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1 – 10 of over 47000
Article
Publication date: 3 May 2019

Nathalie Bénet, Aude Deville and Gerald Naro

Kaplan and Norton proposed the strategy map as a way to overcome the weaknesses of the balanced scorecard (BSC), but this approach may not be enough. The purpose of this…

1292

Abstract

Purpose

Kaplan and Norton proposed the strategy map as a way to overcome the weaknesses of the balanced scorecard (BSC), but this approach may not be enough. The purpose of this paper is to present a strategic management control package composed of three systems from strategic management and management control. This conceptual approach operationalizes strategic alignment, which is the core interest of the BSC.

Design/methodology/approach

The rationale for this research is derived from the literatures on business models (BMs), the BSC and management control packages. The authors first identified gaps in the BSC literature, which has underlined the BSC’s insufficient connection to strategy, and the strategic literature, which has criticized the BM as being too conceptual. The authors propose to fill these gaps through contributions from the management control package literature.

Findings

The findings are in line with the current literature on the interdependencies of management control systems. In response to the criticism of the BSC because of its weak strategic foundations, the authors provide a framework comprising three management systems: the BM, the strategy map and the BSC. This framework ultimately promotes two feedback loops that provide a dynamic view of the reciprocal influences of the BSC and strategy.

Research limitations/implications

Several authors note that the BSC suffers from a lack of conceptualization. The underlying assumptions and the conceptual and empirical validity of the cause-and-effect relationships are particularly questioned. Therefore, the purpose of this paper is to overcome the criticism linked to the “low” strategic alignment of the strategy map, and then of the BSC, by proposing a conceptual framework based on a package including three management systems: the BSC, the strategy map and the BM. A major limit lies in the purely conceptual dimension of this research, and it will be interesting to empirically investigate the conceptual package through longitudinal case studies.

Practical implications

The authors propose guidelines to develop a strategically aligned BSC through a three-step operationalization process to achieve a non-linear strategic management control. Moreover, the authors suggest empirical research avenues to address the weaknesses of Kaplan and Norton’s BSC and to enhance its connection to strategy through an integrated strategic management control package that includes a BM.

Originality/value

This paper adds value by proposing a package of management systems that includes both strategic management and management control perspectives. The authors, therefore, offer a way to bridge the gap between these research streams and highlight the interest of recent developments in the literature regarding the management control package.

Details

Journal of Applied Accounting Research, vol. 20 no. 1
Type: Research Article
ISSN: 0967-5426

Keywords

Book part
Publication date: 10 February 2010

Sylvie Héroux and Jean-François Henri

While the idea of control packages goes back to the early 1980s, empirical management accounting researchers have been reluctant to examine this broader view of management

Abstract

While the idea of control packages goes back to the early 1980s, empirical management accounting researchers have been reluctant to examine this broader view of management control. Past research has addressed the use of management control for the organization as a whole, as well as for specific objects of control. While those objects of control typically involve information available for internal uses, we do not know much about the role of management control when the object of control is comprised of information intended to be disclosed outside the organization. This study aims to examine the role of a control package to manage web-based corporate reporting. More specifically, this study aims to examine the antecedents and consequences of a management control package related to web site content. The results suggest that perceived environmental uncertainty and stakeholder orientation are key factors that influence the extent of use of the management control package. Moreover, the extent of use of a management control package is associated with the quality of web site content but not the quantity of information disclosed.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-84950-755-4

Article
Publication date: 19 June 2020

Terje Berg and Dag Øivind Madsen

This paper examines the evolution of a company's management control package (MCP) over time. The overall aim is to gain a deeper understanding of internal and external…

1150

Abstract

Purpose

This paper examines the evolution of a company's management control package (MCP) over time. The overall aim is to gain a deeper understanding of internal and external factors shaping a company's management control package.

Design/methodology/approach

This paper employs a retrospective single-case methodology where a company is followed over a ten-year period (2005–2015). Theoretically, the paper builds on Malmi and Brown's (2008) MCP framework while also utilizing Simons' (1994) levers of control framework as well as Abrahamson's (1991) management fashion theory.

Findings

The company's MCP evolved in several ways. First, there was a change from using an interactive to a diagnostic budget. Second, the Balanced Scorecard approach was replaced by a narrow, strong focus on shareholder value. Finally, the quality system was reduced from a system for continuous learning and improvement to a system for compliance purposes only.

Research limitations/implications

This paper offers naturalistic generalization to enable a holistic understanding of the changes to a management control package over time. The findings suggest that history matters in the design and configuration of MCPs. The MCP has evolved from being balanced and interactive, resembling Beyond Budgeting, to a diagnostic approach resembling traditional budgetary control. In 2005, the different controls were complementary and used for different purposes, while in 2015 the controls solely support the creation of shareholder value. The findings also indicate that management accounting innovations such as The Balanced Scorecard and Beyond Budgeting in this specific context may be considered fashions or even fads.

