Control by culture: the role of clan values in shaping management control practices

This paper investigates how management control (MC) practices evolve in nature and interrelationship as control problems develop in a dynamic environment. Drawing on coupling theory, it examines how three MC practices – cultural control, budgeting control, and performance measurement – are (re)coupled across two distinct periods in a Chinese state-owned company. During the organisational transition from a government-oriented model to a more complex hybrid-business model, the findings indicate that control problems increase in both scope and complexity. Correspondingly, the combination of MC practices shifts from more informal culture control loosely coupled with budgeting, towards a more rigid and comprehensive budgeting and performance measurement system, supported by more formal culture control in a tightly coupled combination. The study illustrates how MC combinations evolve from loose to tight coupling through simultaneous adjustments in individual practices themselves and in their responsiveness and distinctiveness when combined. This suggests that flexibility in control may lie in an organisation’s capability to adapt – by revitalising existing MC practices, introducing new ones, and reshaping their combinations – rather than in the fixed nature of any single practice or type of coupling. The findings contribute to the literature on MC combination in general, and on MC in hybrid organisations in particular, while offering important practical insights into enhancing the effectiveness of MC in organisations.

Coexistence of Management Control Practices and Successful Product Innovation

Management control and controllership in new economy firms—a life cycle perspective

Several researchers have been concerned with management control, others have analyzed the specificities of SMEs, but research relating to management control in SMEs is still scarce. Management control is one of the foundations of company management and performance, it provides the visibility necessary to coordinate, plan and judge the actions of company stakeholders. Stemming from industrial accounting, it now appears as a means of controlling the complexity of organizations and mobilizing skills. Thus, the purpose of management control systems, in particular, is to present managers with methods and tools enabling them to provide them with useful information for decision-making. The objective of this work is twofolded: – identify the specific features of SMEs which may have an influence on their management system and therefore on their management control practices; – draw up an overview of the different management control tools and practices adapted to SMEs to finally confirm that management control in SMEs exists.

Management accounting and control practices in a lean manufacturing environment

Culture and management control interdependence: An analysis of control choices that complement the delegation of authority in Western cultural regions

The role of management controls in steering firms’ circular economy capabilities (CEC) has yet to be studied in a detailed manner. This study aims to investigate the use of management control (MC) practices combinations to promote CEC. A fuzzy-set qualitative comparative analysis conducted with input from 211 surveyed manufacturing firms provide multiple combinations of MC practices in achieving circular economy capabilities. The study reveals that MC practices found to be effective on their own should not be necessarily all employed at the same time to reach high levels of circular economy capabilities. Drawing on the dynamic capabilities view, three configurations’ combinations (C1, C2, C3) of MC practices are proposed to guide the evolving CEC development process at firm level. It is identified which MC practices suit firms depending on firms’ aims to become more sustainable. C1 is about intensive use of boundary and diagnostic controls for firms aim to create routinely procedures to consolidate CEC. C2 concerns the use of diagnostic and interactive controls combined with no use of belief controls to lead high CEC in a situation in which already exists a CE mindset and the aim is to flourish CEC. And C3 suggests a high use of belief controls combined with no utilisation of diagnostic, boundary and interactive systems to lead a high level of CEC, enabling firms to really embed them into firms’ strategy and operations. A practical roadmap is suggested to managers to apply the configurations’ combinations.

Background: Advanced, integrated information systems such as an enterprise resource planning (ERP) system have nowadays come to play such a crucial role for organizations and functions such as management accounting and control that in many cases, they would not function without the support of these systems. Public sector operations in general and municipal operations, in particular, are complex and require a lot of resources. Because of this, the managers working within this context need the support of advanced information systems to a large extent. Objectives: This paper aims at understanding how these new systems and their users, accountants, and controllers, perceive the opportunities they bring in a municipal setting. Methods/Approach: Out of 290 Swedish municipalities, 97 participated in the survey. Results: The results show that these systems have come to play an important part in working with management accounting and control issues. Conclusions: One conclusion that could be drawn from this study is that information supported by advanced information systems has become such an important necessity that management accounting as a function or phenomenon would not work without it. Therefore, the interdependency between information systems and management accounting and control practice could be described as intertwined.

Accounting and management controls in the classical Chinese novel: A Dream of the Red Mansions

Performance, risk, and overflows: When are multiple management control practices related?

This paper analyses a case study through a managerialist approach in order to investigate how private equity (PE) employs management control (MC) practices to support the knowledge transfer between professional-knowledge intensive business services (P-KIBS) and small and medium enterprises (SMEs). Furthermore, the paper highlights how SMEs face difficulties or barriers when adopting shareholder-oriented MC practices. Findings describe how PE works in a SME to reduce fails in shareholder-oriented MC practices due to limited resources and shortage of managerial expertise and how such practices are used by SME’s top management or entrepreneurs to better estimate the effects of a partnership with P-KIBSs and monitor their development.

This paper analyses a case study through a managerialist approach in order to investigate how private equity (PE) employs management control (MC) practices to support the knowledge transfer between professional-knowledge intensive business services (P-KIBS) and small and medium enterprises (SMEs). Furthermore, the paper highlights how SMEs face difficulties or barriers when adopting shareholder-oriented MC practices. Findings describe how PE works in a SME to reduce fails in shareholder-oriented MC practices due to limited resources and shortage of managerial expertise and how such practices are used by SME’s top management or entrepreneurs to better estimate the effects of a partnership with P-KIBSs and monitor their development.

Studying “and”: A perspective on studying the interdependence between management control practices

This paper investigates the impact of organisational culture on management accounting and control (MAC) practices in the United Arab Emirates (UAE). Data were collected using a self-administered survey of companies and multiple regression analysis (ordinary least squares) was employed to test the study's hypotheses. Empirical results show internal organisational cultures characterised by high levels of adhocracy (adaptability) or low levels of hierarchy appear to be more conducive to the adoption of MAC practices. On the other hand, organisations with a more market-oriented culture seem to be less reliant on budgeting as a means for exerting management control. In addition, the service industry displays significant differences in its MAC practices relative to other sectors' behaviour. This investigation thus yields new insights into the influences affecting implementation of MAC practices, which is useful for researchers, corporate managers, and other stakeholders.

This paper investigates the impact of organisational culture on management accounting and control (MAC) practices in the United Arab Emirates (UAE). Data were collected using a self-administered survey of companies and multiple regression analysis (ordinary least squares) was employed to test the study's hypotheses. Empirical results show internal organisational cultures characterised by high levels of adhocracy (adaptability) or low levels of hierarchy appear to be more conducive to the adoption of MAC practices. On the other hand, organisations with a more market-oriented culture seem to be less reliant on budgeting as a means for exerting management control. In addition, the service industry displays significant differences in its MAC practices relative to other sectors' behaviour. This investigation thus yields new insights into the influences affecting implementation of MAC practices, which is useful for researchers, corporate managers, and other stakeholders.