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Open Access
Article
Publication date: 16 July 2020

Bert Steens, Anouk de Bont and Frans Roozen

The plethora of changes in the corporate governance landscape over the past two decades has the potential to tighten governance regimes and influence the preference of supervisory…

3850

Abstract

Purpose

The plethora of changes in the corporate governance landscape over the past two decades has the potential to tighten governance regimes and influence the preference of supervisory board members vis-à-vis the involved decision-making role of business unit (BU) controllers and their independent fiduciary role. Stricter financial reporting and compliance requirements may lead organizations to prioritize the latter role. However, recent studies support the need to balance these roles, inducing the potential for role conflict. The purpose of this study is to shed light on the influence of a tight and loose governance regime on this balance as preferred by supervisory board members.

Design/methodology/approach

This study uses a unique data set from an experiment among 73 supervisory board members. The authors take their perspective because compliance with governance codes and corporate policies are relevant topics for their function.

Findings

The authors find evidence for the preference of supervisory board members for “all-round” BU controllers who, irrespective of the governance regime, demonstrate substantial levels of fiduciary and decision-making qualities and deal with the resulting role conflict.

Originality/value

The outcomes of the experiment among supervisory board members provide evidence for their preferences concerning the balance of the two primary controller roles and for the potential of role conflict. The authors have not found studies that provide such empirical evidence.

Details

Corporate Governance: The International Journal of Business in Society, vol. 20 no. 6
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 18 April 2016

Tiina Henttu-Aho

This paper aims to investigate the emergence of the enabling characteristics of new budgetary practices and their implications for the role of controller.

5301

Abstract

Purpose

This paper aims to investigate the emergence of the enabling characteristics of new budgetary practices and their implications for the role of controller.

Design/methodology/approach

The longitudinal perspective of this qualitative case study is based on interviews of controllers and managers involved in budgetary work. This study monitored the four enabling characteristics of management control, namely, repair, internal transparency, global transparency and flexibility (Adler and Borys, 1996), related to the new budgeting practices in one global paper company.

Findings

The findings of the study demonstrate that the implementation of rolling forecasting was a major attempt at “repair” to remedy the incompleteness of accounting information, which made controllers experts in producing and delivering more realistic forward-looking information in the organization. The increasing internal and global transparency of new budgetary practices enabled controllers at various levels of organization to develop new competences, which helped controller network to build a holistic view of the totality of control and supply more relevant information in organization. Moreover, the inherent flexibility of the system was a major condition for improving organizational effectiveness in budgetary work. However, the study shows that the controller’s attitude towards enabling formalization is not necessarily positive if the system is not aligned with professional mindset and competence.

Originality/value

This study adds to the understanding of the complementarity between new developments of budgeting and controller role by addressing the enabling uses of management control systems, which have the potential to enhance the controller role change.

Details

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

Keywords

Book part
Publication date: 4 October 2018

Sebastian P. L. Fourné, Daniel Guessow and Utz Schäffer

We develop and validate measurement instruments for the business partner, watchdog, and scorekeeper roles of controllers. This study addresses calls to enhance the quality of…

Abstract

We develop and validate measurement instruments for the business partner, watchdog, and scorekeeper roles of controllers. This study addresses calls to enhance the quality of survey research in management accounting by devoting more attention to scale development and especially to construct validity. By focusing on the activity sets of the controllersroles, we provide a theoretically and empirically grounded picture of their current roles. The measurement instruments presented in this study enable systematic research progress on controller roles, their relationships, antecedents, and performance outcomes.

Details

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

Keywords

Article
Publication date: 5 January 2021

Ricardo Malagueño, Jacobo Gomez-Conde, Yannick de Harlez and Olaf Hoffmann

The authors examine the extent to which a controller's involvement in project functions (namely definition and scope, organization, constraints management and risk management…

Abstract

Purpose

The authors examine the extent to which a controller's involvement in project functions (namely definition and scope, organization, constraints management and risk management) cascades down to project performance.

Design/methodology/approach

The authors test the study’s framework using survey data from a sample of project leaders in German and Swiss firms. Responses were analyzed using the partial least squares (PLS) technique.

Findings

The authors find that controllers contribute to project success via the previously described project functions. Further, the study reveals the crucial role of controllers in managing uncertainty and project risks.

Research limitations/implications

Although the arguments used in this research were not country specific and suggest that the findings of this study also apply to the controller professional in general, this study clearly acknowledges that further research is needed to address the effects of this role in different jurisdictions given the specific characteristics of controllers acting in German-speaking countries.

Practical implications

The authors provide insights on the role of controllers at an operational level, like project management, highlighting the need for controllers to support an effective project governance.

Originality/value

The authors add to the literature by examining the role of controllers in highly knowledge-intensive, highly pressured, task-driven, interdependent and dynamic operational settings, thus contributing to a better understanding of how controllers function at an operational level. The authors also strengthen a broader role of controllers in project management that goes beyond their historical controlling activities to include more modern functions, extending previous studies analyzing their professional identity.

