Abstract
This study investigates subordinate participation in the planning processes of top management. Specifically, this study examines the independent and joint effects of subordinate participation in strategic planning and action planning on management control (MC) effectiveness. While these planning processes have been subject to significant research, little is known about the interrelationships between strategic planning and action planning. This study hypothesizes that strategic planning and action planning have both independent and joint effects on MC effectiveness. This study draws on a large survey database of top managers across 11 countries. The analysis shows that participative action planning has positive, direct effects on MC effectiveness, while no significant association is found for participation in strategic planning. We also find that participative strategic planning and participative action planning are interdependent control choices. However, contrary to expectations, we find that they act as substitutes rather than complements.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
