Search results

1 – 10 of over 1000
Click here to view access options
Article
Publication date: 11 October 2021

Anderson Betti Frare, Ana Paula Capuano da Cruz, Carlos Eduardo Facin Lavarda and Chris Akroyd

This study aims to understand the relationship between the elements of a startup firms’ management control system (MCS) package, its entrepreneurial orientation (EO) and…

Abstract

Purpose

This study aims to understand the relationship between the elements of a startup firms’ management control system (MCS) package, its entrepreneurial orientation (EO) and firm performance.

Design/methodology/approach

The authors collected survey data from a sample of 100 Brazilian startups who had exited technology-based parks and incubators. The authors used two data analysis techniques, namely, partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA).

Findings

The findings show that cultural and planning controls were the only two MCS elements that were included in all high-performing startup firms’ MCS packages. The authors also found that EO has a positive influence on firm performance through the MCS package.

Research limitations/implications

The mixed-method approach allowed for a holistic view of the analyzed phenomenon. PLS-SEM analysis was applied to the symmetric relationships between the proposed relationships while fsQCA was used to analyze the asymmetric combinations between EO dimensions and MCS package elements, which promoted high firm performance.

Practical implications

The authors show how different combinations of MCS elements form a package, mediating EO, which can enable high performance.

Originality/value

Using fsQCA and PLS-SEM, the authors were able to better understand the important role that MCS package adoption has on a startups’ performance and provide new evidence regarding the interface between MCS and EO. This extends the understanding of the importance that cultural and planning controls have in an MCS package to support startup performance.

Details

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

Keywords

Click here to view access options
Book part
Publication date: 3 July 2017

Kenneth A. Merchant and Lourdes Ferreira White

This paper examines the linkages between the ethics and management control literatures and suggests some potentially fruitful areas for future research and for integration…

Abstract

Purpose

This paper examines the linkages between the ethics and management control literatures and suggests some potentially fruitful areas for future research and for integration in the classroom.

Methodology/approach

We review topics in the ethics and management control literatures organizing them around the six modules used in the accounting ethics course taught at the University of Southern California: (a) professional standards, (b) distinguishing right from wrong, (c) understanding why (good) people do bad things, (d) getting employees to behave ethically (corporate ethics programs), (e) getting people to speak up when they see something wrong taking place (Giving Voice to Values), and (f) whistleblowing (the last resort).

Findings

While we find many topics where ethics and management control are concerned with similar issues, there are very few papers that approach these topics from the two perspectives.

Originality/value

We provide an overview of topics where ethics and management control overlap, and highlight the need for greater convergence between the two literatures. By linking MCS and ethics, organizations can provide a framework to promote behavior that both contributes to the achievement of the organization’s objectives and also follows ethical principles. We comment on what may happen when ethics and management control diverge, and discuss controls that can promote a strong ethical climate.

Open Access
Article
Publication date: 23 July 2021

Tapio Jukka

This study examines the relationship between business strategy, management control system (MCS) type and performance. Does the alignment of organisation business strategy…

Downloads
1102

Abstract

Purpose

This study examines the relationship between business strategy, management control system (MCS) type and performance. Does the alignment of organisation business strategy and MCS fresult in better performance?

Design/methodology/approach

This study draws on the business strategy and MCS type literature to identify business strategies and MCS types. A scoring method was used to identify business strategy types and cluster analysis to identify MCS types from a sample of 80 firms and 621 firm-years of data. Analysis of variance was used analyse the differences.

Findings

Four types of MCS were identified and were labelled clan, adhocracy, market and hierarchy. The sample was split into defender, analyser, prospector and reactor strategies. The results showed defender strategies performed better with hierarchy or market type MCSs while prospector strategies performed better with clan or adhocracy MCS types. Analysers performed acceptably with all MCS types.

Practical implications

The results of this study suggest that organisations should align their business strategy with a certain MCS type to achieve good performance. Also, alignment of top management and business strategy is supported as the top management properties differ between the MCS types.

Originality/value

This research contributes to the management control and strategy literature by demonstrating how the alignment between organisation business strategy and organisation-level MCS type determines organisational performance. The results suggest that differing business strategies yield better performance when aligned with the appropriate management controls represented by an MCS type.

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

Keywords

Click here to view access options
Book part
Publication date: 8 April 2010

Androniki Triantafylli and Apostolos Ballas

This study explores whether the implementation of Management Control Systems (MCS) by the Greek shipping companies influences the adoption of their performance measurement…

Abstract

This study explores whether the implementation of Management Control Systems (MCS) by the Greek shipping companies influences the adoption of their performance measurement systems and the implication of this choice on organizational performance. The study uses data collected from semi-structured interviews and a survey instrument addressed to shipping companies located in Greece. The paper finds evidence that MCS are defined in terms of the informational purposes these MCS fulfill. Analysis of responses to the questionnaire results that the choice of MCS is contingent upon the strategy pursued by the shipping companies. In addition, evidence suggests that shipping companies with an optimal fit between their strategy and their MCS experience superior performance and higher perceived usefulness of MCS. Moreover, it is concluded that Greek shipping companies adopt subjective performance measures irrespective of the MCS they implement and that this choice leads to enhanced perceived performance.

