Management Control Practices Research Articles

Digital Revolution and Management Control Practices: The Impact of Digitalization in Moroccan Private Companies

This paper aims to investigate how digitalization activity influences the management control practices of Moroccan private enterprises. With technologies developing daily, organizations are grappling with how best to utilize these technologies in their MCs, thus the need for development. The main research question of this paper is therefore to: Examine the impact that digital transformation brings to the decision making, performance measurement and resource allocation in private firms in Morocco. To this end, the current study used both survey and interview questionnaires with managers drawn from different sectors and industries. These results therefore indicate that digitalization indeed increases the level of transparency and flow of daily monitoring information required in the management practices to increase its operational efficiency and overall strategic flexibility. That being said, the study also outlines some of the problematic areas like, resistance to change, training employees to learn how to deal with new tools. In conclusion, thus, despite the opportunities that the new digital reality opens to the approach and development of the management control systems in Moroccan private companies, this new reality poses a number of challenges which have to be met to improve the opportunities fully. The study adds to the current body of knowledge regarding digitalization of operations and the impact it has on managerial processes and provides recommendations to those practitioners seeking to enhance their effectiveness within the context of digitally enabled business environment.

Constructing and co-authoring controller’s practice through cloud technologies: the case of IKEA Italy

Purpose The purpose of this paper is to explore how the controller’s practice is constructed through the use of cloud technologies. Thus, the authors explore the possibilities that cloud technologies offer and how, through these technologies, actors can co-author a process that leads them to relate themselves to the world. Design/methodology/approach The authors adopt pragmatic constructivism to investigate the construction of the controller’s practice through cloud technologies. Drilling down to a single case study, they chose two IKEA stores in Italy to ascertain, through interviews, how the controller’s practice has changed since switching to a cloud-based information management platform. Findings This case evidence sheds light on how cloud technologies help to construct the controller’s practice. Managers' interactions are now partly governed and partly supported by information in the cloud. Workers can collect and share data, promoting knowledge production at a range of organisational levels. Originality/value This paper contributes to studies on the hybrid nature of management control practice. The authors underline how using cloud technologies helps to construct controller’s practice. More specifically, using cloud technologies allows the controller to orchestrate a co-authoring process through which managers integrate facts, possibilities, values and communication to form a functioning construct causality. Overall, the result is better support for decision-making.

Performance measurement systems in an era of complexity, uncertainty and grand challenges

The current uncertain and emergency environment is challenging business man-agement like never before. Companies are called to face many complex and wicked problems affecting society on a global scale. Climate change, global pan-demics, social inequalities, war conflicts, digital transformation, and energy supply shortages are only a few of the critical issues companies must deal with daily. Per-formance measurement systems and management control practices can have a key role in addressing such a turbulent environment. Accordingly, the literature has recently started investigating their role in supporting companies facing societal "Grand Challenges". The scientific debate on this topic is intense but still in its in-fancy leaving open wide research areas that need to be further explored and inves-tigated. The articles included in this volume fuel the ongoing debate by analysing the role of performance measurement systems and management control tools in several contexts and under uncertain and emergency conditions.

Drivers and evolution of acaricide resistance and multi-resistance in two Ecuador's subtropical livestock farming areas.

The management of cattle ticks, particularly Rhipicephalus microplus, poses a global challenge in subtropical regions like Ecuador due to its impact on meat and milk productivity, leading to economic losses. Misuse of acaricides has resulted in resistance and multi-resistance, diminishing their effectiveness. This study evaluated resistance to amitraz, alpha-cypermethrin, and ivermectin using the Larval Packet test, laboratory-reared tick larvae collected from cattle were tested. Data on farm management and tick control practices were gathered via a questionnaire in Northwest Pichincha and Quijos River Valley over two years. Resistance rates in the first year (2020-2021) were 67.21% for amitraz, 57.38% for ivermectin, and 67.21% for alpha-cypermethrin. One year later (2021-2022), resistance levels were 59.57% for amitraz, 57.45% for ivermectin, and 68.09% for alpha-cypermethrin, with multi-resistance rates at 67.21% and 65.96% respectively. No significant differences were found between years or locations. Analysis of larval survival data determined lethal doses for tested acaricides. The study emphasizes the association between the lack of acaricide rotation, the incorrect dosage, and the absence of non-chemical measures in tick management could be associated with the development of resistances in ticks. Likewise, this study promotes the need for collaborative efforts to improve control practices and maintain acaricide efficacy.

