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The purpose of this paper is to analyse the extent to which the perceived usefulness of financial information for internal decision making is affected by the internal control to which that information is subjected.

The research is positivist and quantitative, based on a cross-sectional analysis developed in the local government context. Data were collected from a survey to decision makers (politicians and chief officials) in charge of the financial area in all Portuguese municipalities. The response rate was approximately 49 per cent, assuring representativeness.

Regarding the perceived usefulness of financial and budgetary reporting for internal decision making, the results in the paper show that municipalities’ internal users’ attitudes towards using accrual-based financial reporting for decision making is changing. Additionally, internal decision makers consider financial and budgetary information as very useful for decision making, and the different types of internal control applicable to that information as very important. The results also clearly point to the existence of a significant and positive relationship between the internal control (including internal auditing) to which financial and budgetary information is subject, and its perceived usefulness for municipal decision making.

The main limitations of this study are related to the way in which information was collected in order to obtain empirical evidence. The questionnaire, sent by e-mail, despite reaching a wide-range and dispersed population, cannot guarantee the truthfulness and integrity of the responses. Findings might have been affected by the fact that respondents may have been sympathetic to the reforms brought by the Official Local Government Accounting Plan (POCAL). Certainly, politicians linked to the political party that promoted those reforms would be predisposed in this way. Another limitation might concern the fact that new laws and regulations passed after POCAL, might have somehow affected the answers regarding the perceived usefulness of budgetary and financial information for internal decision making, as well as the importance of the internal control to which that information is subject.

The results of this study have important repercussions for the implementation of internal control systems at local government level. Particularly, they highlight the need to develop or improve internal control procedures to ensure budgetary and financial information reliability, which in turn determines its usefulness for decision-making purposes.

This research makes a contribution to the (scarce) literature on the relationship between internal control and the perceived usefulness of financial and budgetary information for decision making, particularly in the local government setting. It adds with further empirical evidence concerning the relationship between these two issues, helping to reinforce previous embryonic research in this field. As to policy making, this research also contributes by calling attention for the need to define the types of internal control financial information must be subject, a critical issue while assuring the usefulness of that information for decision making. This is particular important in current contexts of countries moving towards IPSAS-based financial reporting systems.

The article aims to analyse the perception of the internal users regarding the usefulness of the municipal financial reporting in the context of decision making in the Portuguese local administration.

This research is quantitative and positive, based on a cross‐section analysis through the online application of a questionnaire to the decision makers (politicians and technicians) of the 308 Portuguese municipalities. The approach is based on the paradigm of information usefulness.

The results indicate a high usefulness for the decision making of the municipal financial reporting, in its current form and content. However, this usefulness would increase if information, other than what is mandatory, were introduced. In general, the two different groups of decision makers, politicians and technicians, behave somewhat differently, regarding the usefulness that the financial reporting holds for them. The technical decision makers consider it of greater value. There is no statistical evidence that shows that there is a link between the training area and professional experience of the internal decision makers and the usefulness of the municipal financial reporting. Both types of users show a preference for the information set within the budgetary accounts, although accrual‐based information also proves to be of excellent value.

The main limitations of this study are related to the way information was collected (questionnaire) to obtain empirical evidence. The questionnaire, sent by email, despite reaching a wide‐ranging and dispersed population, does not assess the truthfulness and integrity of the responses. Furthermore, it does not make it possible to really identify the usefulness of the municipal financial reporting. The use of perceptive measures can also represent a threat to the study's internal validity.

The results of this study have important repercussions on the internal decision makers concerning the usefulness of the municipal financial reporting. Particularly, since the general approach towards the usefulness of the reporting could become a solid work basis for the regulatory bodies to enhance the current reporting model in the light of its suitability within the internal decision making.

Research on this study is original as it provides, as far as the authors are aware, the first empirical evidence of the perceptions of internal users on the usefulness of the municipal financial reporting in Portugal, in regard to decision making.

This paper seeks to establish the influence of several types of factors on the use of accounting information in the public sector within a developing country context. Institutional theory with its branches NIS and OIE underlies the theoretical framework for explaining the factors influencing the use of accounting information. The analysis was based on structural equation modelling to test nine hypotheses. The data were collected by administering 208 questionnaires to the Tanzanian Local Government Authorities’ political and administrative actors.

At large, the findings of this study comprehend the role of institutionalised social and legal rule with professionalism in shaping actors to use accounting information instrumentally and symbolically in budget decision-making processes. Furthermore, the findings establish the importance of education and experiences on accounting and financial aspects of the actors who are involved in the public sector budget decision-making process. The findings also provide an understanding of the differences between political actors and administrative actors in terms of the factors influencing the symbolic use of accounting information in LGA’s decision-making processes.

