The impact of management control systems and managers’ educational background on the effectiveness of public cultural institutions in a post-transition economy

Abstract

This study examines the impact of management control systems on the effectiveness of public cultural institutions in the context of an emerging economy. Despite studies confirming the possibility of adapting various management control aids to meet the needs of cultural institutions, empirical evidence on the efficiency of their implementation is missing. Using a sample of 57 cultural institutions from Poland, we establish that the implementation of an advanced management control system may enhance the effectiveness of cultural institutions and the likelihood of fulfilment of their mission. In case of public museums, an efficient management control system appears to facilitate the receipt of public funding. In contrast, public theatres, which seemingly enjoy greater financial flexibility, are seen to primarily use management control aids to foster the growth of non-subsidy financing. The implementation of advanced management control systems in public cultural institutions is found to positively contribute to the fulfilment of their mission, even as it improves the self-assessment of their financial standing. The effectiveness of the sampled cultural institutions is found to be related to the educational background of their managers; further, economic/managerial education enhances the likelihood of fulfilment of the institutions’ mission.