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Book part
Publication date: 3 July 2017

Emer Curtis, Anne M. Lillis and Breda Sweeney

Despite extensive adoption of Simons’ Levers of Control (LoC) framework, there is still considerable diversity in its operationalization which impedes the coherent development of

Abstract

Purpose

Despite extensive adoption of Simons’ Levers of Control (LoC) framework, there is still considerable diversity in its operationalization which impedes the coherent development of the literature and compromises its value to researchers. The purpose of this paper is to draw researchers back to the conceptual core of the framework as a basis for stable, consistent definitions of the domain of observables.

Methodology/approach

We derive the conceptual core of the framework from Simons’ writings. We highlight instability in existing operational definitions of the LoC, weaknesses in the extent to which these definitions reference this conceptual core, and inconsistencies in the restriction of LoC to formal information-based routines.

Findings

We draw on the inconsistencies identified to build the case for commensuration or a “common standard” for the framework’s use on two levels: the constructs within the framework (through reference to the conceptual core of the framework) and the framework itself (through explicit inclusion of informal controls).

Research implications

We illustrate the benefits of commensuration through the potential to guide the scope of the domain of observables in empirical LoC studies, and to study LoC as complementary or competing with other management control theories.

Originality/value

Our approach to resolving tensions arising from inconsistencies in the empirical definitions of LoC differs from others in that we focus on the strategic variables underlying the framework to define the conceptual core. We believe this approach offers greater potential for commensuration at the level of the constructs within the framework and the framework itself.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-78714-530-6

Keywords

Article
Publication date: 5 September 2016

Patricia Martyn, Breda Sweeney and Emer Curtis

Tremendous change has taken place in organisational structures, networks and strategy over the past 25 years. Yet, a strategic management framework developed 25 years ago has…

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Abstract

Purpose

Tremendous change has taken place in organisational structures, networks and strategy over the past 25 years. Yet, a strategic management framework developed 25 years ago has increased in popularity among researchers in the past decade. This paper aims to review how Simons’ Levers of Control (LOC) framework has been used in empirical research studies over the past 25 years.

Design/methodology/approach

The findings are based on electronic database searches of papers adopting Simons’ framework published in accounting and management journals.

Findings

A total of 45 empirical studies adopting the LOC framework are presented chronologically by research method. The review highlights the far greater use of the framework in qualitative compared to quantitative studies. Qualitative studies have extended the application of the framework to broader organisational issues such as sustainability, environmental accounting and inter-organisational controls. The quantitative studies have mainly sought to add to our understanding of the antecedents and outcomes of the use of interactive control systems.

Originality/value

This paper furthers our understanding of Simons’ framework by synthesising and analysing the literature over 25 years. It provides insight into the varying interpretations of the concepts underlying the framework in empirical studies including differences in operationalisation of the concepts in quantitative studies. In addition, it highlights the application of the framework beyond the original domain in which it was developed. Fruitful areas for future research are pointed to in the paper.

Details

Journal of Accounting & Organizational Change, vol. 12 no. 3
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 23 March 2010

Winnie O'Grady, Paul Rouse and Cathy Gunn

The purpose of this paper is to investigate the holistic nature of control systems to understand how they operate across organizational levels and manage change.

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Abstract

Purpose

The purpose of this paper is to investigate the holistic nature of control systems to understand how they operate across organizational levels and manage change.

Design/methodology/approach

This paper takes an analytical approach using the viable system model (VSM) to assess the two main frameworks of control reported in the accounting literature.

Findings

The VSM provides an elegant framework for management control systems with explicit consideration of: multiple levels of control, communication channels, interactions with the environment, and the mechanisms for attaining balance between stability and change.

Practical implications

The evaluation of current management control systems produces specific suggestions for improving the levers of control framework

Originality/value

The VSM has not previously been aligned with management control frameworks.

Details

Measuring Business Excellence, vol. 14 no. 1
Type: Research Article
ISSN: 1368-3047

Keywords

Article
Publication date: 15 June 2012

Zahirul Hoque and Maybelle Chia

The purpose of this article is to explore how the strategic change following a corporate takeover impacted the nature and extent of use of the firm's management control systems…

3108

Abstract

Purpose

The purpose of this article is to explore how the strategic change following a corporate takeover impacted the nature and extent of use of the firm's management control systems (MCS), in particular its performance measurement system (PMS).

Design/methodology/approach

This paper uses Michael Porter's theory of competitive advantage and Robert Simons' levers of control framework to illustrate and interpret changes in the PMS within an Australian multinational subsidiary following its takeover by an overseas corporation. To provide empirical evidence on this issue, face‐to‐face interviews and archival data are used.

