Abstract
This study presents the management control patterns within the business governance of the traditional clannish society in Somalia. The study attempts to understand and report the nature and dynamics of control approaches that are used for business governance in Somalia. A qualitative case study was used to gather the data. Semi-structured interviews with the top executive directors, observation and document analyses were employed to triangulate the data sources. The findings of the study show the role of traditional cultural settings on the control systems in Somalia’s traditional context. The prevalent control patterns include clannish ownership, paternal leadership, friendship and horizontal relationships, verbal communication and selective employment of owners and staff. These control patterns have promoted centralization of decisions including; performance measurement, incentives management and restricted financial information. The outcome of the study calls for further researches to better understand management controls, particularly that of the developing nations.
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More From: Australian Journal of Business and Management Research
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