Details

Performance Measurement and Management Control: Innovative Concepts and Practices
Type: Book
ISBN: 978-1-84950-725-7

Click here to view access options
Article
Publication date: 16 August 2021

Edward Nartey, Francis Kweku Aboagye-Otchere and Samuel Nana Yaw Simpson

The purpose of this paper is to first, determine the implications of management control system (MCS) information characteristics for controlling the COVID-19 pandemic…

Abstract

Purpose

The purpose of this paper is to first, determine the implications of management control system (MCS) information characteristics for controlling the COVID-19 pandemic through four performance indicators (quality, speed of delivery, availability and cost-effectiveness) of the public health supply chain and second, the mediating effect of four dimensions (broad scope, timeliness, integration and aggregation) of the MCS on external integration, internal integration, customer integration and operational performance of public health institutions in Ghana.

Design/methodology/approach

Using covariance-based structural equations modelling and based on contingency theory, a hypothesized model was developed and tested. The sample involves a survey of 214 public health institutions in Ghana.

Findings

Both external and internal integration were found to have a significant positive effect on MCS information and, in turn, on the supply chain operational performance of public health institutions. Also, customer integration has a significant positive impact on the four dimensions with a corresponding impact on supply chain operational performance.

Practical implications

The paper provides practitioners and policymakers with the usefulness of the contingency paradigm in enhancing the supply chain network of public health institutions during epidemics, hence, the need to adopt and develop the contingency approach in designing MCS within the public health sector. Effective public health management through a collaborative process between stakeholders (suppliers, customers and personnel) will mitigate stockouts of medical supplies and systematic disruptions in the public health supply chain.

Originality/value

The MCSs – supply chain integration interaction on organizational performance is one of the areas that has received very little attention in the literature particularly in service-oriented organizations. In this regard, this paper represents one of the few studies in Africa that examines performance implications of MCS – supply chain nexus with respect to public health emergencies service-orientec organizations. The paper contributes to the literature by providing invaluable insights into the usefulness of the MCS in enhancing the supply chain performance of public health emergencies.

Click here to view access options
Article
Publication date: 12 July 2021

Ilse Maria Beuren, Vanderlei dos Santos and Daniele Cristina Bernd

This study aims to empirically examine the effects of using the management control system (MCS) on individual performance mediated by organizational learning…

Abstract

Purpose

This study aims to empirically examine the effects of using the management control system (MCS) on individual performance mediated by organizational learning. Complementarily, it evaluates the moderating effect of feedforward on the relationship between MCS use and organizational learning.

Design/methodology/approach

Structural equation modeling and mediation and moderation analyses were used in a sample of 194 managers from Brazilian companies listed in the Exame Magazine’s “Best and Biggest” ranking.

Findings

The results reveal that using the MCS from a cybernetic perspective contributes to organizational learning, contradicting theoretical arguments and empirical evidence that this hinders learning and that feedforward can strengthen this relationship, as long as it is in line with the way of using the MCS. A mediating effect of organizational learning on the relationship between MCS use and individual performance has also been confirmed.

Practical implications

The results demonstrate the effects of MCS use on individual performance and organizational learning by taking a taxonomy of cybernetic use and comprehensive MCS use as a basis. The results provide insights to managers by revealing that MCS use not only influences task performance through organizational learning but also tends to generate cooperative, persistent and initiative-taking behaviors.

Originality/value

The study provides an approach to the behavioral consequences of using the MCS (score-keeping use and comprehensive MCS use) and the role of specific cognitive and motivational mechanisms in individual performance from a multidimensional perspective (task-based, contextual and general).

Details

Journal of Knowledge Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1367-3270

Keywords

Click here to view access options
Book part
Publication date: 17 February 2011

Suresh Cuganesan and Jerome Donovan

A number of studies across a variety of disciplines call for further research investigating the factors that influence performance measurement (PM) systems and practices…

Abstract

A number of studies across a variety of disciplines call for further research investigating the factors that influence performance measurement (PM) systems and practices. Despite management control systems (MCS) comprising performance measurement as one of its elements, the influence of MCS on PM systems and practices has received little attention. This study attempts to address this need by examining the associations between MCS and PM practices through a survey of large Australian organisations, with MCS characterised in terms of Simons’ (1991; 1995) levers of control (LOC) framework and the objects-of-control (OOC) framework (Emmanuel et al., 1990; Merchant and Van der Stede, 2007). We find that MCS approaches and the specific LOC and OOC that these comprise influence both the purpose for which PM systems are used and the selection of KPIs, but has little influence on the use of benchmarking. Also, diagnostic MCS are associated with the design of causally structured PM systems while results-focused MCS are linked with an absence of structure. Adding to the findings are evidence that interactive LOC are not associated with strategic learning, validation and the use of causality in PM systems.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-0-85724-817-6