Findings

The findings reveal that the takeover resulted in changes in the firm's competitive forces (threat of potential entrants, bargaining power of buyers, threat of substitute products or services, bargaining power of suppliers, and rivalry among existing firms), and therefore the firm altered its strategy to change the rules of competition in its favor. Corresponding to the strategic change, the PMS was affected, with specific implications on Simons' four levers of control: interactive, diagnostic, beliefs, and boundary systems.

Practical implications

The findings suggest that a corporate takeover is an important phase for any organization, as it involves a change in the competitive environment and strategy, and needs to be facilitated by a change in the MCS to create and sustain superior performance.

Originality/value

This case study demonstrates how interactive and beliefs systems work together with diagnostic and boundary systems in the context of change in an organization. Past research devoted to strategic change and MCS has not documented this phenomenon.

Details

Qualitative Research in Accounting & Management, vol. 9 no. 2
Type: Research Article
ISSN: 1176-6093

Keywords

Article
Publication date: 28 August 2021

Rúben Silva Barros and Ana Maria Dias Simões da Costa Ferreira

Building on the growing body of research that has addressed management control systems and innovation, the purpose of this study is to assess the extent and nature of the use of

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Abstract

Purpose

Building on the growing body of research that has addressed management control systems and innovation, the purpose of this study is to assess the extent and nature of the use of controls in an innovative setting and how they work together unveiling the relationships and tensions amongst the Simons’ levers.

Design/methodology/approach

This study resorts to an in-depth and single case study in a company that has both a strong orientation to innovation and stable control practices in place. Evidence was collected from 32 interviews, visits to the company and internal documentation.

Findings

At the case company, it was possible to find the presence of controls according to all the levers of control. Likewise, joint effects of controls used according to interactive and beliefs approaches and diagnostic and boundary controls showed a consistent reinforcement that push the organization in a single direction. Signs of some countervailing reinforcement between these pairs were also detected, creating tensions. This in general shows that innovation can be weighed against the necessity of goal achievement taking place within fields in which the company can exploit the effort developed.

Originality/value

This study documents the collective use of controls in a context in which innovation is needed and how the combination of the levers of control with their inner workings and tensions allow the company to have a corporate environment of innovation that is friendly.

Details

Journal of Accounting & Organizational Change, vol. 18 no. 4
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 16 February 2023

Kevin Baird and Amy Tung

This study focuses on the role of green human resource management (GHRM) practices through providing an empirical insight into the mediating role of the use of environmental…

Abstract

Purpose

This study focuses on the role of green human resource management (GHRM) practices through providing an empirical insight into the mediating role of the use of environmental performance measures (EPMs) in the association between Simons’ (1995) positive levers of control (beliefs and the interactive use of controls) with environmental and organisational performance.

Design/methodology/approach

A survey questionnaire was distributed to 577 chief financial officers within Australian manufacturing organisations who were randomly chosen from the OneSource online database.

Findings

The use of operational EPMs is found to mediate the association between the use of the positive levers of control with two of the four dimensions of environmental performance (resource usage and stakeholder interaction), and non-financial performance (through stakeholder interaction). In addition, the use of management EPMs mediates the association between the use of the positive levers of control with the regulatory compliance dimension of environmental performance. The findings highlight the importance of GHRM practices, in particular, the need for managers to focus on the positive levers of control and using operational EPMs and management EPMs to a greater extent.

Originality/value

The study contributes to the limited empirical research examining GHRM practices, highlighting the importance of EPMs and integrating such measures with internal control mechanisms, specifically beliefs and the interactive use of controls.

Details

International Journal of Manpower, vol. 44 no. 5
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 4 June 2020

Kaveesha Rathnasekara and Tharusha Gooneratne

The purpose of this paper is to identify the complementariness and tensions in the use of management control systems diagnostically and interactively, using a budgetary control

Abstract

Purpose

The purpose of this paper is to identify the complementariness and tensions in the use of management control systems diagnostically and interactively, using a budgetary control example, drawing empirical evidence from a clustered firm, “Pattern On”, which is engaged in the manufacture of apparels.

Design/methodology/approach

This paper uses the qualitative methodology and case study approach. Face-to-face in-depth interviews were carried out as the main source of data collection, supplemented by an analysis of internal documents.

Findings

The field data from this study shows that both diagnostic and interactive controls appear in the clusters of PatternOn. However, the extent of use, the way they are perceived by employees, consequences, complementariness and tensions differ among the clusters. It further suggests that interactive and diagnostic controls have their own positive and negative implications on organisational activities. Therefore, rather than ruling one type as superior; what is best depends on the particular organisational circumstances.

Research limitations/implications

This paper is a useful addition to the current body of management accounting literature, particularly to budgeting and to the levers of the control framework and highlights the use of a domain theory in a research study.

