Impact Of Management Control Systems Research Articles

The impact of management control systems on employees’ behavior during remote work

The impact of management control systems on employees’ behavior during remote work

Management Control System and Firm Performance in Nepalese Commercial Bank

This study focused on the interplay of control levers and organizational learning as well as the impact of Management Control Systems (MCS) on firm performance in Nepalese Commercial Banks. The study aims to examine the relationships between MCS levers (belief, boundary, diagnostic, interactive) and firm performance and assess the mediating role of organizational learning in this relationship. The study was done using descriptive and causal-comparative design, where a survey was carried out by deriving the responses from the employees of various commercial banks in Kathmandu. The findings of the study highlighted the significant correlations between MCS, organizational learning, and performance, highlighting MCS as a key tool for enhancing performance in the Banking sector. This study acknowledges limitations such as focusing only on Kathmandu and suggests future research to expand geographically and explore other sectors for broader applicability. Keywords: Management Control Systems, Levers of Control, Organizational Learning, Banking Sector.e other sectors for broader applicability.

Roles of Mobilized Controls and Environmental Uncertainty on Supply Chain Resilience: An Empirical Study From Dynamic-Capabilities-View and Levers-of-Control Perspectives

COVID-19 creates big challanges to supply chain management. This article empirically examines the impact of management control systems (MCS) on managing supply chain resilience (SCR) to enhance organizational competitiveness under environmental uncertainty. Drawing on the dynamic capabilities view (DCV) theory and levers of control (LoC) framework, an industrial survey was conducted. Analyses performed on the collected data from 405 manufacturing firms reveal that the effects of MCS on SCR and organizational competitiveness depend on the nature and use of mobilized controls. Different from conventional wisdom, the study suggests that belief, boundary, and interactive systems enable firms to achieve SCR and these systems have positive effects on organizational competitiveness through SCR. Moreover, interestingly, diagnostic systems seem to play no role in strengthening SCR and organizational competitiveness. The study thus argues that firms should employ the enabling characteristics of belief and interactive systems, along with the controlling features of boundary systems to manage SCR and ultimately be more organizational-competitive. The research also uncovers that environmental uncertainty positively moderates the indirect effects of MCS on organizational competitiveness through SCR. Indeed, the study indicates that firms evolving in highly uncertain and dynamic environments tend to increase the use of different MCS to generate detailed information that is essential to strengthen SCR. Overall, this theory-based empirical research provides novel insights regarding how MCS would contribute to improving SCR and organizational competitiveness, especially under disruptions such as COVID-19.

MANAGEMENT CONTROL SYSTEMS, E-GOVERNMENT DIGITAL PLATFORM AND JOB PERFORMANCE : THE MODERATING ROLE OF TRANSFORMATIONAL LEADERSHIP

An organization's Management Control System (MCS) is crucial. The environment, technology, organizational size, and business strategy are the factors that determine the Management Control System. The State Treasury and Budget System (SPAN) is one of Indonesia's digital e-government systems. This study aims to examine the impact of Management Control Systems and digital e-government platforms with transformational leadership as a moderator on the productivity of SPAN users in the Indonesian Directorate of Treasury. The successful implementation of the digital platform using the UTAUT model variable. The respondents of this study are 171 respondents as a user of the State Treasury and Budget System (SPAN) digital platform throughout Indonesia at the Ministry of Finance office of the State Treasury Directorate. This study finds that Facilitating Condition, Habit, and Feature-Level of Use have a positive effect on Job Performance, while management control systems and behavioral intentions do not affect Job Performance. Transformational leadership strengthens the influence of Feature-Level of Use on Job Performance. This research shows that in government organizations, the management control system is important in supporting the goals of organizations to provide understanding regarding vision, mission, and goals. In government organizations, there are other agency units like the Internal Compliance and Transformation ambassadors who participated in this area. These units are not usually the highest leadership who provide formal activities. Another implication to enhance employee work performance, a transformational leadership style is required.

Building Trust and Leadership: The Impact of Management Control Systems and Human Resource Competence on Financial Performance. Study at Perumda BPR Garut

Building Trust and Leadership: The Impact of Management Control Systems and Human Resource Competence on Financial Performance. Study at Perumda BPR Garut

Implementation of Enterprise Resource Planning (ERP) in Indonesia to Increase the Significant Impact of Management Control Systems