Management control practices for the sustainability transformation in the European construction industry

PurposeWhile research on sustainability reporting in the construction industry has already provided comprehensive findings, the purpose of this paper is to answer the question of how construction companies anchor the topic of sustainability in their strategic and operative management control practices. The implementation of sustainable business models and sustainability strategies requires proper management control instruments or mechanisms that support the transformation process or make it possible in the first place.Design/methodology/approachA qualitative content analysis based on deductive and inductive procedures was conducted. 39 sustainability reports published by the largest construction companies in the EU were examined.FindingsValuable insights are provided by showing which control instruments and mechanisms are used to improve corporate sustainability performance as well as how these are linked systematically. The results show that the focus is on strategic planning, cultural and administrative controls, while short-term targets, which could set out the path to achieving the long-term sustainability goals set, are often not reported. Strategic stakeholder theory and legitimacy theory provide explanations for the use of management control practices identified.Originality/valuePrevious studies often focus on selected single control practices and miss holistic approaches for investigating corporate sustainability in construction companies. Furthermore, theoretical perspectives with instrumental and socio/political views on corporate sustainability help us explain the control practices applied. Moreover, practitioners, standard setters and legislators can use the findings for sustainability management or for developing standards and legislation.

Determining the Effect of Nutrient Management and Weed Control Practices on Weed Dynamics in Wheat (Triticum aestivum L.)

An experiment was carried out at Agronomy Research Farm of Acharya Narendra Deva University of Agriculture and Technology, Kumarganj, Ayodhya (Uttar Pradesh) during Rabi season (2022-23 & 2023-24) to investigate the effect of nutrient management and weed control practices on dynamics of weed in different treatments in wheat crop. Split plot design was used in the experimental field with three nutrient levels in main plot and six weed control practices in sup plot and replicated thrice. Among the nutrient management treatments 75% RDF + 10 t ha-1 FYM + one spray of nano-urea @ 4ml/lit was found to be more effective for controlling weed density, weed dry weight, weed control efficiency (%), and weed index (%) during both years of experimentation. Sequential spray of Clodinofop + Metsulfuron (60 + 4 g a.i. ha-1) reduced the density and dry weight of weeds, however recorded highest weed control efficiency (89.57% & 90.77%) and minimum weed index (1.99 & 1.96) during 2022-23 and 2023-24 respectively. The better control of weeds and higher uptake of nutrient in this treatment resulted in higher yield. Thus it might be concluded that application of 75% RDF +10 t ha-1 FYM + one spray of nano-urea @ 4ml/lit with the spraying of Clodinofop + Metsulfuron (60 + 4 g a.i. ha-1) found to be more effective in reducing weed infestation in wheat crop.

The commercialisation of microfinance: deploying management control to address institutional complexity

PurposeThe study aimed to examine the transformation of a non-profit microfinance institution (MFI) into a hybrid social enterprise, and the role of formal and informal controls in reconciling the discordance between the two conflicting (social and commercial) objectives that emerged due to the transformation.Design/methodology/approachA case study of a non-governmental MFI located in Southeast Asian country was conducted. This case study drew on the institutional logics perspective as an analytical tool to understand the complexity of change and the mobilisation of management control practices to align two conflicting goals at the core of the MFI’s organisational strategies. This study adopted the interpretive approach and relied on multiple data sources, including semi-structured interviews and documentary evidence.FindingsThe application of commercial principles in the operations of the MFI occurred in several phases. First, the MFI changed from a non-profit business model to a hybrid social enterprise, which pursued a double bottom-line strategy. The informal control practices inherent in the organisation’s culture created a high level of social awareness embedded within a social logic. In contrast, the formal control practices were directly linked to the new commercial logic. The synergy between the two logics was optimised by reinforcing formal and informal control practices.Originality/valueThis study offers insights into the role of control systems in reconciling the discordance between competing social and financial objectives within a non-governmental MFI that enjoys substantial financial and nonfinancial support from the government.

