Management control systems as inter-organizational trust builders in evolving relationships: Evidence from a longitudinal case study

2008 ◽  
Vol 33 (7-8) ◽  
pp. 968-994 ◽  
Author(s):  
Maria L. Vélez ◽  
José M. Sánchez ◽  
Concha Álvarez-Dardet
Keyword(s):  
Control Systems ◽  
Organizational Trust ◽  
Management Control ◽  
Management Control Systems ◽  
Longitudinal Case Study

How management control systems enable and constrain integrated thinking

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ruth Dimes ◽  
Charl de Villiers
Keyword(s):  
Decision Making ◽  
Control Systems ◽  
Economic Benefits ◽  
Management Control ◽  
Management Control Systems ◽  
Practical Implementation ◽  
Successful Implementation ◽  
Content Type ◽  
Perceived Trust

Purpose This paper aims to examine how management control systems (MCS) can enable and constrain the successful adoption of integrated thinking in an organisation. Design/methodology/approach The study adopts a case study approach, involving in-depth interviews and documentary evidence. Findings The case study organisation perceived trust to be critical to the successful adoption of integrated thinking, and informal social controls with strong endorsement from senior management frequently substituted for more formal technical controls in helping to develop a trust-based organisational culture. These cultural changes improved collaboration and brought economic benefits by encouraging outcome-based decision-making rather than capital-based decision-making, thereby enabling employees to identify and address poorly performing projects earlier. However, established performance measurement systems geared towards reporting and rewarding accounting profits created tension, constraining the potential benefits of integrated thinking by reinforcing business unit protectionism. Practical implications Integrated thinking can be seen as a form of management with the potential to improve organisational outcomes. An improved understanding of factors that might enable or constrain integrated thinking could facilitate its spread. Originality/value Despite several calls for research on the practical implementation of integrated thinking, this has not been studied extensively. To the best of the authors’ knowledge, this study is one of the firsts to contribute to a better understanding of the role of MCS in the successful implementation of integrated thinking in an organisation. The study also contributes to the MCS literature.

Sustainability reporting integrated into management control systems

2015 ◽  
Vol 27 (2) ◽  
pp. 189-207 ◽  
Author(s):  
Jennifer Kerr ◽  
Paul Rouse ◽  
Charl de Villiers
Keyword(s):  
Control Systems ◽  
Balanced Scorecard ◽  
Sustainability Reporting ◽  
Management Control ◽  
Management Control Systems ◽  
Management Control System ◽  
Content Type ◽  
The Balanced Scorecard ◽  
External Reporting

Purpose – This paper aims to examine how three different organisations integrate sustainability reporting into management control systems (MCS). Design/methodology/approach – A case study examination of sustainability reporting integrated into MCS in three New Zealand organisations. Findings – The integration of sustainability reporting into MCS holds advantages for organisations to operationalise sustainability objectives, broaden stakeholder accountability as well as intensify interactions with stakeholders, formalise organisation beliefs and improve communication of sustainability measures internally. While frameworks such as the balanced scorecard (BSC) can facilitate implementation of sustainability reporting, some organisations may choose to fully integrate the latter into their management control system. Originality/value – Sustainability reporting is sometimes seen as an external reporting philosophy that can be managed as a separate project. The authors show it can be integrated into MCS, either entirely or through tools such as the BSC. The authors develop a framework that may be useful in future studies to locate our case organisations.

scholarly journals MANAGEMENT CONTROL SYSTEMS: COMPARATIVE CASE STUDY IN BRAZILIAN INNOVATIVES COMPANIES

2010 ◽  
pp. 21-34
Author(s):  
José Carlos Tiomatsu Oyadomari ◽  
Ricardo Lopes Cardoso ◽  
Bruna Oliveira Tavares da Silva
Keyword(s):  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Comparative Case Study

Institutional entrepreneurship and management control systems

2016 ◽  
Vol 28 (4) ◽  
pp. 458-470 ◽  
Author(s):  
Ann Martin-Sardesai
Keyword(s):  
Control Systems ◽  
Research Study ◽  
Management Control ◽  
Management Control Systems ◽  
Research Assessment ◽  
Institutional Entrepreneurship ◽  
Content Type ◽  
Institutional Entrepreneurs ◽  
Institutional Entrepreneur

Purpose This study aims to explore how management control systems (MCS) compliment institutional entrepreneurship. It provides a case illustration of how the Vice Chancellor (VC) as an institutional entrepreneur used MCS to bring about a change in an Australian public sector university in anticipation of an externally imposed research assessment exercise. Design/methodology/approach This case study gathered qualitative data through key informant interviews (including deputy VCs, research managers, executive deans and heads of departments) and a review of university and other electronic policy-related documents. Findings The study contributes to an understanding of the external environment that drives university leaders to become institutional entrepreneurs, and what they precisely do to facilitate the internal dynamic change in line with political demands. Research limitations/implications Being a single case study, care should be taken in generalizing the findings. However, it raises significant issues that deserve further attention, for example, the impact of change on the working life of academics. Practical implications The research study identifies the proposed imposition of a research assessment exercise as an enabling condition under which an institutional entrepreneur could promote and activate a new vision. It provides useful insights for other universities operating in the rapidly changing environment. Originality/value In identifying the way institutional entrepreneurs bring about change by promoting a vision and operationalizing it through MCS, the research study extends literature on institutional entrepreneurship MCS and organizational change.

scholarly journals The Influence of Integrated Reporting on Management Control Systems: A Case Study

2018 ◽  
Vol 13 (7) ◽  
pp. 19 ◽  
Author(s):  
Maria Serena Chiucchi ◽  
Marco Montemari ◽  
Marco Gatti
Keyword(s):  
Control System ◽  
Control Systems ◽  
Implementation Process ◽  
Case Analysis ◽  
Management Control ◽  
Management Control Systems ◽  
Company Performance ◽  
Integrated Reporting ◽  
Managerial Decision

The purpose of this paper is to investigate how Integrated Reporting can influence Management Control Systems (MCSs). To this aim, the paper presents a case study of a company which designed and implemented an Integrated Report (IR) that was used as a tool for communicating the company performance to the entrepreneur and as a tool for enriching the company MCS to visualize and measure the overall company performance. The case analysis shows that Integrated Reporting improves the measurement focus of the MCS thanks to the role played by the company’s Business Model (BM) throughout the IR development and to the process adopted to map the BM itself. The BM mapping process was highly iterative and allowed for a better understanding of the items affecting the value creation process and of their interconnections, thus directing the MCS to what really deserved to be measured. Strategic discussion around the BM also entailed an evolution of the control system, which became a strategic control system, able to support the discussion and the creation of new strategies. Moreover, the BM ensured a high level of integration and consistency between departmental reports and the company IR, on the one hand, and among the departmental reports themselves, on the other hand. In addition, the case analysis shows that financial indicators risk becoming “phagocytized” by non-financial ones and that the implementation process of the IR can lead to a heavier workload for the Management Control Department to provide for the non-financial aspects of performance. Finally, the case analysis shows that the Integrated Reporting visual representation and its underlying logic may not work if the tool is used for managerial decision making. While the guiding principles of Integrated Reporting were accepted by the company’s actors, the Integrated Reporting representation model based on the logic inputs-BM-outputs-outcomes was criticized as it was considered too complex and not able to represent the company’s integrated performance, reflecting instead a series of disconnected and disjointed individual performances. The critiques of this model were so sharp that they resulted in a change to its logic and the adoption of a different model, namely that of cause-and-effect relationships.

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