Appendix 1: Items and Results Principal Component and Reliability Analysis

Abstract

This article examines how organizations can achieve careful employee behaviour with respect to the use of financial and material resources. We focus on the impact of formal or so-called hard controls and informal or so-called soft controls. This study is based on a survey of one sample of 238 respondents for financial management and one sample of 197 respondents for material resources management in the Dutch defence organization. The results of regression analyses indicate that soft controls are especially conducive to careful financial management and material resources management. Hard controls only show a significant relationship with careful use of financial and material resources when mediated by soft controls. Furthermore we found a nearly significant moderation effect indicating that soft controls strengthen the relationship between hard controls and material resources management. Implications of the findings and suggestions for future research are presented.