Trust, and high control: an exploratory study of Counterproductive Work Behaviour in a high security organization

ABSTRACT High security organizations utilize a fine balance between control and trust to maintain stability. Drawing on qualitative interviews with managers and employees concerning three Counterproductive Work Behaviour (CWB) incidents occurring within a “high control” organization, we explore the impact of this trust-control dynamic on individuals’ sensemaking, social relations and workplace behaviours. We explore Human Resource Management (HRM) control practices, contrasting levels of control (over and under-control), form (formal and informal), and consistency of control management, that variously destabilize the balance of trust and control. Framed by this dynamic, employees undertake CWB as a means of maintaining their trusting relationships, professional goals and well-being in an unpredictable workplace. We demonstrate the value of understanding the trust-control dynamic for CWB and identify potential lessons for prevention.

Conceptual Model of The Role of Territorial Management Controller and Good Governance

Purpose: This literature review aims to explore the intersection of management control and good governance at the local level, specifically within territorial authorities. The central purpose is to understand how management control can act as a strategic tool to enhance transparency, efficiency, and accountability in local governance. Method/design/approach: Methodologically, the review involves a comprehensive exploration of academic databases to identify relevant articles, theses, and books on the subject. The synthesis of findings encompasses historical perspectives, theoretical frameworks, and empirical studies, providing a holistic overview of the complex relationship between management control and local governance. Results and conclusion: The review synthesizes findings that reveal the multifaceted nature of good governance, the historical evolution of governance concepts, and the intricate link between management control and organizational strategy. It highlights the various responsibilities of territorial management controllers, encompassing decision support, education, and mediation functions. Research implications: The review suggests future research directions and underscores the practical importance of adapting private sector tools to the public sector while considering the specificities of territorial governance. Socially, effective management control practices are seen as potential enhancers of citizen satisfaction, transparency, and accountability in local governance. Originality/value: The originality and value of the literature review lie in its comprehensive exploration of historical governance evolution, the conceptualization of good governance, and the integration of management control into the public sector. It provides a rich framework for studying their interaction in territorial communities, offering insights that can inform both research and practical applications in local governance.

The Effects of Surrounding Factors on Building Health in Urban Neighbourhood

Abstract: Urbanization has become an increasingly important factor in the lifespan of buildings. As the population in urban areas continues to grow, many buildings fail to reach their expected life expectancy of 50-60 years due to multiple factors. In addition to poor construction, climate, architecture plan and design, material quality, human errors, health monitoring, geological conditions, and natural disasters can all adversely affect the building health. This paper examines the connection of urbanization and the deterioration of buildings and explores the various components contributing in the construction and postconstruction stages. It also discusses the various factors that impact building health and whether it measures the impact on buildings. Lastly, it examines the climate impact on buildings and the measures that can be taken while designing and postconstruction. The paper concludes that city development directly impacts the speed of building deterioration. To keep buildings healthy and sustainable, it is important to contemplate all the factors that can influence the building health and to measure the impact of these factors, incorporate project management and quality control practices into architectural design and implementation, and to take steps to mitigate the effects of climate change. By doing so, urban infrastructure-building life spans can be extended, and buildings can be kept in good condition for longer periods of time.

Exploring fuzzy AHP approaches for quality management control practices in public building construction projects

Exploring fuzzy AHP approaches for quality management control practices in public building construction projects

Cloud computing-based banking and management control

It is well known that firms nowadays operate in a VUCA (volatile, uncertain, complex and ambiguous) environment urging them to obtain a lasting competitive advantage sourced mainly from a technological innovation in order to ensure their prosperity and sustainability. New technologies play a pivotal role as they offer the potential of increasing efficiency, improving communication, streamlining business processes for more productivity and collaboration, from this perspective, cloud computing is a state-of-the-art technology that can provide valuable insights and support decision-making. It can have a significant impact on how businesses operate and compete in today’s fast paced and ever-changing business environment which makes it a source of competitive advantage, yet it raises concerns over data security and cybersecurity as well as it alters the day-to-day operational tasks arising from management control practices. In this paper we briefly review the literature in order to address and examine the impact of cloud computing technology in the banking sector on management control.