Practical implications

The findings of the paper could be useful for CFOs and other managers who are involved in the design and configuration of MCPs. The findings show that internal and external events shape how much leeway managers have in the design and configuration of MCPs.

Originality/value

The paper answers a call for more empirical studies on MCPs. By adopting a retrospective approach, the paper can provide insight into the temporal evolution of a control package.

Details

Journal of Applied Accounting Research, vol. 21 no. 4
Type: Research Article
ISSN: 0967-5426

Keywords

Book part
Publication date: 28 September 2020

Paula van Veen-Dirks and Anneke Giliam

Purpose – This study focuses on the relationship between local governments and public sector joint ventures (JVs). Public sector JVs are separate administrative entities…

Abstract

Purpose – This study focuses on the relationship between local governments and public sector joint ventures (JVs). Public sector JVs are separate administrative entities that undertake public service activities on behalf of local governments. The aim of this study is to examine the vertical management control packages that are used by local governments to control the relationship with their public sector JVs.

Design/methodology/approach – Two case studies have been conducted in two public sector JVs, owned jointly by more than 20 local governments. The analysis of the two cases is informed by an integrated conceptual framework describing how transactional and relational factors influence control, trust, and risk in the context of public sector JVs.

Findings – The case studies provide a nuanced understanding of the interplay between the vertical management control packages, trust between the parents and the public sector JVs, and risks as perceived by the local governments. The case findings not only reveal how local governments struggle with adequate outcome control but also highlight how and why they rely on behavioral control. A related finding is that while the probability of poor business performance does not have a significant impact on the design of the vertical control packages, the social impact of failure has the potential to create a sense of urgency with regard to changes in the design of vertical management control packages.

Originality/value – This study adds to the literature on interorganizational relationships by providing insight into the use of vertical management control packages in the specific, but relevant, setting of public sector JVs.

Article
Publication date: 12 October 2015

Mark Evans and Basil Phillip Tucker

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…

5940

Abstract

Purpose

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).

Design/methodology/approach

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.

Findings

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.

Originality/value

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”.

Details

Qualitative Research in Accounting & Management, vol. 12 no. 4
Type: Research Article
ISSN: 1176-6093

Keywords

Article
Publication date: 18 April 2016

Winnie O’Grady and Chris Akroyd

Budgets are commonly viewed as a central component of management control systems (MCS). The beyond budgeting literature argues that managers can develop other controls to…

3311

Abstract

Purpose

Budgets are commonly viewed as a central component of management control systems (MCS). The beyond budgeting literature argues that managers can develop other controls to replace budgets. The purpose of this paper is to examine the MCS package of an organisation which has never in its history had a traditional budget.

Design/methodology/approach

The authors carry out an ethnomethodology informed case study at Mainfreight, a large multinational logistics company headquartered in New Zealand. Data were collected from interviews with managers and accountants, internal company documents, published corporate histories, a company presentation, the corporate Web site and site visits.

Findings

The authors found that Mainfreight’s MCS package was explicitly designed based on cultural and administrative systems which supported the planning, cybernetic and reward systems managers used to monitor key drivers of short-and long-term performance with a focus on profitability.

Research limitations/implications

The implication of the finding is that a more holistic view of the MCS package is necessary to understand how control is achieved within organisations that have moved beyond budgeting.

Practical implications

The authors show that organisations can operate without traditional budgets and still maintain a high level of control by developing appropriate cultural and administrative control systems that are internally consistent with their planning, cybernetic and reward systems.

Originality/value

The scarcity of organisations that have never had budgets limits opportunities to investigate an MCS package intended to function without budgets. This unique case setting reveals the design of an integrated non-budgeting MCS package.

Details

Qualitative Research in Accounting & Management, vol. 13 no. 1
Type: Research Article
ISSN: 1176-6093

Keywords

Article
Publication date: 2 April 2020

Soufiane Kherrazi

This paper addresses the issue of management control (MC) of collaborative innovation. It attempts to fill this gap in MC literature by considering both contingency and…

Abstract

Purpose

This paper addresses the issue of management control (MC) of collaborative innovation. It attempts to fill this gap in MC literature by considering both contingency and internal consistency perspectives influencing the MC setting, especially in the context of R&D alliances. Opening the boundaries of R&D has implications for the design of MC. It involves particular challenges and raises specific tensions of competing demands between control and innovation.

Design/methodology/approach

Based on a quantitative survey of sponsored European consortia and using the structural equation modeling method, we design an interfirm MC model to support collaborative innovation.

