Management Control Systems, Decision-Making, and Innovation Development

2021 ◽  
Author(s):  
Dawid Szutowski
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ruth Dimes ◽  
Charl de Villiers

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.


2020 ◽  
Vol 3 (1) ◽  
pp. 245-253
Author(s):  
Deborah Christin Darmawan ◽  
Suwignyo Widagdo ◽  
Hamzah Fansuri Yusuf

This research aims to know the influence of organizational structure, leadership style,management control systems, and organizational culture toward behaviour decision making.Data collection methods used in this research is a method of questionnaire. The results of thisstudy suggest that the organizational structure of partially against the influential behavioraldecision making, leadership styles partially against the influential behavioral decisionmaking, not management control systems influential partially against the behavior ofdecision-making, and organizational culture has no effect partially against the decisionmaking behavior. Research results also showed a simultaneous influence organizationalstructure, leadership style, management control systems, and organizational culture towardsdecision-making behavior and note that the value of the coefficient of determination60.3%, while the remaining 39.7% is explained by other factors that are not described in thismodel.


2019 ◽  
Vol 19 (2) ◽  
pp. 160-175
Author(s):  
Dawid Szutowski

Abstract Research background: There seem to be a research gap concerning the relation between management control and innovation. Previous research in the field has generated inconclusive findings. Purpose: The purpose of the present study was to create a conceptual model representing the relation between management control and innovation. Research methodology: The study relied on a systematic literature review. The initial search yielded 269 papers, which were later analysed and reduced to select those with a substantial contribution to the purpose of the study. Next, the meta-synthesis method was employed to create a thematic map and extract information from the papers. Results: The formulated conceptual model indirectly links management control systems to innovation process efficiency through decision-making quality. Furthermore, it connects management control systems indirectly to decision-making quality, through the transactive memory system (specialisation, building credibility and coordination) and shared interpretation schemes. The link between decision-making quality and innovation process efficiency is introduced and based on the concept of an innovation process. Novelty: The paper fills in the missing link between management control and innovation by introducing decision-making quality into this context.


2021 ◽  
Vol 26 (3) ◽  
pp. 39-58
Author(s):  
Meryem CHEGRI ◽  
Hamza RIGALMA ◽  
Mohamed TORRA

Several researchers have been concerned with management control, others have analyzed the specificities of SMEs, but research relating to management control in SMEs is still scarce. Management control is one of the foundations of company management and performance, it provides the visibility necessary to coordinate, plan and judge the actions of company stakeholders. Stemming from industrial accounting, it now appears as a means of controlling the complexity of organizations and mobilizing skills. Thus, the purpose of management control systems, in particular, is to present managers with methods and tools enabling them to provide them with useful information for decision-making. The objective of this work is twofolded: – identify the specific features of SMEs which may have an influence on their management system and therefore on their management control practices; – draw up an overview of the different management control tools and practices adapted to SMEs to finally confirm that management control in SMEs exists.


2019 ◽  
Vol 2 (1) ◽  
pp. 82-92
Author(s):  
Fella Yunita Fitriyani

Accounting information systems (AIS) are collections of activities from organizations that are responsible for providing financial information obtained from data transactions for computer-based reporting purposes. So an accounting information system (AIS) is part of a Management Information System (MIS) that is responsible for financial statements and data transactions. Whereas the Management Control System (MCS) is a system used by management including methods, procedures, and strategies to collect, analyze information, evaluate and use it, as well as other actions to exercise control. The explanation above shows that information (accounting information and additional information) is needed by management to control in the company. This study provides a concept regarding Accounting Information Systems, Management Control Systems, and Company Performance. When the management control process is right, then the company's performance in increasing management control systems can provide information in an adequate communication structure so that it can be used as a basis for decision making. Decision making supported by accurate information makes the performance of unit managers able to take anticipatory steps and improve operational efficiency and effectiveness so that the performance of unit managers will be improved.


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