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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.

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.

The aim of this chapter is to highlight the role of organizational reflectiveness as a possible enabler for innovation. In order to support the process of innovation, we need to understand organizational learning on a more detailed level, including reflection as an elemental sub-process in experiential, transformational, and action learning.

We present a tool and preliminary empirical findings for measuring an organization’s level of reflectiveness. We also provide some preliminary empirical results regarding whether reflectivity results in the generation of new innovations relating to work practices and processes.

The chapter fills two research gaps, and in doing so contributes to measuring and controlling organizational learning and innovation activities. First, we complement the existing conceptualization of reflective practice by utilizing the management control system (MCS) (Malmi & Brown, 2008) in the analysis of reflectiveness on the organization level. Finally, in the conclusion, we present reflective practice as a potential concept and practical tool for enhancing the interactive use of MCS. The interactive use of MCS has been recognized for its potential in boosting learning, creativity, and innovations in certain contexts (Davila, Foster, & Oyon, 2009), but so far the definitions for interactive use remain descriptive and varied among management accounting theorists.

The approach in this study is predominantly conceptual, with empirical and exploratory findings derived from measuring the level of reflectiveness in three organizations. The study enhances the understanding of management control based on the theoretical notion of multilevel reflection on a practice-based level. Empirically, reflective practices are often studied as a learning phenomenon on the individual and collective levels. However, such an approach generally does not incorporate managerial pragmatism regarding the causes of institutionalized learning or the means of managerial control for enabling reflection and, in consequence, innovations.

Using data from 236 Mexican manufacturing facilities, we examine the relationship between management control systems and structures and environmental compliance and we test the applicability of management control theory in Mexican industry. We report that success in compliance with environmental regulations is significantly associated with degree of management commitment, planning, belief systems, measurement systems, and rewards. This study contributes to the management control literature by empirically testing the efficacy of management control systems and structures in Mexican industry. It contributes evidence about the implementation of environmental strategies in organizations. Finally, by focusing our analysis on Mexican companies, it gives us a rare view of management control and strategy implementation in a developing economy.

In recent times, the operating landscape of Small and Medium Enterprises (SMEs) environment can be described as constantly changing. Their performance is more dependent on the managers' ability to implement effective control/management practices suitable for their context and operating environment. Through a multi-site case study, we examine the peculiarities of control/management practices in four SMEs in the city of Bukavu to ascertain whether and how those practices contribute to SMEs' performance. Our findings indicate the predominance of informal practices, which include coordination methods similar to the balanced scorecard, budgeting practices, cost imputation, cash monitoring and inventory management. Compared to the results from literature, these practices did not differ much from those observed in the SMEs of developed countries and are likely to contribute to performance achievement, which corroborates the proposition of the contingency theory.

This volume of Advances in Management Accounting (AIMA) begins with a paper by Bento and White. This exploratory study aims at identifying the main characteristics of strategic performance measurement systems that influence the system outcomes and firm performance. Using data from nearly 2,000 companies in a wide range of industries, they employed path analysis and stepwise regression to test the model, and found empirical support for the model. The strategic performance measurement systems have a significant effect on human resource practices and business results. The degree of balanced scorecard adoption, the impact of the systems on human resources, and the use of nonfinancial performance measures were found to have the most effect.

To empirically test for an impact on profit performance when activity-based costing (ABC) is used in companies with customer service and low-price strategies. We also investigate whether the profit impact of ABC usage is affected by higher-quality information systems.

Survey.

We find a positive impact on profit performance when ABC is used by companies with customer service as a strategic priority but not when ABC is used by companies with lower emphasis on customer service. For companies emphasizing low-price strategies, we find a positive impact on profit performance, especially when ABC is used together with high-quality information systems.

This study develops a method of measuring strategic priorities of a firm. It divides firms into strategy groups based on their degree of emphasis on three strategic priorities: low price, flexibility, and customer service.

Identifies certain contexts when ABC is especially beneficial.

If the use of ABC information leads to better strategic and operational decisions, firm performance should improve. However, prior research on the impact of ABC on firm performance has found little to no connection and usually only when it is used with other practices. This is the first study to find an impact on profit performance for firms with customer service and low-price strategies and high-quality information systems.

Purpose – This chapter discusses the role that indices of corporate governance have had in comparative corporate governance research.

Design/Methodology/Approach – The authors begin with a short discussion of what corporate governance is and its main debates. Then, the authors review the main indices (which are also summarized in Table 1), highlighting their strengths and limitations as well as describing some of the findings that emanate from them. Then, the authors discuss the methodological and conceptual assumptions of corporate governance indices that may compromise their construct validity. The authors conclude with some encouraging suggestions for key methodological and research design issues to take into account in future comparative corporate governance.

Findings – Many methodological issues in the measuring and analysis of (comparative) corporate governance remain to be solved. First, although corporate governance practices have a direct effect on some of the firms’ strategic decisions, they may only have an indirect effect on firm performance. Second, it is possible that, after all, causality goes the other way around, i.e., the firm performance explains the adoption of certain governance practices. Third, there are also important challenges in measuring firm financial performance as well as measuring and comparing corporate governance effectiveness between firms from different governance settings.

Originality/Value – This is one of the first chapter to give an overview of the most current corporate governance indices, both academic and commercial, to discuss their underlying assumptions and limitations, and, finally, to provide specific directions for future research regarding comparative corporate governance.

This study proposes targeted modernization of the Department of Defense (DoD's) Joint Forces Ammunition Logistics information system by implementing the optimized innovative information technology open architecture design and integrating Radio Frequency Identification Device data technologies and real-time optimization and control mechanisms as the critical technology components of the solution. The innovative information technology, which pursues the focused logistics, will be deployed in 36 months at the estimated cost of $568 million in constant dollars. We estimate that the Systems, Applications, Products (SAP)-based enterprise integration solution that the Army currently pursues will cost another $1.5 billion through the year 2014; however, it is unlikely to deliver the intended technical capabilities.