To improve the Management Control Systems, an accidental sampling (non-probability sampling) method is used to apply Enterprise Resource Planning (ERP). Export and import service companies in the Jakarta Capital City area became the population in this study, with the total sample used is 100 respondents. 3 (three) variables that are the primary key of this research are Management Control System (X1) is an independent variable, and ERP implementation (Y) is classified as a related variable. The results obtained after this study's test indicate that ERP implementation (Y) is significantly influenced by the Management Control System (X1). There are several compromises in implementing an ERP (Enterprise Resource Planning) system in Indonesia. These factors exist in both the manufacturing and service industries. These have been identified as staffing issues where users do not understand how to use the ERP system. This lack of understanding leads to the implementation of non-optimized ERP due to the lack of education and learning about system usage and operational know-how. ERP is an evolution of Enterprise Resource Planning II (MRP II), a further development of Material Requirements Planning (MRP). ERP includes a warehouse management package as a first step, which is the supply control used in manufacturing or servicing products. The second phase of material requirements planning is the ERP route. In addition, the third phase of MRPII was the development of closed-loop MRP. ERP will emerge as Phase 4, an extension of MRP II and business processes. Extended ERP is the fifth phase of ERP, was introduced in 2000 and is much more complex than previous ERP.

Analytics capabilities and organizational competitiveness: Unveiling the impact of management control systems and environmental uncertainty

In this study, we investigated how management control systems (MCS) aid in translating analytics capabilities (AC) generated insights into enhanced organizational competitiveness under conditions of environmental uncertainty. The survey data from 405 manufacturing firms offers several unique contributions. First, it reveals that the link between AC and organizational competitiveness is not necessarily direct and may occur through MCS. Thus, it offers interesting insights concerning the mechanisms through which AC can generate value and competitiveness. Second, this study borrows from Simons' [58,59] levers of control (LoC) framework and offers a holistic and more in-depth understanding of the connections between AC, MCS, and organizational competitiveness. Third, by considering the nonlinear moderating role of environmental uncertainty, it offers a response to recent calls for research on the circumstances under which AC-generated insights can lead to organizational competitiveness. It also provides a response to recent calls for further research on AC - MCS relationships. Fourth, the study draws on a dynamic capabilities perspective to analyze how MCS can help translate AC-generated insights into improved organizational competitiveness. While this perspective has proven its worth in the information systems literature, it has received less attention with regards to management control processes.

Impact of Management Control Systems on Sustainability of Agricultural Small and Medium Firms: Mediating Role of Corporate Social Responsibility (CSR) Practices

Purpose: The purpose of this paper is to determine the impact of management control systems such as self-control and organization’s norms on the sustainability of an organization with mediating role of corporate social responsibility (CSR) practices. The study focused on small and medium enterprises in the agricultural sector and how they can be sustainable by using these factors.
 Design/Methodology/Approach: This is a primary study based on quantitative data. The non-probability, convenience sampling is used. The research design includes hypotheses testing whether they are accepted or rejected. Data collection was done through closed-ended questionnaires with a Likert scale. The chosen sample size was 200 however, 184 questionnaires were received back after filling. Smart PLS was used for data analysis.
 Findings: Based on the analysis, all the hypotheses were accepted which show that there is indeed an impact of management control systems and organizations norms on an organization’s sustainability and CSR practices play the role of mediator.
 Implications/Originality/Value: Originality this study is testing the mediating effect of CSR practices on control systems, organizations norms and sustainability of the firm in the agricultural sector of Pakistan where small and medium enterprises related to the agricultural sector are targeted. There are very few researches that focused on SME’S in the agricultural sector of Pakistan, this study provided a detailed insight into this sector. The study will be of great value to agricultural and SME’s owners on how they can create sustainability in their firm.

Adoption of management control systems and performance in public sector organizations

Public sector organizations have the responsibility to provide public services, while having to deal with a dynamic and turbulent environment and budget constraints. The pressure to innovate and improve performance has led these organizations to look for more effective management methods and tools. Management Control Systems (MCS) have been used to improve organizations’ performance and previous studies show their relevance in private and non-profit sectors, but there is a gap in the literature concerning the adoption of MCS in the public sector. This work aims to study the adoption and impact of MCS in a sample of public organizations. Based on fsQCA, our study shows how MCS are associated with the accomplishment of organizational objectives. These results contribute to the ongoing academic debate on MCS in the public sector, while being useful for top managers in public sector organizations aiming to improve the performance through the implementation of MCS packages.

The impact of management control systems on decision-making quality throughout the innovation process. An empirical analysis

The impact of management control systems on decision-making quality throughout the innovation process. An empirical analysis

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

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.

The impact of management control systems on organisational change and performance in the public sector

PurposeThis study aims to examine the role of organisational dynamic capabilities (strategic flexibility and employee empowerment) in mediating the relationship between management control systems (MCSs), in particular the interactive and diagnostic approaches to using controls, with organisational change and performance.Design/methodology/approachData were collected based on a mail survey of public sector organisations in Australia and analysed using structural equation modelling (SEM).FindingsThe findings indicate that strategic flexibility and employee empowerment mediate the association between the interactive approach to MCSs with organisational performance, and strategic flexibility mediates the relationship between the interactive approach to MCSs with organisational change.Practical implicationsThe study’s findings inform public sector practitioners as to how to enact change within and enhance the performance of public sector organisations. Specifically, managers are advised to focus on the use of interactive controls and the development of two dynamic organisational capabilities, strategic flexibility and employee empowerment.Originality/valueThe study provides an initial empirical insight into the relation between controls and dynamic capabilities and their role in enacting change and performance within the public sector. The findings suggest that the achievement of new public management ideals is reliant upon the organisational environment, with change and performance facilitated by the interactive use of controls and strategic flexibility and employee empowerment.

