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 Family Management and Firm Performance in Family SMEs: The Mediating Roles of Management Control Systems and Technological Innovation

2019 ◽  
Vol 11 (14) ◽  
pp. 3805 ◽  
Author(s):  
Daniel Ruiz-Palomo ◽  
Julio Diéguez-Soto ◽  
Antonio Duréndez ◽  
José António C. Santos
Keyword(s):  
Firm Performance ◽  
Control Systems ◽  
Technological Innovation ◽  
Management Control ◽  
Management Control Systems ◽  
Family Management ◽  
Mediating Role ◽  
Family Smes ◽  
The Relationship

The aim of this research is to analyze the mediating role of the use of management control systems (MCS) and the achievement of technological innovation (TI) in the relationship between family management and firm performance in family small and medium-sized enterprises (SMEs). A questionnaire was conducted by 617 managers of family SMEs in Spain, and our model was tested using partial least squares. Our findings show that both MCS and TI play crucial mediating roles in the understanding of the relationship between family management and firm performance. As a result, family-managed firms that utilize MCS and produce TI are much more likely to generate better performance. These results encourage family managers to use formal MCS because in that way they will contribute to obtaining better firm performance, directly and indirectly through TI. We focus on private family SMEs, because these specific firms contribute significantly to the economies worldwide. This paper contributes to resolve the controversy regarding the relationship between family management and firm performance introducing MCS and TI as mediating factors.

scholarly journals Role of Management Control Systems in Quality, Innovation and Organizational Performance in Portugal SMES Companies

2018 ◽  
Vol 15 (02) ◽  
pp. 1850014 ◽  
Author(s):  
Marina Godinho Antunes ◽  
Joaquín Texeira Quirós ◽  
Maria do Rosáirio Texeira Fernandes Justino
Keyword(s):  
Organizational Performance ◽  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Financial Indicators ◽  
Total Quality ◽  
Online Questionnaire ◽  
Multivariate Statistical ◽  
Innovation Strategies

The purpose of this research is to analyze the relationship between management control systems, total quality management (TQM) and innovation, and also the effects of management control systems in the organizational performance. The research was developed based on a conceptual model designed to analyze these dimensions. The data were obtained through an online questionnaire, sent to small and medium-sized Portuguese companies, having been conducted the study based on responses received from 287 valid questionnaires, and using a multivariate statistical analysis for the statistical development. The findings indicate that non-financial indicators provide innovation strategies of products and processes. However, the financial indicators only provide the innovation strategies of processes. It is also verified that only non-financial indicators provide equally the implementation of TQM practices. The results also show that financial indicators only provide an improvement in the financial results of the organization, while the non-financial indicators also improve its operational performance.

scholarly journals Integrating environmental management control systems to translate environmental strategy into managerial performance

2019 ◽  
Vol 15 (4) ◽  
pp. 626-653 ◽  
Author(s):  
Peter G. Rötzel ◽  
Alexander Stehle ◽  
Burkhard Pedell ◽  
Katrin Hummel
Keyword(s):  
Environmental Management ◽  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Organizational Level ◽  
Environmental Strategy ◽  
Managerial Performance ◽  
Content Type ◽  
The Relationship

Purpose This study aims to investigate the role of environmental management control systems as mechanisms to translate environmental strategy into environmental managerial performance. Design/methodology/approach Based on survey data from 218 firms, the authors test a structural equation model. Findings The results show that environmental management control systems mediate the relationship between environmental strategy and environmental managerial performance. Moreover, the level of integration between regular and environmental management control systems significantly impacts the relationship between environmental management control systems and environmental managerial performance. Therefore, environmental management control systems are important mechanisms to translate environmental strategy into managerial performance, and a high level of integration can reinforce this role. Research limitations/implications The typical shortcomings of survey-based research apply to this study. Originality/value While previous research focuses primarily on environmental performance at the organizational level, this study addresses individual managerial performance with regard to environmental outcomes. In addition, the authors investigate how the level of integration between regular and environmental management control systems influences the relationship between environmental strategy and environmental managerial performance as well as the mediating role of environmental management control systems.

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.

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.

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.

The Structural Effects of Quality Management Control Systems on Organizational Performance

2015 ◽  
pp. 389-406
Author(s):  
Zulnaidi Yaacob
Keyword(s):  
Quality Management ◽  
Organizational Performance ◽  
Control Systems ◽  
Employee Satisfaction ◽  
Computer Software ◽  
Cost Benefit ◽  
Management Control ◽  
Management Control Systems ◽  
And Performance ◽  
The Relationship

This chapter discusses the results of an investigation into the effects of control systems on organizational performance within the context of Quality Management (QM). Data were collected using questionnaires from 205 managers within local authority organizations in Malaysia. Respondents were selected using stratified random sampling, and the data was analyzed using two computer software programs: SPSS and AMOS. The findings demonstrate the existence of a significant effect for Quality Management Control Systems (QMCS) on employee satisfaction, innovation, and cost benefit. Although the direct effect of QMCS on customer satisfaction was insignificant, this relationship was mediated by the dimensions of employee satisfaction and cost benefit. In summary, this chapter provides evidence for the significant role performed by control systems as a source for performance improvement within QM-organizations. In addition, this study reveals that the relationship between control systems and performance is not a simple and direct relationship but rather a structural relationship.

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