The impact of management control on the performance of large distribution companies in Morocco

This study investigates the impact of management control on the managerial performance of large-scale retail companies in Morocco, addressing a research gap in the local literature. Despite the considerable growth of the Moroccan retail sector, there is limited research on management control practices within this context. The research focuses on the implementation and effects of management control systems in the Moroccan retail industry, specifically examining their contribution to enhancing managerial performance. Adopting a multidisciplinary approach drawing from management control, performance management, and the retail industry, the study centers on the case of Label'vie Group. Through empirical research, the aim is to elucidate how effective management control practices positively influence the managerial performance of Moroccan retail businesses. Anticipated findings are expected to offer valuable insights for scholars and industry professionals in the management control field, particularly in emerging economies like Morocco. Furthermore, this research addresses the literature gap in the Moroccan business landscape, highlighting the importance of understanding and implementing management control mechanisms in the dynamic realm of retail. The structured abstract aligns with the journal's requirements and provides a clear framework for readers to comprehend the purpose, methodology, expected findings, and practical implications of the study.

Association between a genetic index for digital dermatitis resistance and the presence of digital dermatitis, heel horn erosion, and interdigital hyperplasia in Holstein cows

Digital dermatitis (DD) is a polybacterial disease endemic to most UK dairy farms. It poses a major financial and welfare threat and is characterized by high incidence and recurrence rates. We aimed to investigate the association between the UK EBV for resistance to digital dermatitis, the digital dermatitis index (DDI), and the frequency of DD, heel horn erosion (HHE), and interdigital hyperplasia (IH) in a population of Holstein dairy cows. We enrolled and genotyped 2,352 cows from 4 farms in a prospective cohort study. Foot lesion records were recorded by veterinary surgeons for each animal at 4 time points during a production cycle, starting at approximately 2 mo before calving and ending in late lactation. Importantly, these records were not used in the calculation of the DDI. Lesion records were matched to the animal's own DDI (n = 2,101) and their sire's DDI (n = 1,812). Digital dermatitis index values in our study population ranged from -1.41 to +1.2 and were transformed to represent distance from the mean expressed in SD. The relationship between the DDI and the presence of DD was investigated using a logistic regression model, with farm, parity, and a farm-parity interaction fitted as covariates. A multivariable logistic regression model was fitted to evaluate the relationship between HHE and DDI with farm fitted as a covariate. Finally, a univariable logistic regression model with DDI as explanatory variable was used to investigate the relationship between IH and DDI. The odds ratio of an animal being affected by DD was 0.69 for 1 SD increase in the animal's DDI (95% CI = 0.63-0.76). The odds of HHE and IH were 0.69 (95% CI = 0.62-0.76) and 0.58 (95% CI = 0.49-0.68) respectively for 1 SD increase in DDI. The adjusted probability of DD was 32% (95% CI = 27-36%) for cows with mean DDI value of 0, while it was 24% (95% CI = 20-29%) in cows with a DDI value of +1. Sire DDI breeding values were standardized in the same way and then binned into terciles creating an ordinal variable representing bulls of high, medium, and low genetic merit for DD resistance. The daughters of low genetic merit bulls were at 2.05 (95% CI = 1.60-2.64), 1.96 (95% CI = 1.53-2.50), and 2.85 (95% CI = 1.64-5.16) times greater odds of being affected by DD, HHE, and IH, respectively, compared with the daughters of high genetic merit bulls. The results of this study highlight the potential of digital dermatitis genetic indexes to aid herd management of DD, and suggest that breeding for resistance to DD, alongside environmental and management control practices, could reduce the prevalence of the disease.