Policy Interventions to Contemporary Challenges and the Performance of Insurance Companies in Kenya a Case Study of Jubilee Insurance Company

The article sought to review the contemporary challenges and their policy interventions in the Kenyan insurance industry in terms of the external and internal challenges affecting the insurance business and which require leadership and managerial actions. The researcher reviewed the contemporary challenges and the performance of insurance companies in Kenya by looking at the external business environmental challenges and how they affect the management of Insurance companies. Secondly, the study considered how Kenyan insurance companies adapt and adjust their internal practices and processes to satisfy the changing customer expectations. The article goes further to review the critical policy issues which are required to address: changing consumer dynamics, enforce strict compliance with the stringent regulations, constant product innovations, and greater need for communication, technological disruptions, on-demand marketplace, and compensation. Using peer-reviewed literature and the published integrated annual reports of Jubilee Insurance Company Ltd; the study discussed and highlighted the policy interventions in relation to the demands of business and customers. Using Jubilee Insurance as a model insurance company in a case study, the researcher found that by combining performance driven behaviour and regular use of management control systems, Insurance Companies were able to post improved results. The Choice of Jubilee was driven by its size and stability among the Kenyan insurance companies. Jubilee has adopted an integrated reporting system which enabled the researcher to obtain the empirical information required from a secondary source. The researcher reviewed the data from the company’s integrated annual reports for the ten years from 2007 to 2017. The study looked at the control systems, including informal and formal controls and subjected these controls to a more comprehensive analysis to establish the impact of management control systems and strategy on the insurance company performance. The study suggested further empirical research to find the linkage between the policy interventions to various challenges and the performance of the insurance companies in Kenya.

THE IMPACT OF MANAGEMENT CONTROL SYSTEMS (MCS) ON ORGANIZATIONS PERFORMANCE A LITERATURE REVIEW

The impact of management control systems (MCS) on organizations performance empirical research has been the subject of numerous studies during the past decade in developed and emerging economies. In the contemporary competitive, complex and changing global business environment, firms are being challenged to adopt business models that enable them to address the strategic uncertainties and risks they face in their business environments. The main issue of this study is that management accounting researchers argue that one of the ways firms can continually rejuvenate themselves to survive and succeed in these complex and uncertain environments is to understand the role of management control systems in Formulating a business strategy in management control systems that yields a sustainable competitive advantage which in turn lead to enhance organizations performance. The purpose of this study is attempting to wading in the literature review related to The impact of management control systems on organizations performance based on 10 articles published in a wide variety of journals. 
 Discuss some methodological issues related to stage in the organizational life cycle and, finally, review the main results related to this topic and provide suggestions for future research Literatures indicate several factors that could possibly influence management control systems and organizations performance. It is worth highlighting the numerous factors as it is possible to conduct the proper orientation of influence of management control systems on performance.

Analysis of Impact of Management Control Systems (MCS) on Productivity and Approach to Determining Strength of MCS for Road PPP Projects

Expectations that public–private partnerships (PPPs) in roads will alleviate time overruns and enhance project productivity in India have not materialised. Substantial delays in tackling the attendant risks in the life cycle of the road PPP have occurred presumably because of weak management control systems (MCS) to mitigate risks. Very little research has been done on the influence of MCS on productivity. This article attempts to establish a relationship between MCS and project productivity. A strength index of MCS to serve as a strategic control mechanism is also presented.

Developing an Organizational Perspective to Management Accounting

B eing asked to make a short speech as part of accepting the award inevitably leads to some introspection and reflection on major factors that have influenced one’s career, be they events or individuals. Past recipients of the award have been very influential in putting management accounting on the map. Some have been instrumental in developing the way we think about management accounting and teach the subject; some have developed important perspectives such as information economics, combining economics with psychology, the importance of national culture, activity-based cost management, and balanced scorecards. The way these recipients developed their thoughts is well told in their acceptance speeches and collectively provides a wealth of ideas and a historical perspective on the development of our discipline. I commenced my studies in economics, and I maintain a keen interest in economic approaches to management accounting. However, early in my academic career, I was pressed into considering an organizational approach to management accounting, not because it was an easier option; rather it addressed the world of management accounting within which I found myself. In this address, I will share with you some personal reflections on the process of my discoveries in the area of organizational approaches to management accounting from the mid-1960s. The backdrop to this address is that research is something of a growth model. Stage 1: starting from a baseline of skills and knowledge gained at undergraduate studies; stage 2: progressing through refinement of skills with more graduate study; and stage 3: consolidating through work toward publications and other academic outputs. Stages 1 and 2 are somewhat planned and incremental, while stage 3 is more often associated with less ordered processes, often stumbling across potential research areas by way of reading and personal interactions. Research projects can be focused around existing ideas, sometimes being somewhat formulaic, sometimes highly innovative. Often ideas can be serendipitous and develop in unpredictable ways. The key is to recognize when there is a management accounting angle that will relate to an important organizational or social issue.