Findings

Our results show that the innovation ecosystem plays a critical role as an institutional element shaping the MC design. We also infer based on our findings that the package approach is more suitable than the system one to set up control practices within a collaborative innovation context. Thus, the package allows several configurations of MC in an ongoing process that, in turn, leads to deal with organizational tensions and conflicting pressures in a dynamic way. Accordingly, the package's effectiveness seems to be related to its “fit” with the alliance context rather than its “internal consistency”.

Research limitations/implications

This study advances MC literature by combining two theoretical perspectives to address interfirm MC, especially in the field of innovation that raises specific challenges. The findings lead also to build a bridge with a new perspective, i.e. evolutionary perspective, as the package suggests an ongoing process of resolving dynamic tensions between control requirements and innovation needs.

Practical implications

The study suggests a model of MC package that provides managers with a range of viable configurations and alternatives to support collaborative innovation, control activities, adapt to changes, resolve tensions and drive performance.

Originality/value

Instead of prior studies, the study relies upon both contingency and internal consistency perspectives to examine the MC design and structuring mode. In addition, the empirical part of this research deals with the case of European sponsored R&D consortia as a form of collaborative innovation. Unlike traditional R&D alliances, management control within sponsored consortia seems to be more complex to address as the consortium is multilateral, the grants are public and the goals may diverge given the broad variety of organizations the consortium involves.

Details

European Journal of Innovation Management, vol. 24 no. 3
Type: Research Article
ISSN: 1460-1060

Keywords

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. 18 no. 5
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 27 February 2018

Roy Liff and Gunnar Wahlstrom

The purpose of this paper is to investigate how the management control system, the bank’s control package, influences opinion about the usefulness of risk measurement (RM…

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Abstract

Purpose

The purpose of this paper is to investigate how the management control system, the bank’s control package, influences opinion about the usefulness of risk measurement (RM) in different control contexts before and after a financial crisis, to understand what influences the usefulness of enterprise risk management (ERM) manifested in RM.

Design/methodology/approach

The study is based on semi-structured interviews in 2000-2010, with senior bank managers of two international banks (Bank A and Bank B) – both ranking among the top 100 in the world but differing structurally and culturally.

Findings

The two banks took opposite trajectories. Bank A went from high to low expectations of usefulness; Bank B went from low to high expectations. The different attitudes toward RM exhibited by Bank A and Bank B are explained by differences in their control packages, manifested by technocratic control and socio-ideology.

Originality/value

This study reveals that there are not merely different degrees of RM usage in the two banks but that they also show two diverting trajectories. Given this finding, the significance of the organization structure and its control packages (especially the alignment between these two factors) is analyzed to find a plausible explanation for the different experiences of senior managers toward the usefulness of RM. This study contributes to ERM research and to the contingency theory of management accounting.

Details

Qualitative Research in Accounting & Management, vol. 15 no. 1
Type: Research Article
ISSN: 1176-6093

Keywords

Article
Publication date: 18 June 2021

A.K. Siti-Nabiha and Roshni Ann George

This paper investigates the extent to which externally led benchmarking may have facilitated performance management design and use in Malaysian local authorities.

Abstract

Purpose

This paper investigates the extent to which externally led benchmarking may have facilitated performance management design and use in Malaysian local authorities.

Design/methodology/approach

A longitudinal qualitative study of local authorities in Malaysia was undertaken, comprising interviews with key officers during the introduction of process-based key performance indicators (KPIs), and following the imposition of benchmarking (i.e. relative performance evaluation) on local authorities. Complexity theory was used in the analysing and theorising of data.

Findings

External benchmarking mechanisms facilitated only operational performance management, with strategic performance management merely ceremonially adopted. As the focus was on mainly operational KPIs, strategic goals were not translated into detailed action plans and outputs at departmental level. In addition, operational and strategic performance management packages were decoupled. Thus, the efforts of external actors resulted in operational controls suppressing rather than facilitating strategic processes.

Research limitations/implications

There is a need to transition from purely externally led benchmarking to internally driven benchmarking in local government, whereby benchmarking forms part of the interactive performance management mechanisms that lead to institutional learning and improvement.

Practical implications

Benchmarking activities should be based on comprehensive analyses of performance management design and use. A reflective approach to continuously identify gaps or weaknesses in performance management systems will enable local government administrators to improve systems and processes in a timely manner to meet stakeholder needs.

Originality/value

This paper explains the impact of central government policy and benchmarking initiatives on other levels of government. We have built on previous literature by examining the connection between external benchmarking and internal performance management design and use in local government. In relation to this, and following calls for research on holistic performance management, the integration between operational and strategic performance management packages was also examined.

Details

Journal of Applied Accounting Research, vol. 22 no. 5
Type: Research Article
ISSN: 0967-5426

Keywords

1 – 10 of over 47000