Details

Journal of Applied Accounting Research, vol. 22 no. 2
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 25 May 2012

Alan Graham, Susan Davey‐Evans and Ian Toon

The purpose of this paper is to study the work roles undertaken by financial controllers. The literature suggests a recent transformation, with the role of the finance…

3860

Abstract

Purpose

The purpose of this paper is to study the work roles undertaken by financial controllers. The literature suggests a recent transformation, with the role of the finance professional making a significant shift from “score‐keeper” to a “value‐added” business partner. The paper suggests that the role has undergone a more complex change and combines elements from both of these descriptions.

Design/methodology/approach

The methodological approach starts by analysing job specifications of financial controller vacancies. Using survey data, it then establishes what tasks they now do. Finally, it uses interviews to understand whether financial controllers believe that they could add more value to the organisation and if any barriers exist preventing the transformation of the role.

Findings

The findings suggest that the role of financial controller has not transformed in recent years, but has instead enlarged, incorporating more “forward‐looking” elements, which are concerned with the management of the whole business. These developments have not replaced the “traditional” tasks such as reporting and control, but are supplementary to them. The research also indicates that financial controllers believe that the role should be expanded and that they could add more value, but are constrained by external pressures.

Research limitations/implications

The authors acknowledge that this paper does not consider the contingent factors which shape the individual role within different types and sizes of business, but nevertheless it discusses many of the characteristics associated with the complex role.

Originality/value

This paper has implications for finance and accounting managers working in business, the accounting bodies and those involved in accounting education.

Details

Journal of Applied Accounting Research, vol. 13 no. 1
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 27 March 2007

Laura Zoni and Kenneth A. Merchant

The purpose of this paper is to report the findings of a study designed to understand how involved controllers are in management decision processes, what causes more or less…

3942

Abstract

Purpose

The purpose of this paper is to report the findings of a study designed to understand how involved controllers are in management decision processes, what causes more or less involvement in those processes, and whether involvement is significantly associate with performance.

Design/methodology/approach

To test the research propositions developed from a review of prior literature, data were collected from large Italian corporations using a questionnaire survey.

Findings

The results show that most of the controllers are at least somewhat involved in management decision processes, and some are highly involved. A complex set of factors determine the extent and breadth of controller involvement. Controller involvement in either strategic decisions, operating decisions, or both types of decisions is positively related to some situational variables, including capital intensity, operating interdependency, line managers' financial competence, formalization of strategic planning and budgeting processes. It is negatively related to the use of controller positions as training for line roles. Overall, controller involvement was found to be positively associated with performance.

Research limitations/implications

This study provides support for some prior research findings and some extension of prior theory. Some findings were not consistent with expectations. This study was based on a small sample – 17 organizations; it used some crude measures and scales; and the findings can be generalized reliably only to the population studied here – large Italian industrial firms. More research is needed for further tests and explorations of these findings.

Practical implications

This research supports modern advice given to involve controllers highly in management decision‐making processes, but it also refines that advice by showing where high involvement is more (or less) desirable.

Originality/value

These results provide some useful support of prior findings and some modifications and extensions that further our understanding in this area of importance both to researchers and practitioners.

Details

Journal of Accounting & Organizational Change, vol. 3 no. 1
Type: Research Article
ISSN: 1832-5912

Keywords

Open Access
Article
Publication date: 27 April 2020

Justyna Dobroszek

This paper aims to identify the occupational profiles of a logistics and a supply chain (SC) controller, both promising SC professions, examining the required competences and…

5349

Abstract

Purpose

This paper aims to identify the occupational profiles of a logistics and a supply chain (SC) controller, both promising SC professions, examining the required competences and tasks undertaken while taking into account current trends in supply chain management and its wider dimensions.

Design/methodology/approach

The study used a content analysis based on job advertisements for the position of logistics controller and SC controller. The collected material allowed the construction of an occupational competence mix model in the style of Cheetham and Chivers for the logistics and SC controller, and the identification of the level of competence of both professions, using the model proposed by Czapla. In addition, the analysis of the data was supplemented by use of the Anova test and a radar chart.

Findings

The SC and logistics controllers have a high degree of similarity in both the meta and core competences areas. Similarities also occur in the case of the analysed groups of tasks undertaken by these professions. Tasks in the areas of “definition” and “maintaining” prevail. The SC controller and the logistics controller are considered “engaged inspirers” because they have reached this level of professional competence. Both these professions can ensure an effective, sustainable and transparent SC through direct cooperation with the SC manager and/or logistics manager.

Research limitations/implications

This study uses a content analysis based on job advertisements addressed to the German market. These job advertisements are standardized, and therefore, provide only a general outline of the competences and tasks of the SC and logistics controllers.

