scholarly journals Enabling and coercive management control systems and organizational resilience

2019 ◽  
Vol 30 (81) ◽  
pp. 307-323 ◽  
Author(s):  
Ilse Maria Beuren ◽  
Vanderlei dos Santos
Keyword(s):  
Control Systems ◽  
Structural Equation ◽  
Positive Association ◽  
Negative Influence ◽  
Management Control ◽  
Management Control Systems ◽  
Equation Modeling ◽  
Organizational Resilience ◽  
Resilience Capacity

ABSTRACT This study examines the impacts of enabling and coercive management control systems (MCSs) on organizational resilience, in the cognitive, behavioral, and contextual dimensions. Research on resilience has sought to identify elements capable of improving organizational resilience capacity, and enabling and coercive MCSs may shed new light on this discussion. Understanding the role of MCSs in the creation and use of resilience capacities can help explain why some organizations manage to outperform others in situations of adverse and turbulent events. The literature has focused on enabling MCSs and adopts the premise that, in general, the use of coercive controls is negatively perceived. However, the results of the research show that enabling and coercive MCSs coexist in companies, and that coercive controls do not have a negative influence on resilience, even showing a positive association with the contextual dimension. A survey was conducted in companies that bought and/or were acquired by others, according to PwC Brazil’s Mergers and Acquisitions report, and the sample consists of 144 managers from different organizational areas of these companies who answered the questionnaire sent via Survey Monkey. The structural equation modeling (SEM) technique was applied to test the hypotheses. The study presents evidence that MCSs constitute antecedents of resilience capacity in organizations. This suggests that the design and use of MCSs may favor the development of capacities to deal with turbulences and unexpected events in advance.

scholarly journals The Mediating Role of Business Strategies between Management Control Systems Package and Firms Stability: Evidence from SMEs in Malaysia

2019 ◽  
Vol 11 (17) ◽  
pp. 4705
Author(s):  
Muhammad Haseeb ◽  
Marcin Lis ◽  
Ilham Haouas ◽  
Leonardus WW Mihardjo
Keyword(s):  
Control Systems ◽  
Structural Equation ◽  
Positive Influence ◽  
Management Control ◽  
Business Strategies ◽  
Management Control Systems ◽  
Equation Modeling ◽  
Model Assessment ◽  
Cost Leadership ◽  
Differentiation Strategy

The aim of the current study was to ascertain the influence of a management control systems (MCS) package on a firm’s sustainability with the help of mediating variables such as differentiation and cost leadership strategy in Malaysian small and medium enterprises (SMEs). Data were collected from managers working in Malaysian SMEs. A total of 384 questionnaires was finally used for analysis using SmartPLS 3.8.2. Area cluster sampling was used for data collection, and seven out of sixteen clusters were selected randomly. These included Selangor, Johor, Kuala Lumpur, Sabah, Penang, Sarawak, and Perak because these seven states cover 73.9% of total SMEs. Structural equation modeling (SEM) was used to test the hypotheses. Confirmatory factor analysis (CFA) was also used to examine the reliability and validity, and structural model assessment was used to test the relationship between variables. Findings revealed that an MCS package had a positive influence on a firm’s sustainability, cost leadership, and differentiation strategy. Moreover, cost leadership and differentiation strategy have a significant and positive influence on a firm’s sustainability. In addition, cost leadership strategies and differentiation strategies significantly mediate between the MCS package and a firm’s sustainability. This research assesses the influence of the MCS package through cost leadership and differentiation strategy on a firm’s sustainability of Malaysian SMEs. It helps top management to focus on the MCS package and business strategies in attaining a firm’s long-term sustainability. Finally, research recommendations discuss that the present study helps future researchers and academicians.