Our findings challenge development partners (i.e. donors), reformers such as Central Government and National Accounting professional board such NBAA in Tanzania to coerce pressure by adoption of implementation of NPM techniques, which can lead to positive change in LGAs to influence instrumental rather than symbolic use of accounting information in the budgetary decision-making processes. For example, adoption of accrual basis accounting should also concur with the improvement of accounting information systems, legal and regulatory frameworks together with creation of trainings that increase skill and knowledge of using accounting information by the actors. This might ensure financial sustainability to LGAs that can increase provision of service with relevant quality to citizens. Moreover, the findings need the political parties to take responsibility of building capacity of their candidates. It might ensure that their representatives in the council are capable of making appropriate use of the accounting information at their disposal to improve the quality of budget decision making and their representation of the population for the benefit of their organisation and eventually of their political parties. The citizens are needed to be sources of professional behaviours to both councillors and administrators by making closer follow up and demands of quality services from their LGAs through budgeting processes.

The generalisation of this study’s findings can be limited because they were obtained only from LGAs operating in Tanzania

This is the first paper that establishes the factors influencing the instrumental–conceptual use and the symbolic use of accounting information in LGAs’ budgetary decision-making processes in developing country context, in particular, in Tanzania.

The accelerating past globalisation had pressurised various types of enterprises, including state-owned enterprises (SOEs), to adopt appropriate decision-making approaches for their internationalisation strategies. The present book chapter illustrates the role that an entrepreneurial approach played in the decision-making process about the international expansion of an incumbent and large, SOE after its initial internationalisation. The case of a formerly state-owned telecommunication enterprise from Scandinavia will be explored that highlights aspects of entrepreneurial decision-making, internal organisational changes, and the influence of individual managers within the executive management team which influenced the process of internal decision-making. The empirical chapter makes important contributions to notably the practice of entrepreneurial decision-making for internationalisation; it unveils the complexities of internal decision-making processes, including the struggles between individual managers, and thereby provides a better understanding for management practitioners about decision-making for competitiveness and growth during the internationalisation of large, yet inexperienced enterprises.

The purpose of this paper is to understand, which internal processes (mental, emotional, cultural, ethical and spiritual) Afghan business leaders use when making managerial decisions.

Primary data were collected through 1-h face-to-face interviews with Afghan business leaders. Interviews were conducted through open-ended questions in a semi-structured format. This method was considered most appropriate to acquire an understanding of senior executives’ interpretation and usage of decision-making processes. The method of analyzing data was thematic analysis where the researchers identified common themes, topics, ideas and patterns of meaning that come up repetitively. The objective of the analysis was to determine the most frequent decision-making processes by business leaders and the reasons for using these processes.

Although the usage of internal processes in decision-making are not homogeneous among Afghan business leaders, some of the processes are used more frequently than others such as mental, cultural and ethical processes. During the mental process of decision-making, the majority of leaders use intuitional decision-making, the minority using logic. Regarding the cultural dimension, the majority of leaders stated that they have an open, friendly, caring organization for each employee and horizontal culture in their organization. The minority indicated that they have a friendly culture but they also considered the processes and hierarchy in their organization. Considering the ethical process of decision-making, leaders stated that their priorities are more ethical than getting extra profit. They believe that profit will be generated while considering ethical values. As a leader noted: when you consider ethics and fulfill your obligations, the profit automatically generates. Most leaders use the internal process of emotion in their decision-making, but the usage has not been frequent. The emotional process of decision-making is more involved when the human factor is involved. For instance, one of the participants stated “I did not fire an employee that I had to because he was a needy and poor person.” About the spiritual process of decision-making, although all leaders agreed that they have used spirituality in decision-making, its usage varies. About one-third of the leaders mostly rely on spirituality or on religious teachings during the decision-making process, one-third somehow rely on spirituality or religion, about 50% of the time and one-third rely on spirituality between 25% to 30% of the time.

This study is pilot research as no previous research was carried out on this topic, therefore, it provides a basis of literature on the usage of internal processes on decision-making in Afghanistan. The findings may differ in other economic and national contexts.

Managing a complex, boundary‐spanning function to maximize its contribution to the firm can be a challenging task. This research is concerned with providing management with increased understanding of the effects of different ways of managing a function, especially a significant boundary‐spanning operation. Conducted in the context of a procurement function, through a laboratory experiment, explores the impact of performance measures, interaction with other internal organizations and access to information about external events on an individual′s decision making and “comfort level”. Results indicate that the performance measurement system determines an individual′s decision‐making performance. The broader, more effectiveness‐oriented measures also tend to make the individuals more confident and satisfied with their operating environment and decisions. The availability of interaction with other internal organizations and the access to information about external events impact on an individual′s decisions but have relatively little effect on his/her comfort level.