Keywords

Click here to view access options
Book part
Publication date: 4 October 2018

Lucrezia Songini, Chiara Morelli and Paola Vola

Notwithstanding the relevance of managerial control systems (MCS) in any organization, as well the distinctive role they can play in family business, due to its specific…

Abstract

Notwithstanding the relevance of managerial control systems (MCS) in any organization, as well the distinctive role they can play in family business, due to its specific features, the literature rarely dealt with the role and characteristics of MCS in family business. Taking into account previous contributions from different disciplines (organization, management accounting, and family business), the current work aims to better understand the state of the art about research in the field of MCS in family business in order to identify main research gaps and propose future research directions.

Forty-five articles have been analyzed, which were issued in 29 sources. Research findings show that the literature on MCS in family business is limited and not very conclusive. Some authors focused on the type of controls, other authors outlined the role of MCS in managerialization and the relation with professionalization. A few studies focused on some specific mechanisms, especially strategic planning and compensation. Some contributes dealt with MCS’ determinants and impacts. Differences between family and non-family firms were proposed. However, a clear and organized picture of the features of MCS in family firms, their determinants, and impacts has not yet been developed. Particularly, the impact of the distinctive features of family business on MCS represents an underdeveloped research field along with how MCS can be differently developed and used in different kinds of family firms. In the light of findings of the literature review, we propose a reference research framework on MCS in family business.

Details

Performance Measurement and Management Control: The Relevance of Performance Measurement and Management Control Research
Type: Book
ISBN: 978-1-78756-469-5

Keywords

Click here to view access options
Article
Publication date: 25 January 2021

Makoto Matsuo, Takami Matsuo and Kohei Arai

Although middle managers play important roles in forming strategies and generating innovation, few studies have explored the influence of management control systems (MCS

Abstract

Purpose

Although middle managers play important roles in forming strategies and generating innovation, few studies have explored the influence of management control systems (MCS) on employees’ behaviors or performance at the middle-management level. The purpose of this study is to examine the effect an interactive use of MCS has on individual performance at the unit level.

Design/methodology/approach

A longitudinal, multisource and multilevel survey was conducted among 373 nurses in 20 units at a Japanese public hospital.

Findings

The multi-level analyzes indicate that middle managers’ interactive use of MCS has a direct and indirect positive influence on individual performance, through proactive behavior, as well as through psychological empowerment and, subsequently, through proactive behavior.

Research limitations/implications

As the present study collected data from nurses at a Japanese hospital, it is necessary to conduct research in other countries using different occupations to verify the findings.

Practical implications

Organizations need to be aware that the interactive use of MCS can be an effective tool for empowering and motivating employees.

Originality/value

The present study contributes to the literature by clarifying the mechanisms of how the interactive use of MCS influences employees’ psychological and behavioral outcomes at the middle-management level.

Details

Journal of Accounting & Organizational Change, vol. 17 no. 2
Type: Research Article
ISSN: 1832-5912

Keywords

Click here to view access options
Article
Publication date: 30 April 2021

Shafique Ur Rehman, Hamzah Elrehail, Abdallah Alsaad and Anam Bhatti

This study explores central questions related to the connection between intellectual capital (IC) and the innovative performance of organizations through the mediating…

Downloads
271

Abstract

Purpose

This study explores central questions related to the connection between intellectual capital (IC) and the innovative performance of organizations through the mediating role of management control systems (MCS) and business strategies, as well as the moderating role of innovation capabilities.

Design/methodology/approach

The data was collected from the managers of small and medium enterprises (SMEs) through a structured questionnaire. Out of 1,152 questionnaires distributed, only 415 were used for analysis purposes. Structural equation modelling (SEM) was used to test the study hypotheses.

Findings

Intellectual capital significantly influences MCS, business strategies and innovative performance. Moreover, MCS, business strategies and innovative capabilities significantly improve innovative performance. MCS and business strategies significantly mediate the relationship between intellectual capital and innovative performance. Finally, innovative capabilities significantly moderate that between intellectual capital and innovative performance.

Practical implications

The current research examines how management should use MCS, business strategies, and innovative capabilities to take maximum benefit from intellectual capital in order to improve innovative performance.

Originality/value

This is pioneering research that develops a theoretical model to incorporate intellectual capital, MCS, business strategies, innovative capabilities and innovative performance. Even though the influence of various kinds of intangible assets/resources on innovative performance has been widely examined in the literature, scant attention has been paid to the role of MCS, business strategies, and innovative capabilities in leveraging the firm's intellectual capital.

Details

Journal of Intellectual Capital, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1469-1930

Keywords

1 – 10 of over 1000