Paradoxes of Control and Creativity: Evidence from Indian Public Sector Enterprises

2020 ◽  
Vol 17 (06) ◽  
pp. 2050046
Author(s):  
Sanjeev Ganguly ◽  
Satyasiba Das
Keyword(s):  
Public Sector ◽  
Control Systems ◽  
Structural Equation ◽  
Second Order ◽  
Management Control ◽  
Management Control Systems ◽  
Equation Modeling ◽  
The Past ◽  
The Relationship ◽  
Levers Of Control

Management control systems (MCSs) are commonly assumed to limit autonomy and freedom, thereby hindering innovation. Over the past several years, researchers have studied this relationship in western societies and have compiled contradictory findings. As such, the relationship between MCSs and innovation needs to be further explored. This study seeks to provide a better understanding of this relationship by applying the theoretical levers-of-control (LoC) framework while using two new second-order constructs. Quantitative data are collected from large Indian public sector enterprises (PSE) and are analyzed using the structural equation modeling (SEM) partial least squares (PLS) method. Findings confirm that Indian PSEs tend to use all four levers of the framework and that control and innovation can co-exist. It also differentiates the effect on innovation of two new second-order control constructs: constraining and inspirational. Findings of this study may help managers influence innovation by giving them the ability to adjust the different LoC.

scholarly journals Organisational culture, environmental management control systems, environmental performance of Pakistani manufacturing industry

2019 ◽  
Vol 68 (7) ◽  
pp. 1293-1322 ◽  
Author(s):  
Tze San Ong ◽  
Hussain Bakhsh Magsi ◽  
Thomas F. Burgess
Keyword(s):  
Environmental Management ◽  
Control Systems ◽  
Environmental Performance ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Management Control ◽  
Management Control Systems ◽  
Equation Modeling ◽  
Content Type ◽  
And Control

Purpose The purpose of this paper is to analyze the influence of organizational culture (OC) on a firm’s environmental performance (EP) via the mediating variable of environmental management control systems (EMCS). Design/methodology/approach Data were collected from 314 Pakistani manufacturing firms via the questionnaire survey, and the structural equation modeling was used to test the relationships. Findings The stable and flexible values of OC affect the effectiveness of formal and informal EMCS. Informal EMCS mediates the relationship between flexible values and EP, whereas formal EMCS mediates the stable values and EP. Overall, the data reveal that the integration of environmental culture within an organization’s culture and control systems leads to improve EP. Originality/value The study is one of the first, to the author’s knowledge, that links OC, EMCS, and EP in a developing economy, in this case Pakistan.

scholarly journals Antecedents and Consequences of Quality Performance

2005 ◽  
Vol 17 (1) ◽  
pp. 111-131 ◽  
Author(s):  
Adam S. Maiga ◽  
Fred A. Jacobs
Keyword(s):  
Customer Satisfaction ◽  
Financial Performance ◽  
Control Systems ◽  
Structural Equation ◽  
Management Control ◽  
Management Control Systems ◽  
Equation Modeling ◽  
Future Research ◽  
Quality Performance ◽  
The Impact

This study uses structural equation modeling to investigate the influence of management control systems (i.e., quality goal, quality feedback, and quality incentives) on quality performance, the influence of quality performance on both financial performance and customer satisfaction, and the impact of customer satisfaction on financial performance at the business unit level. Overall the results indicate substantial support for our proposed theoretical framework. However, the direct relationship between customer satisfaction and financial performance was insignificant. Further analyses indicate that quality performance mediates the relationship between management control systems and financial performance and customer satisfaction. The implications, limitations, and directions for future research are discussed.

Control systems and interorganizational identification in technology parks cooperation

2022 ◽  
Vol 33 (88) ◽  
pp. 13-28
Author(s):  
Celliane Ferraz Pazetto ◽  
Ilse Maria Beuren
Keyword(s):  
Control Systems ◽  
Structural Equation ◽  
Management Control ◽  
Equation Modeling ◽  
Interorganizational Cooperation ◽  
Technology Park ◽  
Technology Parks ◽  
The Relationship ◽  
Positive Effect

