The purpose of this paper is to provide evidence of accounting outsourcing practices in Malaysia and the management control strategies undertaken by these practising firms…
The purpose of this paper is to provide evidence of accounting outsourcing practices in Malaysia and the management control strategies undertaken by these practising firms to mitigate inherent risks.
This study employs survey methodology using structured questionnaires and case studies using interviews. A total of 51 companies responded to the questionnaires and two companies participated in the interview.
The survey data revealed that the primary reason for engaging in accounting outsourcing was to gain quality accounting service from the experts. With regard to management control strategies, it was shown that respondents place high emphasis of behavior, output and social controls. Further investigation using case studies involving a vendor and client companies reveal that the control mechanisms involved were stated in the outsourcing contract, namely the use of Key Performance Indicators (KPIs) and penalties. Informal controls were also used in both cases to assist in solving conflicts and dissatisfaction among vendors and clients.
The identification the control strategies in the accounting outsourcing process is useful for companies to manage the inherent risks in outsourcing relationships. The knowledge on the control practices by firms involved in accounting outsourcing provides additional assurance to potentials interested in seeking accounting services in this country.
This paper is driven by the lack of empirical evidence of accounting outsourcing practices in Malaysia and paucity of research into the role of management control in an outsourcing relationship. Despite the growth of the outsourcing industry in Malaysia, little has been done to understand the contribution of a professional service sector such as the accounting services to this industry.
Purpose – The purpose of this paper is to develop a framework which sheds new light on how sustainability control systems (SCS) can be used in proactive strategic…
Purpose – The purpose of this paper is to develop a framework which sheds new light on how sustainability control systems (SCS) can be used in proactive strategic responses to corporate sustainability pressures.
Design/Methodology/Approach – Corporate sustainability pressures are identified using insights from institutional theory and the resource-based view of the firm.
Findings – The paper presents an integrated framework showing the corporate sustainability pressures, proactive strategic responses to these pressures, and how organizations might use SCS in their responses to the corporate sustainability pressures they face.
Practical Implications – The proposed framework shows how organizations can use SCS in proactive strategic responses to corporate sustainability pressures.
Originality/Value – The paper suggests that instead of using traditional financial-oriented management control systems, organizations need more focus on emerging SCS as a means of achieving sustainability objectives. In particular, the paper proposes different SCS tools that can be used in proactive strategic responses to sustainability pressures in terms of (i) specifying and communicating sustainability objectives, (ii) monitoring sustainability performance, and (iii) providing motivation by linking sustainability rewards to performance.
The purpose of this chapter is to provide a comprehensive review of empirical research on performance management (PM) in former communist Central and Eastern European…
The purpose of this chapter is to provide a comprehensive review of empirical research on performance management (PM) in former communist Central and Eastern European (CEE) countries, to evaluate the state of knowledge in this area and suggest possible directions for future research.
An examination of the literature was undertaken to review the empirical studies treating on PM in ex-communist countries from CEE. A total of 96 journal articles, PhD thesis, and conference papers were identified, categorized, and analyzed according to research questions, methodology, and theoretical framework. Contributions are classified by countries, according to progress in transition process (post-transition/transition countries) and membership in the Soviet Union (Soviet/non-Soviet countries). The review examines publications in four languages (English, French, Romanian, and Russian).
The literature review identified various stages of development of PM research and practice in the different groups of CEE countries.
In post-transition CEE countries, PM research follows the trends settled up in the developed countries (quantitative studies examining the extent of usage of different PM tools, influence of contingent factors, relationship PM-strategy, and impact on company’s performance). Also, the findings illustrate the modernization of PM practices: increasing importance of nonfinancial indicators and integrated performance management systems (PMS), although financial indicators are prevailing.
On the contrary, in transition countries PM research and practices are at an early stage, the reviewed literature highlights some specific issues related to transition context: the dynamic aspect of PM, change management, importance of informal systems, cultural aspects, and business traditions.
Because of the large number of CEE countries and the diversity of their national languages, many studies conducted in native languages have not been addressed in this literature review, which is essentially based on publications in English and French. Only for three CEE countries (Russia, Romania, and Moldova) publications in national language were considered.
This literature review may be useful for practitioners, providing insights on the extent of diffusion and usage of different PM tools and identifying difficulties and pitfalls to avoid in their implementation.
The chapter represents one of the first contributions to the knowledge about PM research and practice in former communist CEE countries. The adopted framework for reviewing and classifying the literature allows identifying the differences in PM research and practices between post-transition/transition and Soviet/non-Soviet countries.
Although companies are increasingly embracing the sustainability discourse in their external reporting and disclosures, little is known about how management control…
Although companies are increasingly embracing the sustainability discourse in their external reporting and disclosures, little is known about how management control systems support sustainability within organizations. This is unfortunate, given the important role that properly designed Sustainability Control Systems (SCS) may play in helping firms to better face their social and environmental responsibilities. Starting from these premises, the aim of this essay is twofold. On the one hand, we present a review of the emerging stream of research on sustainability and management control mechanisms, in order to identify and discuss the link between the two. On the other hand, we try to illustrate the main unaddressed issues in this literature as a premise to exploring one possible way to advance research in this area. Specifically, we make a call for a more holistic approach to the study of SCS, which considers also their organizational and cultural dimensions in addition to their technical properties. A framework for informing future work on the topic is proposed, based on the concept of ‘control package’ (Malmi & Brown, 2008; Sandelin, 2008) complemented with notions from the complementarity-based approach developed in organizational economics (Grandori & Furnari, 2008; Milgrom & Roberts, 1995). By enhancing our understanding on how SCS operate as a package, the application of our framework should allow researchers to develop better theory of how to design a range of controls to support organizational sustainability objectives, control sustainability activities, and drive sustainability performance.
