Mediating Effect of Management Control Systems in The Interaction Between Ambidexterity and Organizational Learning in Brazilian NPO

Adriana De Azevedo Ramos Bandeira Arantes,Juliano Lima Soares

doi:10.4067/s0718-27242021000200056

Adriana De Azevedo Ramos Bandeira Arantes, Juliano Lima Soares

Open Access

https://doi.org/10.4067/s0718-27242021000200056

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Abstract

This paper investigates the mediating effect of management control systems in the interaction between ambidexterity and organizational learning in Brazilian non-profit organizations. Organizational learning is addressed in the literature as an antecedent of ambidexterity, whereas the use of management control systems finds dichotomous evidence in the literature as to its effect concerning those previous constructs. This descriptive research with a quantitative approach was carried out through a survey. The research sample comprised 227 valid responses collected from the presidents of the organizations. This work reveals the positive relationship between organizational learning and ambidexterity, as well as observing that the use of management control systems tends to inhibit innovation through a mediating effect. The approach of these constructs in nonprofit environments contributes to the need for sustainability of these organizations. Findings highlight the innovative panorama of these organizations between exploitation and exploration strategies and the achievement of ambidextrous skills, also pointing out the use of management control systems, as well as the evidence of organizational learning.

Highlights

This study investigates the role of the mediating effect of management control systems in the interaction between ambidexterity and organizational learning in nonprofit organizations (NPO)
The theoretical contribution of this work is due to the evidence of the use of management control systems by NPO and their contribution to innovative strategies in the industry studied, highlighting exploitation and exploration skills, in addition to demonstrate the level of ambidexterity and organizational learning in this environment
The practical contribution of this study to the work environment occurs through the presentation of an overview in NPO of the use of management control systems and the degree of ambidexterity of the organizations, as well as the existence of organizational learning, an environment that is involved in altruistic causes and that need to be sustainable over time

Summary

Introduction

Ambidexterity, organizational learning and management control systems are addressed in several surveys in the fields of applied social sciences (Cyert & March, 1992; Dibella & Nevis, 1999; Berry, Broadbent & Otley, 2005; Markides, Oyon & Schnegg, 2018) for being related to the sustainability of organizations, as well as how the managers of these companies conduct them, through organizational learning, and with their strategies aimed at incremental and radical innovation. The theoretical contribution of this work is due to the evidence of the use of management control systems by NPO and their contribution to innovative strategies in the industry studied, highlighting exploitation and exploration skills, in addition to demonstrate the level of ambidexterity and organizational learning in this environment. The practical contribution of this study to the work environment occurs through the presentation of an overview in NPO of the use of management control systems and the degree of ambidexterity of the organizations, as well as the existence of organizational learning, an environment that is involved in altruistic causes and that need to be sustainable over time. It contributes to the improvement of control mechanisms, the improvement of innovation policies, in addition to the contribution in training managers and in the preparation of workshops and lectures

Theoretical framework

Research methodology

Data presentation

Discussions

Concluding remarks

Seeks to strengthen and deepen relations with its current customers?

Uses innovation to satisfy its customers’ needs?

Findings

Are failures often discussed constructively in the institution?