ABSTRACT The aim of this study was to analyze the influence of the design of management control systems (MCSs) on interorganizational cooperation and the moderating role of companies’ identification with their technology park. The conditions that promote the emergence of interorganizational cooperation are indicated in the literature as an important research gap, as well as the little evidence about how MCS design influences cooperation, especially in relationships based on innovation. MCSs in interorganizational partnerships have been shown to be relevant for the coordination and maintenance of the relationship, and this study reveals that MCSs promotes cooperative behaviors among the companies associated with the technology parks. The interorganizational identification of the companies with their park was moderately present, thus prompting the inclusion of social and relational aspects in interorganizational studies, which remain scarcely explored in the literature. The MCSs of the parks are focused on stimulating the companies’ cooperation, which is one purpose of this partnership. By not confirming the moderating effect of identification, it was verified that this construct drives cooperation in a way that is dissociated from the MCSs. A survey was conducted in organizations associated with Porto Digital and with the São José dos Campos Technology Park, and it had the participation of 187 managers. To analyze the data the partial least squares structural equation modeling technique was applied and the differences between the two parks were further analyzed. The MCSs design and interorganizational identification act as antecedents of the companies’ cooperation with their technology park. On the other hand, the direct and positive effect of the MCS design on cooperation is not moderated by how much these companies identify with the interorganizational relationship established. The paper contributes by identifying ways of fostering cooperation, one of the purposes of interorganizational agreements, as well as by providing evidence in a context that is scarcely addressed in the literature.

scholarly journals The Role Of Agility In The Relationship Between Use Of Management Control Systems And Organizational Performance: Evidence From Korea And Japan

2017 ◽  
Vol 33 (3) ◽  
pp. 521-538 ◽  
Author(s):  
Sangwan Lee ◽  
Dasom Lee
Keyword(s):  
Organizational Performance ◽  
Control Systems ◽  
Structural Equation ◽  
Management Control ◽  
Management Control Systems ◽  
Manufacturing Companies ◽  
Organizational Capability ◽  
Diagnostic Use ◽  
The Relationship

This study investigates the role of agility in the relationship between use of management control systems (MCS) and organizational performance by proffering the association of agility, use of MCS, and organizational performance. Using survey data collected from 185 large Korean and Japanese manufacturing companies, we analyze proposing relationships with partial least squares (PLS) structural equation approach. The result shows that diagnostic use of MCS shows no significant relationship with agility, while interactive use of MCS is positively associated with agility. Agility positively affects organizational performance, which implies that characteristics of agility are necessary to overwhelm rivals under rapidly changing environment. This study is one of the first studies that empirically examine the role of agility as an organizational capability in the relationship between MCS and organizational performance with data collected from two different countries. 

scholarly journals INFLUENCE OF CONTROL SYSTEMS AND SLACK TIME ON PROCESS INNOVATION

2020 ◽  
Vol 21 (3) ◽  
Author(s):  
CELLIANE F. PAZETTO ◽  
SILVANA MANNES ◽  
ILSE M. BEUREN
Keyword(s):  
Control Systems ◽  
Structural Equation ◽  
Design Methodology ◽  
Process Innovation ◽  
Management Control ◽  
Organizational Characteristics ◽  
Equation Modeling ◽  
Diagnostic Use ◽  
Slack Time

ABSTRACT Purpose: This study analyzes the influence of the interactive and the diagnostic use of Management Control Systems (MCS) and slack time on process innovation in incubated companies. Originality/value: Organizational characteristics are associated with processes innovation in organizations with contemporary configuration. The study brings evidence to the contrasting findings of the MCS literature with slack time and process innovation. Design/methodology/approach: A survey was conducted with managers of companies listed on websites of incubators associated with the Associação Nacional de Entidades Promotoras de Empreendimentos Inovadores (National Association of Entities Promoting Innovative Enterprises), obtaining a sample of 106 valid responses. To analyze the data, the Structural Equation Modeling technique was applied to analyze the data. Findings: The results indicated that the interactive use of MCS promotes slack time at work, and the diagnostic use inhibits its creation. However, slack time was not significantly associated with processes innovation, which reveals a dysfunctional role of the slack. The interactive use of MCS had a significant influence on processes innovation. It is concluded that the interactive use prevails when the purpose is to promote processes innovation, as it favors contacts between different hierarchical levels and learning, while the diagnostic use highlights its relevance by inhibiting the creation of slack time, understood as a dysfunction for not leading to processes innovation. This denotes that the interactive and the diagnostic use of MCS are complementary in incubated companies.

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