Organizations’ increasing concern for environment shows the interest in appropriate mechanisms that account for relevant flows of environment-related information. Today…
Organizations’ increasing concern for environment shows the interest in appropriate mechanisms that account for relevant flows of environment-related information. Today managers and researchers are promoting environmental management accounting (EMA) systems mechanisms as a means to incorporate the full spectrum of ecological data into day-to-day business decisions and foster green management execution. However implementation remains a challenge and many of the difficulties are associated with conceptual and practical problems in integrating ‘green’ information and providing guidance on effective implementation. In this context academics might investigate on further explanations on how to achieve excellence in both environmental and financial performance. Hence this chapter substantiates the need for more theoretical and empirical studies on EMA practices and proposes avenues for future research.
We review the growing body of EMA research to inform the reader of what has been studied to date and indicate the necessity for further investigation. In addition, we suggest areas for future research.
Our synthesis highlights the relevant aspects of EMA examined in prior studies. The review reveals unexplored facets that need to be investigated to complement existing knowledge. In particular researchers might explore the concept of environmental performance and the application of different forms of EMA within organizations. Moreover academics have the opportunity to further examine the role of EMA mechanisms in companies that do not pursue environmental results for economic benefits.
The chapter sheds some light on EMA literature and emphasizes the opportunities that new theoretical developments and appropriate research designs offer in the investigation of the remaining gaps in the literature.
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…
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.
This chapter reviews empirical studies into the relationship between management control, strategy and sustainability.
The review explores the theoretical frameworks and models used in previous empirical research as well as the research questions and methods applied to empirically explore this emerging research area.
Even if a growing body of empirical research has emerged over the last decade, our knowledge of how companies design or use management control to support sustainability strategy appears to be limited, providing considerable scope for further research.
Originality of the chapter
This review structures the state of our empirical knowledge in the area of management control, strategy and sustainability and makes suggestions for future research paths.
Notes the increasing interest in management accounting research in service organizations, even though it can still be said to be in an embryonic phase. Reviews the…
Notes the increasing interest in management accounting research in service organizations, even though it can still be said to be in an embryonic phase. Reviews the accounting and control implications of specific characteristics perceived to distinguish service organizations which have been observed in previous research in management accounting and service management. States that a review of previous research reveals an undue over‐emphasis on structural accounting implications at the expense of the behavioural side of accounting and control. Includes a case study in a public sector dental practice, with particular reference to the coexistence of formal and informal controls and formalization of control processes. Develops a framework consisting of a number of related research propositions and outlines future directions for research.
This paper aim to review existing research in the management control systems field in the banking industry. It identifies gaps in the existing literature and suggests some…
This paper aim to review existing research in the management control systems field in the banking industry. It identifies gaps in the existing literature and suggests some directions for future research.
The review was carried out principally by consulting leading accounting journals, followed by other relevant journals covering all publications from the inception of the particular journal to 2010. The published articles are categorized by their research topics, theories, methodologies and settings.
The review reveals a dearth of detailed studies on management controls in the banking sector. As evident from the sizeable number of descriptive studies, most prior studies do not engage in an in‐depth inquiry into control issues of banks, and most lack clear articulation either theoretically or methodologically. It finds that currently little is known on the concerns encountered by banks and the nature of management control practices deployed.
This review is selective and, while illustrative of the state of management control research in the banking sector, does not attempt a comprehensive coverage of all research. However, it identifies gaps in the current literature and makes calls for further research on a number of management control issues in the banking industry. Further, in light of the review findings, the paper offers some lessons and insights for practicing managers.
Although some general reviews on various facets of management accounting across time have been undertaken by past researchers, industry‐based reviews have not been their focus. Through a systematic review of management control research in the banking arena, this paper shows that despite both the significant position occupied by the banking industry in nations' economies and the importance of management controls for banks, there remains a need for researchers to pay adequate attention to exploring control issues in this sector.
The purpose of this article is to comprehensively review the empirical literature on management accounting and control in family businesses and to identify future research…
The purpose of this article is to comprehensively review the empirical literature on management accounting and control in family businesses and to identify future research avenues. Academic interest in the field of management accounting and control in family businesses has increased considerably during the past decade. Family businesses constitute a unique organisational form that apparently faces a lower degree of information asymmetry compared to non-family businesses. In turn, this may limit their need for management accounting and control systems. However, recent reviews of accounting in family businesses have not yet comprehensively reviewed the literature on management accounting and control. The present paper aims to close this gap.
This review follows the guidelines proposed by Tranfield et al. (2003) for conducting a systematic literature review. This paper has identified 33 relevant articles, which were scanned for findings on the antecedents, configurations and outcomes of management accounting and control in family businesses.
Management accounting and control seem to be generally less relevant to family businesses than to non-family businesses. This review suggests, however, that this finding is true primarily for smaller firms, not for larger firms. In family businesses, mutual trust, family-specific goals and the centralisation of power emerge as important antecedents of management accounting and control, but they are also affected by the use of management accounting and control instruments.
This paper identifies a need for more research concerning institutionalisation and the instruments of management accounting and control in family businesses. Future studies on this topic should include more demographic characteristics to isolate the family effect from other corporate governance effects, as this has been disregarded by most extant studies.
This paper is the first comprehensive review to provide a synthesis of the literature on management accounting and control in family businesses.