Practical implications

The study provides information to practitioners by identifying the competences and tasks assigned to the SC and logistics controllers that are needed to improve the efficiency and transparency of the SC and its management. The research is an incentive for people involved in education to adapt changes in curricula in the business (accounting, controlling and logistics) and engineering (related to logistics) fields of study by creating courses based on SC controlling or/and logistics controlling.

Originality/value

The study shows the current, necessary changes for SC professionals (e.g. the appointment of a SC controller and/or logistics controller) resulting from changes in business and the challenges for SC management (e.g. transparency and sustainability).

Details

Supply Chain Management: An International Journal, vol. 25 no. 5
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 1 January 2006

Ivo De Loo, Peter Nederlof and Bernard Verstegen

The research goal was to trace behavioural patterns of management accountants, comprising activities and courses of action, in order to enhance understanding of the management…

1584

Abstract

Purpose

The research goal was to trace behavioural patterns of management accountants, comprising activities and courses of action, in order to enhance understanding of the management accounting profession.

Design/methodology/approach

Protoscripts were derived, using interview techniques and a research method called “interpretive interactionism”. These protoscripts depict observable, recurrent activities and patterns of interaction characteristic for a group of persons, and can be used in various types of situations.

Findings

The paper describes the procedure and outcome of the collection of behavioural protoscripts used by management accountants and controllers, as well as their possible ordering.

Research limitations/implications

The findings enlarge understanding of the controller profession, but are limited solely to controller activities. The protoscripts collected are stereotypical, at least for the controllers interviewed. Of course, all human experience is interpretation and it should be acknowledged that interpretations are never complete.

Practical implications

The control mechanisms and instruments that emerge in an organisation are the result of several interrelated factors and processes. Of special interest here is the behaviour of management accountants and controllers in shaping, maintaining and exerting control. Behavioural protoscripts can show how management accountants give contents to their role and structure their daily work.

Originality/value

Scripted behaviour of management accountants has received little prior research attention, especially in combination with the research method of interpretive interactionism.

Details

Qualitative Research in Accounting & Management, vol. 3 no. 1
Type: Research Article
ISSN: 1176-6093

Keywords

Article
Publication date: 11 January 2013

Maria Serena Chiucchi

The aim of this paper is to contribute to understanding how measuring intellectual capital (IC) can favor IC mobilization, examining the role of actors who design and implement…

1679

Abstract

Purpose

The aim of this paper is to contribute to understanding how measuring intellectual capital (IC) can favor IC mobilization, examining the role of actors who design and implement the system in influencing managers’ IC learning processes and their take up of IC management practices.

Design/methodology/approach

A constructive case study, in which the researcher was directly involved in measuring IC, is presented. Kolb's experiential learning theory model examines if and how the actors mobilized IC and how the researcher and controller influenced their learning process.

Findings

The paper shows that actors must complete an experiential learning cycle to mobilize IC. The controller's role is pivotal in promoting IC mobilization, provided he/she experiences a deep learning process and he/she moves from “IC counting” to “IC accounting.” The paper also highlights how research intervention contributes to IC mobilization by influencing the actors’ learning process.

Research limitations/implications

The paper is limited to one Italian company, so the results cannot be generalized; they were influenced by the researcher's “strong” interventionist approach and by the model adopted.

Practical implications

Companies introducing IC will become aware of barriers and levers to measuring and mobilizing IC, thus enabling them to devise strategies to avoid the former and take advantage of the latter.

Originality/value

The experiential learning theory model offers an alternative way of understanding how IC measurement produces effects and how the controller and researcher can influence the managers’ IC learning journey thus contributing to mobilization of IC.

Details

Journal of Intellectual Capital, vol. 14 no. 1
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 14 June 2013

Thommie Burström and Mattias Jacobsson

The purpose of this paper is to describe and analyze the liaison role of project controllers in new product development (NPD) projects.

1342

Abstract

Purpose

The purpose of this paper is to describe and analyze the liaison role of project controllers in new product development (NPD) projects.

Design/methodology/approach

This paper is based on a case study of an industrial new product development project. In total, 68 in‐depth interviews were conducted and 32 meetings were observed. Using an inductive approach, this paper scrutinizes the roles of three specific individuals – their formal role as project controllers and their informal role as liaisons.

Findings

The study found that project controllers play a crucial part in the everyday work of projects – both formally and informally. Project controllers undertake important liaison activities that are not a part of their formal roles in which they extend their responsibilities to include informal activities such as peacekeeping, probing, nailing, process implementation and streamlining.

Practical implications

This paper argues that managers must identify and acknowledge the importance of informal liaisons and liaison activities among project members because such activities are of crucial importance for the facilitation of communication and for work‐flow coordination. By viewing the project controller as someone who is “dressing the project in numbers”, the role can be understood as a support function aimed at close interaction and cross‐functional learning, rather than a function aimed at distant supervision and control.

Originality/value

This paper provides important insights into informal aspects of project roles and the everyday work of project controllers.

Details

International Journal of Managing Projects in Business, vol. 6 no. 3
Type: Research Article
ISSN: 1753-8378

Keywords

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