The relationship between management control system usage and planned change achievement: An exploratory study

Manuscript type: Research paper Research aims: This study aims to examine the relationship between the formal management control system (MCS) on organisational performance and innovation. It also evaluates the role of leadership characteristics as the moderating variable between MCS and innovation. Design/Methodology/Approach: This study employs a survey questionnaire, and data collected from business units of Indonesian manufacturing and services firms. The warp partial least squares structural equation modeling (PLS-SEM) approach was employed to analyse the data and test the proposed model. Research findings: The findings demonstrate that: (1) A welldesigned formal MCS can improve organisational performance and innovation; (2) managers with good characteristics such as showing good behaviour through compliance with company rules, involving themselves in subordinates’ activities, and supporting subordinates’ ideas, can improve subordinates’ creativity in producing innovation. Theoretical contribution/Originality: This study expands the existing literature by examining the role of leadership characteristics as a moderating variable between the formal management control system (MCS) and innovation. Practitioner/Policy implications: The findings of this study demonstrate that, for Indonesian firms to compete in globally-competitive markets, they need to implement well-designed formal MCS. For formal MCS to contribute to innovation, managers who demonstrate good leadership characteristics are crucial. Research limitation/Implications: Future research can investigate comparative analyses of different ASEAN countries since different Asian countries have different dominant cultures and values, which may have some impact on MCS, organisational performance and innovation. It may also consider how different types of MCS improve organisational performance and innovation performance.

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The Mediating Role of Management Control System in the Relationship between Corporate Governance and the Performance of Bailed-out Banks in Nigeria

Procedia - Social and Behavioral Sciences ◽

10.1016/j.sbspro.2014.11.154 ◽

2014 ◽

Vol 164 ◽

pp. 613-620

Author(s):

Nuraddeen Shehu Aliyu ◽

Che Zuriana Muhammad Jamil ◽

Rapiah Mohamed

Keyword(s):

Corporate Governance ◽

Control System ◽

Management Control ◽

Management Control System ◽

Mediating Role ◽

The Relationship

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Interactive Control System, Intended Strategy, Implemented Strategy dan Emergent Strategy

The Winners ◽

10.21512/tw.v13i2.655 ◽

2012 ◽

Vol 13 (2) ◽

pp. 93

Author(s):

Tubagus Ismail ◽

Darjat Sudrajat

Keyword(s):

Control System ◽

Significant Influence ◽

Structural Equation ◽

Management Control ◽

Equation Modeling ◽

Strategy Formation ◽

Management Control System ◽

Interactive Control ◽

Emergent Strategy ◽

The Relationship

The purpose of this study was to examine the relationship between management control system (MCS) and strategy formation processes, namely: intended strategy, emergent strategy and impelemented strategy. The focus of MCS in this study was interactive control system. The study was based on Structural Equation Modeling (SEM) as its multivariate analyses instrument. The samples were upper middle managers of manufacturing company in Banten Province, DKI Jakarta Province and West Java Province. AMOS Software 16 program is used as an additional instrument to resolve the problem in SEM modeling. The study found that interactive control system brought a positive and significant influence on Intended strategy; interactive control system brought a positive and significant influence on implemented strategy; interactive control system brought a positive and significant influence on emergent strategy. The limitation of this study is that our empirical model only used one way relationship between the process of strategy formation and interactive control system.

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Effects of using the management control system on individual performance with the intervenience of feedforward and organizational learning

Journal of Knowledge Management ◽

10.1108/jkm-01-2021-0055 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Ilse Maria Beuren ◽

Vanderlei dos Santos ◽

Daniele Cristina Bernd

Keyword(s):

Control System ◽

Organizational Learning ◽

Structural Equation ◽

Individual Performance ◽

Management Control ◽

Mediating Effect ◽

Equation Modeling ◽

Management Control System ◽

Content Type ◽

The Relationship

Purpose This study aims to empirically examine the effects of using the management control system (MCS) on individual performance mediated by organizational learning. Complementarily, it evaluates the moderating effect of feedforward on the relationship between MCS use and organizational learning. Design/methodology/approach Structural equation modeling and mediation and moderation analyses were used in a sample of 194 managers from Brazilian companies listed in the Exame Magazine’s “Best and Biggest” ranking. Findings The results reveal that using the MCS from a cybernetic perspective contributes to organizational learning, contradicting theoretical arguments and empirical evidence that this hinders learning and that feedforward can strengthen this relationship, as long as it is in line with the way of using the MCS. A mediating effect of organizational learning on the relationship between MCS use and individual performance has also been confirmed. Practical implications The results demonstrate the effects of MCS use on individual performance and organizational learning by taking a taxonomy of cybernetic use and comprehensive MCS use as a basis. The results provide insights to managers by revealing that MCS use not only influences task performance through organizational learning but also tends to generate cooperative, persistent and initiative-taking behaviors. Originality/value The study provides an approach to the behavioral consequences of using the MCS (score-keeping use and comprehensive MCS use) and the role of specific cognitive and motivational mechanisms in individual performance from a multidimensional perspective (task-based, contextual and general).