Towards an institutional understanding of risk-based management controls: evidence from a developing market

PurposeIn developing countries, how risk management technologies influence management accounting and control (MAC) practices is under-researched. By drawing on insights from institutional studies, this study aims to examine the multiple institutional pressures surrounding an entity and influencing its risk-based management control (RBC) system – that is, how RBC appears in an emerging market attributed to institutional multiplicity.Design/methodology/approachThe authors used qualitative case study research methods to collect empirical evidence from a privately owned Egyptian insurance company.FindingsThe authors observed that in the transformation to risk-based controls, especially in socio-political settings such as Egypt, changes in MAC systems were consistent with the shifts in the institutional context. Along with changes in the institutional environment, the case company sought to configure its MAC system to be more risk-based to achieve its strategic goals effectively and maintain its sustainability.Originality/valueThis research provides a fuller view of risk-based management controls based on the social, professional and political perspectives central to the examined institutional environment. Moreover, unlike early studies that reported resistance to RBC, this case reveals the institutional dynamics contributing to the successful implementation of RBC in an emerging market.

Greening Austrian social service and healthcare non-profits

The climate crisis requires the systematic integration of environmental matters into the management practices of companies across all sectors. The 2022 Corporate Sustainability Reporting Directive (CSRD) has created a need in many large social service and healthcare non-profits (SSHC–NPOs) within the European Union to extend the integration of environmental matters by 2025. While there is plenty of research on environment management practices of large for-profit enterprises, the research on environmental matters in SSHC-NPOs, which gain their legitimacy from social value creation, has been neglected. This study examines how large Austrian SSHC-NPOs are preparing for the environmental requirements set by the CSRD. The integration of environmental considerations into their core strategy, sustainable management control practices, and non-financial reporting poses a significant challenge. To evaluate the status of integration of environmental matters, the paper uses two sequential stage models based on institutional theory. The study is based on data from interviews with 21 Austrian SSHC-NPOs. The findings reveal that the integration of environmental matters is at an early stage, driven by a pragmatic approach with a strong emphasis on social and financial concerns. Cultural controls take precedence in management control practices, while administrative and cybernetic controls lag behind. Environmental reporting does not meet CSRD requirements, and the studied SSHC-NPOs aim for minimal compliance only, when CSRD comes into force in 2025. Additionally, it highlights that these organizations do not conform to the sequential stages proposed by two institutionalist stage models, emphasizing the role of the SSHC sector's context in shaping their behavior and practices.

Information or pressure? The effect of director experience on CEO CSR compensation adoption and design

AbstractWe investigate the impact of director experience in integrating social responsibility criteria into CEO compensation (corporate social responsibility [CSR] contracting) in other firms on the adoption and design of CSR contracting within focal firms and address the question of whether such experience brings information or pressure to focal firms. Using hand‐collected data of a sample from the Standard and Poor's (S&P) 500 index, we find that director experience is positively associated with the likelihood of CSR contracting adoption. This effect is particularly pronounced in challenging situations where firms require more information for the adoption, such as when they have diverse stakeholders with varying CSR interests and operate in unpredictable market environments. Additionally, director experience has a positive effect on the use of quantitative CSR targets in initial contract design, especially in these challenging scenarios. Interestingly, the positive effect of director experience on CSR contracting adoption does not vary with firms’ peer legitimacy pressure. Our findings suggest that director CSR contracting experience provides valuable information that fosters learning rather than imposing institutional pressure that leads to isomorphism when firms make CSR contracting decisions. By disentangling the intertwined role of director experience, our research offers insights into how it influences the adoption and design of innovative management control practices within firms.

The Role of Performance Budgeting in Developing Management Control in Universities: Evidence from Morocco

Under the combined effect of performance budget reforms and reforms of the higher education sector, universities face a set of constraints but also opportunities. More than ever, they are called upon to engage in strategic thinking and to set up performance reporting mechanisms that promote a new governance style called “the entrepreneurial university”. Management control is the most suitable tool for ensuring consistency of actions towards the objectives pursued. In this paper, we tried to shed light on the role of budgetary reforms in the development of management control in universities. for this we have chosen to conduct a case study which will make it possible to detect the relationship between the performance budgeting devices and the development of management control in Moroccan universities. Results shows that results based budgeting has an important role on the development of management control in universities. Nevertheless, management control practices remain in an embryonic state and should be improved by university’s responsible.

