust environment in which companies are located, the more pronounced the effect is. In particular, the effect of trust on executive compensation incentives is only significant when the formal legal system is immature. As companies continue to grow and develop and the formal system becomes perfect, the role of trust weakens. The formal system, including the corporate governance mechanism and perfect legislation, then becomes the key to promoting executive compensation incentives.

This paper provides evidence of the significance of both informal and formal systems. It not only emphasises the important role that the informal system has played in “the mystery of China’s economic growth” but also supports the “ruling the country by law” strategy for the sustainable development of China’s economy.

This paper reveals the relationship between the formal and informal systems, which provides a new perspective on and empirical evidence for the determinants of executive compensation incentives, and it also finds an explanation for the rapid growth of China’s economic development.

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”.

Football tailgating is a focus of campus sustainability in the United States because it produces large amounts of waste. In states where recyclables can be redeemed for cash, this waste also is a resource for earning income. University officials face the challenge of encouraging proper waste disposal, cleaning up efficiently and coexisting productively with income-earning recyclers. This paper aims to understand how bridging formal and informal actors can yield improved campus waste management outcomes.

Using the institutional analysis and development framework this study combines observational data throughout one football season with semi-structured interviews with informal recyclers, tailgaters and campus officials. Data are analyzed using thematic analysis.

The case displays interaction between formal and informal waste management actors and between formal and informal rules of interaction. Campus officials have largely succeeded in encouraging proper waste management by tailgaters, who in turn loosely coordinate with income-earning recyclers under unwritten rules. Officials tolerate recyclers, but waste management could be improved with better communication and coordination and more trust between them. Many recyclers conduct their work with a sense of environmental stewardship that could support waste management efforts.

Uncoordinated coexistence between formal and informal waste management systems is common in the global South. With few studies in the global North, this is the first the authors know of in a campus sustainability context.

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.

The purpose of this paper is to provide an empirical analysis of factors that affect support networks among retirees in 13 countries.

It examines two propositions drawing from support network theory and the classification of countries by welfare systems. It uses fixed‐effect causal models to examine how retirement and socio‐demographic variables influence kinship and friendship support networks. Data are drawn from the Social Relations and Support Systems module of the International Social Survey Programme 2001.

The results show that retirees' friendship‐based support networks are almost one‐third smaller than those of working persons. Furthermore, this difference is greater in welfare systems that spend more on social well‐being.

However, the relationship between informal support networks and welfare systems is complex, which indicates a need to further the debate on the co‐existence of formal and informal aid systems.

This study's main sociological confirmation is that the relationship between the size of support networks and the type of welfare system is irregular and complex. The results make a significant contribution to the debate on the relationship between formal and informal care among a group of people during a critical life‐cycle phase, such as retirement.

This study aims to discuss the consequences of trade-based money laundering (TBML) and informal remittance services on the sustainability of the position of balance of payments and net foreign assets of a small open economy.

This paper uses a case study design using facts related to TBML and informal remittance services on the balance of payment and net foreign assets of Sri Lanka.

The contextual analysis reveals that the growth of the informal economy promotes informal remittance services in Sri Lanka. The policy decision to peg local currency to US dollars as a result of a shortage of foreign exchange had forced people to use informal channels for different purposes. The unclear and vague customer due diligence process of the anti-money laundering and countering the financing of terrorism (AML/CFT) regime also has forced people to use informal remittance services. Criminals especially drug traffickers have grabbed the promoted informal remittance services to transfer proceeds from Sri Lanka to overseas drug suppliers. On the other hand, systematic deficiencies in monitoring and regulation of movement of fund transfers and merchandise across borders provide opportunities for criminals to use different TBML techniques to transfer funds. These limitations force policymakers and regulators to think of developing a comprehensive payment ecosystem to prevent money laundering and terrorist financing. Therefore, the global initiative is required to move towards a payment ecosystem from a recommendation-based AML/CFT regime to reduce global crimes.

This study was designed to discuss the implications of TBML and informal remittance services on the balance of payments and net foreign assets in a small open economy. The structure and size of the economy, the strength of the overall economy and the AML/CFT regime will play an important role in controlling criminal activities and combating money laundering of an economy; hence, the impact of TBML and informal remittance services will vary accordingly across the countries

This paper is an original work done by the authors, which discusses the implications of TBML and informal remittance services on the balance of payments and net foreign assets of an emerging market context.

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.