The Impact of Management Control Systems on Efficiency and Quality Performance —An Empirical Study of Taiwanese Correctional Institutions

Management control systems (MCS) have been widely suggested as a key framework with which organizations can increase the probability that people make decisions and take actions congruent with the entire goals of the organizations. Most of the previous studies have mainly focused on efficiency performance, and we have little knowledge of the impact of MCS on both quality and productivity performance. In this study, we use both non-parametric data envelopment analysis (DEA) and parametric stochastic frontier analysis (SFA) to examine how MCS affects efficiency and quality performance in correctional institutions. Our results show that correctional institutions in Taiwan have considerable technical inefficiency, which is attributable to their unfavorable resource usage. We also find that correctional institutions with tight MCS have higher efficiency and quality performance. Our overall results support the argument that tight control systems can be used to achieve efficiency and quality performance.

The impact of management control systems on knowledge processes – a behavioural perspective

Knowledge management and management control have been discussed separately in literature for many years. Although their research objectives intersect in some ways – Management Control Systems (MCS) handle a considerable part of a firm's relevant knowledge – they have not been linked explicitly. The objective of this paper is to foster research at this point of convergence. We present and use a tentative behavioural model for conceptually analysing the impact of MCS on knowledge and its transformation in organisations. The model puts individual decisions at the centre of these transformation processes. It considers the influence of individual abilities, needs, expectations and attitudes on knowledge processes and their interplay with MCS. Based on the model, we propose that MCS have considerable impact on an individual's knowledge processes and, hence, on the success of implementing knowledge management in firms. Therefore, our paper concludes with a call for more research into the intersection of management control and knowledge management.

The Impact of Management Control Systems - Strategy Interaction on Performance Management: A Case Study

The Impact of Management Control Systems - Strategy Interaction on Performance Management: A Case Study We study the interaction between management control systems and strategy its impact on organisational performance considering the way in which multiple aspects of control systems and dimensions of context combine in a variety of ways to enhance performance. Our purpose is to investigate the relationship among management control systems, strategy and organisational performance in a particular company. The contribution of this study is that it upgrades the existing theory in that it does not only establish a relationship between strategy and management control systems, but also considers how this relationships impacts on organisational performance. The study shows that the combination of performance-driven behaviour and regular use of management control systems leads to improved results. The second contribution of the study is that it incorporates a wider range of controls, including informal controls as being equally important as formal controls, to provide a more comprehensive analysis, as opposed to the majority of prior studies focusing on a more limited range of controls. In this way, this paper contributes to the literature in terms of examination of the broader components of management control systems than was previously done.

Impact of Management Control Systems' Intensity of Use on Joint Venture's Performance: An Empirical Assessment

Studies of the impact of control on joint venture (JV) performance showed non-convergent results (Beamish and Banks, 1987; Boateng and Glaister, 2002; Pangakar and Klein, 2004). This paper contributes to the discussion of management control systems in international JVs (Groot and Merchant, 2000). To answer if intensity of use of management control systems play a role in perceived JV performance, I used a contingent model to test data from 65 JVs in the motor and auto parts industry. The impact on management control systems of some factors varies due to the role that each partner plays in the JV that is shaped by the assets committed. Considering that most of the JVs in this industry are formed by a foreign company coupled with a local firm, it is reasonable to observe that the larger the technological or the local market experience of the JV foreign and local partners respectively, the more intensely the information is used to manage the JV. High performers use management control systems more intensively to overcome the two main sources of uncertainty faced by the JV: local market conditions and product/process technology. Searching for alternative explanations of JV performance it was found that the better the performance the more the partners' trust and cultural fit (Das and Teng, 2001), however the results of partners strategic fit was not conclusive. These findings justify the assertion that management control systems are used to give transparency to JV operations and JV management team decisions, reinforcing the initial trust between the partners, and between them and the JV management team (Choi & Beamish, 2004; Inkpen & Curral, 2004). In summary this paper identifies three uncertainty reduction mechanisms that work in international equity JVs to improve its performance: management control system, trust and partners cultural fit.