Budgeting And Emotional Exhaustion In Covid-19 Pandemic: Survey From Indonesia

Management control practices will change in response to the global crisis. This study aims to investigate the behavioural impacts of adjustments in budget control brought on by the worldwide crisis, particularly during the transition to the COVID-19 pandemic. This quantitative study employs a questionnaire survey approach with a sample of 96 managers from West Java manufacturing enterprises. The results of the study show that the negative impact of the Covid-19 pandemic transition period is positively related to budget tightening, tightening budget control is positively associated with role conflict, enabling budget design can reduce the impact of budgetary tightness on role conflict, and role conflict is positively related to emotional exhaustion of budget holders. This study contributes to the body of knowledge on management control, particularly the budget, which sheds further light on how budgeting procedures change in times of crisis and what happens to employees as a result of those changes.

An experimental study on the effect of penalties on employers' trust and employees' reciprocity and the moderating effect of communication

PurposeThere is growing scholarly interest in the use of penalty in employment contracts which reduce employees' pay if the employee's performance does not meet a pre-specified performance threshold. Prior accounting research has focused exclusively on the effect of penalty on employee performance. In this study, the authors extend earlier research by examining how penalty affects the employers' wage offers. Prior research suggests that employers' generous wage offers in employment contracts are normally translated as trust by employees who in turn reciprocate with higher effort. The authors present a theory that predicts penalty reduces employers' wage offers. Then, the authors propose unrestricted communication between employers and employees as a potential moderator for the negative effect of penalty on trust and reciprocity.Design/methodology/approachThe authors implement a controlled lab experiment with a 2 × 3 experimental design (Penalty: Present and Absent; and Communication: None, One-Way and Two-Way).FindingsThe authors develop their predictions by utilizing insights from motivational-crowding and organizational communication theories. The authors hypothesize and find evidence that employers' ability to penalize employees can reduce employers' motivation to offer generous wages. As a result, reduced trust demotivates employees to provide high effort. However, the authors find that a two-way communication moderates the negative effect of penalties by restoring trust, thereby, increasing reciprocity. Finally, the authors find evidence that relationship-oriented messages explain the moderating effect of communication.Research limitations/implicationsThis study is subject to limitations inherent in all experimental studies. The decisions in the study experiment are less complex than those found in practice. Moreover, there are significantly higher costs and potential benefits to shirk on effort in practice. The authors encourage future research on other organizational features that would influence the generalizability of their theory and results. Nonetheless, this study makes an important contribution to the literature on trust, reciprocity, gift-exchange contracts, managerial controls and communication.Practical implicationsThis paper has several important implications for theory and practice. The authors show that the presence of penalty may not automatically result in increasing employees' effort level, contrary to traditional economic theory predictions. This effect is driven mainly by the crowding out effect of a penalty on employers' desire to signal trust. Therefore, the presence of an open communication channel may become an important tool to reverse the psychological effect of reduced trust when penalty is present. Therefore, the study's findings contribute to the trust–reciprocity literature on how management control system influences employers' and employees' behavior. These findings are especially germane given the trend in the workplace toward establishing open communication at different levels within the firm hierarchy. The study also contributes to the literature on trust–reciprocity as critical informal controls and social norms in accounting practices (Bicchieri, 2006; Stevens, 2019), shedding light on how firms may influence employees' reciprocity in management control practices and induce them to act in line with the firm's objectives by opening communication channels.Originality/valuePrior accounting research document that penalty in employment contracts increases employee performance due to loss aversion. The study, however, demonstrates that the positive effect of penalty is not sustained in a gift-exchange contract. Specifically, the study's experimental results provide evidence that the availability of penalties can psychologically change the way employers perceive their decisions on offering generous wages (i.e. trust) and consequently reduce employees' reciprocation of high effort levels. Yet, the authors propose a two-way communication as a restorative mechanism for the lost trust. Implications for theory and practice are discussed.