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Management control system, organizational processes and institutional performance of technical training institutions in Kenya

International Journal of Research in Business and Social Science (2147-4478) ◽

10.20525/ijrbs.v8i6.539 ◽

2019 ◽

Vol 8 (6) ◽

pp. 229-239

Author(s):

Clement Karani Mbore ◽

Jane Sang ◽

Joyce Komen

Keyword(s):

Control System ◽

Management Control ◽

Moderating Effect ◽

Technical Training ◽

Vocational Education And Training ◽

Institutional Performance ◽

Organizational Processes ◽

Management Control System ◽

Training Institutions ◽

The Relationship

The purpose of this study was to determine the Moderating Effect of Management Control System (MCS) in the relationship between Organisation Processes and Institutional Performance of Technical Training Institutions (TTIs) in Kenya. The study was a cross-sectional survey in nature and used explanatory research design with the population obtained from the TTIs that were registered with the Ministry of Education, Science and Technology (MOEST) and Technical and Vocational Education and Training Authority (TVETA) by 2015. The main research instrument was a closed-ended questionnaire. The hypotheses in this study were tested using Hierarchical Moderated Multiple Regression (MMR) and the study found that organization processes had a significant positive influence on the institutional performance of TTIs in Kenya. The study findings indicated that the estimated coefficient was 0.555 indicating that organization processes had a significant influence on institutional performance. Further, the study found evidence that (i) MCS moderates the relationship between organizational processes and institutional performance, (ii)) MCS had a moderating effect on the relationship between organizational processes and institutional performance of Technical Training Institutions (TTIs) in Kenya.

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Strategia e design del sistema di controllo

MANAGEMENT CONTROL ◽

10.3280/maco2012-002002 ◽

2012 ◽

pp. 15-41

Author(s):

Graziano Coller ◽

Paolo Collini ◽

M. Laura Frigotto

Keyword(s):

Control System ◽

Continuous Process ◽

Business Practice ◽

Management Control ◽

Management Control System ◽

The Relationship

The relationship between management control system (MCS) and strategy has been widely discussed in literature but traditional studies on the fit between MCS and strategy assume that MCS must be designed to conform with a previously welldefined strategy. In this paper we adopt the idea that strategy is a continuous process, intertwined with daily business practice, and that strategy and MCS are mutually dependent; both these elements should be considered when designing a MCS. Through the analysis of a case study, we investigate how MCS affects firm's ability in strategy exploration and firm's strategy evolution. We claim that MCS design must be periodically revised in order to seek a balance between its ability to support exploration of new strategic directions and its capacity to allow the exploitation of previously defined strategies.

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The mediating role of management control system characteristics in the adoption of management accounting techniques

Pacific Accounting Review ◽

10.1108/par-10-2019-0133 ◽

2020 ◽

Vol 32 (4) ◽

pp. 421-442

Author(s):

Mayada Abd El-Aziz Youssef ◽

Esam E. Moustafa ◽

Habib Mahama

Keyword(s):

Control System ◽

Management Accounting ◽

Measurement Techniques ◽

Management Control ◽

Management Control System ◽

Content Type ◽

Mediating Role ◽

State Type ◽

The Relationship

Purpose This study aims to investigate the mediating role of management control system (MCS) characteristics in the relationship between state type, reflected through societal institutions (SIs), and two sets of management accounting techniques (MATs), namely, performance measurement techniques (PMTs) and cost measurement techniques (CMTs). Design/methodology/approach Structural equation modeling was used to analyze data from a cross-sectional survey of 136 firms in the United Arab Emirates (UAE). Findings The findings show a direct positive impact of state-type construct on MCS characteristics, and that MCS characteristics partially mediate the reported significant relationships between state type and the use of PMTs. While the findings show a similar positive relationship between state type and CMTs, MCS characteristics do not mediate this relationship. Research limitations/implications Although these results are affected by limitations associated with the survey method used, they are useful in explaining the necessary conditions supporting the use of MATs in general and performance measurement techniques in particular. Practical implications The study uses a cross-section of companies in the UAE, an attractive global investment destination, as its sample. The results can help investors better understand the choice of MATs in the UAE and its relation to MCS characteristics. Originality/value This study contributes to management accounting literature by determining the mediating role of MCS characteristics on the relationship between state type and the choice of two sets of MATs, whereas existing literature assumes a direct relation between the two.

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