Practical implications

It provides insights to practitioners regarding the simultaneous use of controls, diagnostically and interactively, and how any resulting tensions are managed.

Originality/value

Using a budgetary control example, this paper shows how controls are used diagnostically and interactively while emphasising the complementariness and tensions created by such levers. This is important as most prior research has explored diagnostic and interactive use in isolation, while budgetary control, as well as the role of domain theory has not been their focus.

Details

Measuring Business Excellence, vol. 24 no. 3
Type: Research Article
ISSN: 1368-3047

Keywords

Article
Publication date: 1 January 2005

Norman T. Sheehan, Ganesh Vaidyanathan and Suresh Kalagnanam

Most, if not all, management control tools were formulated for firms employing an industrial value creation logic (i.e., Ford, McDonald’s, and Wal‐Mart). We argue that given the…

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Abstract

Most, if not all, management control tools were formulated for firms employing an industrial value creation logic (i.e., Ford, McDonald’s, and Wal‐Mart). We argue that given the growth, both in number and importance, of firms employing a knowledge value creation logic (i.e., Accenture, Goldman Sachs, and Clifford Chance) and firms employing a network logic (i.e., Verizon, eBay, and Expedia) that these control tools should be revisited in light of this potentially critical contingency. This paper outlines the key characteristics of knowledge intensive firms and network service firms and then examines how these contingencies impact Simons’ (1995) Levers of Control and Kaplan and Norton’s (1996) Balanced Scorecard. We find that whilst each lever/perspective is still relevant for each value creation logic, the relative importance and thus intensity of use should vary between logics.

Details

Qualitative Research in Accounting & Management, vol. 2 no. 1
Type: Research Article
ISSN: 1176-6093

Keywords

Article
Publication date: 7 November 2016

Davar Rezania, Ron Baker and Ruben Burga

This paper aims to examine the levers of control (LOC) framework in the context of managing projects. The authors explore the impact of diagnostic systems, interactive systems…

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Abstract

Purpose

This paper aims to examine the levers of control (LOC) framework in the context of managing projects. The authors explore the impact of diagnostic systems, interactive systems, beliefs systems and boundary systems on project performance and explore the association between control levers.

Design/methodology/approach

Using data gathered from 113 project managers representing 38 organizations, the authors used the partial least squares path modelling algorithm to analyse the data.

Findings

The analysis validates the LOC framework in the context of managing projects and reveals the interrelatedness of control systems and their impact on project performance.

Research limitations/implications

The conclusions support the current emphasis on performance reporting and change control and highlight the need to consider the interdependencies between control levers.

Originality/value

This study re-conceptualizes project control by using the LOC framework in the context of managing projects as temporary organizations. This provides a model for investigating and understanding project management control systems that consider the interaction of control mechanisms. Furthermore, the associations between the four control systems and project performance are examined, rather than individual mechanisms in isolation.

Details

Journal of Accounting & Organizational Change, vol. 12 no. 4
Type: Research Article
ISSN: 1832-5912

Keywords

Content available
Article
Publication date: 2 August 2021

Amr Mohamed Said Abdel-Halim and Mirghani N. Ahmed

This paper aims to evaluate the usefulness of two conceptual frameworks: levers of control (LOC) (Simons, 1995) and performance management systems (PMSs) (Ferreira and Otley…

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Abstract

Purpose

This paper aims to evaluate the usefulness of two conceptual frameworks: levers of control (LOC) (Simons, 1995) and performance management systems (PMSs) (Ferreira and Otley, 2009) for studying PM practices using a case study.

Design/methodology/approach

A case study method is used whereby data are collected through semi-structured interviews, examination of the group’s annual reports and internal documents.

Findings

A key finding of this study is the use of a PMS at the case company which is formally structured and with objectives, mechanisms and processes designed beyond a mere “performance measurement system.” While the case analysis indicates that most of the key components of the two frameworks are featured in the company’s PMS design, the uses of Simons’ (1995) LOC, however, are not consistent with the notion of “balance” as advocated by the model.

Research limitations/implications

The evidence presented in this study is based on one large manufacturing company, and hence the findings cannot be generalized.

Practical implications

The findings of this study can be used in enriching the design of current proposed theoretical frameworks and also in encouraging management accounting researchers to continue the efforts of studying performance management (PM) practices.

Originality/value

A deeper understanding of PM practices using holistic frameworks has yet to receive more contested efforts from management accounting researchers. This paper attempts to contribute to this endeavor and fill in the gap in this area of research.

Details

Journal of Accounting & Organizational Change, vol. 18 no. 3
Type: Research Article
ISSN: 1832-5912

Keywords

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