Decision-makers must be well-informed to successfully impact the future of the business. The purpose of this study was to explore experiences of US fashion retail executives when making business decisions to understand what resources and strategies are utilized within the decision-making process. Additionally, the role of academic research within executive decision-making process was explored.

This study utilized a phenomenological approach to understand the experiences of fashion retail executives when engaging in business decision-making. Fifteen US fashion retail executives participated in the study. Data were collected through in-depth individual interviews and thematically coded to gain a holistic perspective of the decision-making process within the fashion retail industry.

As the result of the data analysis and interpretation, three topical areas emerged:: “Incredible Amounts of Information,” “Industry Specific Academic Research” and “Have a Clear Road Map.” The findings suggested that while the facts gleaned from internal and external data are of great importance to fashion professionals, insights gathered from social media are equally influential within the decision-making process. The authors identified five major strategies utilized consistently by fashion retail executives regardless of the type of business they represented: collaboration, adaptability, speed, gut instinct and creativity.

The results are important to fashion retail companies for improving internal decision-making processes. The identified resources and strategies of the decision-making process can be incorporated into fashion program curricula and considered as learning outcomes when preparing future industry professionals.

Limited studies have explored the decision-making process specific to the fashion retail environment, an uncertain and ever-changing industry. Further, the study shed light on the opportunity for academic research use in fashion retail decision-making and contributes to the literature by developing a fashion retail decision-making model.

The purpose of this paper is to explore the ethical decision making of internal auditors and the impact of corporate governance mechanisms thereon. It also aims to explore whether ethical decision making is influenced by years of experience in internal auditing.

A total of 66 internal auditors were presented with five ethical dilemmas. For each scenario, a key element of corporate governance was manipulated to assess its impact on ethical decision making. These were audit committee support; management integrity regarding accounting policies; management integrity regarding pressure on internal audit; external auditor characteristics; and organisational code of conduct.

Participants were generally sensitive to ethical dilemmas but were not always confident that their peers would act ethically. A higher quality external audit function was positively associated with internal auditors' ethical decision making. However, the strength of other governance mechanisms did not appear to influence ethical decision making. Finally, more experienced internal auditors adopted a more ethical stance in some cases.

The sample was self‐selected and may not be representative of internal auditors in general. The lack of significant results may be due to insufficient variability in the manipulations and/or an oversimplification of reality in our scenarios.

The study has implications for the internal audit profession with respect to training and the provision of support mechanisms to strengthen the ability of internal auditors to withstand pressure when dealing with ethical dilemmas.

This paper is the first to study whether the strength of other governance mechanisms influences internal auditors' ethical decision making.

The purpose of this paper is to develop propositions explaining the influence of individual goals and social preferences on human decision making in transport planning. The aim is to understand which individual goals and social preferences planners pursue and how these influence planners’ decisions.

Propositions are developed based on investigation of decision making of transport planners in a Dutch logistics service provider using multiple data collection methods.

The study shows how decision making of transport planners is motivated by individual goals as well as social preferences for reciprocity and group identity.

Further research including transaction data analysis is needed to triangulate findings and to strengthen conclusions. Propositions are developed to be tested in future research.

Results suggest that efforts to guide planners in their decision making should go beyond traditional (monetary) incentives and consider their individual goals and social preferences. Moreover, this study provides insight into why transport planners deviate from desired behaviour.

While individual decision making plays an essential role in operational planning, the factors influencing how individuals make operational planning decisions are not fully understood.

While previous health-care-related hybridity research has focused on macro- and micro-level investigations, this paper aims to study hybridization at the organizational level, with a specific focus on decision-making. The authors investigate how new politico-economic expectations toward a university hospital as a hybrid organization become internalized via organizational decision-making, resulting in the establishment of a new business collaboration and innovation-oriented unit.

The authors employed a social systems theoretical framework to explore organizational decision-making processes involved in the establishment of the new hybrid hospital unit. Drawing on 15 interviews and nine organizational documents, the authors describe and analyze three decision-making cycles using the concepts of complexity, decision and justification.

The findings reveal the challenging nature of decision-making during hybridization, as decisions regarding unprecedented organizational structures and activities cannot be justified by traditional decision premises. The authors show that decision-makers use a combination of novel justification strategies, namely, justification by problems, by examples and by obligations, to legitimize decisions oriented at non-traditional activities. Further, the analysis reveals how expectations of several societal systems, i.e. health care, education, science, law, economy and politics, are considered in decision-making taking place in hybrid organizations.

The study draws attention to the complexity of decision-making in a hybrid context and highlights the role of justification strategies in partially reducing complexity by concealing the paradoxical nature of decision-making and ensuring the credibility of resulting decisions. Also, the study presents a move beyond the dualism inherent in many previous hybridity studies by illustrating the involvement of several societal systems in hybridization.