The conception of the management control function: implementation and characteristics

This research aimed at deepening the empirical knowledge of the management control function in Lebanese insurance companies. It showed that, in the Lebanese insurance sector, the management control function is currently characterized by: (1) Its contingency (it may not formally exist, or it may exist structurally as an autonomous department, or it may be entrusted to the company's CFO or HR Director), (2) Heterogeneity of practices and activities in the field of administrative, financial or human resources management, and (3) A diversity of missions with a preponderance given to the supervision of activities or advice to management or the board of directors. This study also presented the construction of a typology of management control systems present in Lebanese insurance companies; a typology strongly determined by the contingency factors such as size, internationalization of the company as well as the conception of the management control function by the organization's governance.

MANAGEMENT CONTROL SYSTEMS AND LODGING BUSINESS MODEL IN JAPANESE RYOKANS

The lodging sector in Japan has experienced a shrinking market size of traditional lodging providers (known as ryokans). Ryokans, which account for about 40% of Japanese lodging market, have operated their lodging businesses based on a unique business model that has been in existence for over 1,000 years. About 30% of ryokans are in a declining stage, where they are unable to break away from the traditional business models and are in a negative spiral of continuing deficits. The intent of this paper is to understand how ryokans innovate their business model while maintaining some of their traditional fundamental elements. This paper adopts a multiple-case study approach based on the two high-performing ryokans with long histories. Our findings add the ryokans’ commercial-cultural context to existing literature that describes the role of management control systems (MCS) in supporting business model innovation. Understanding the achievement of their business model innovation from a long-term perspective of about thirty years provides our paper with theoretical originality. We conclude that the weights of formal and informal controls in MCS are equal in the long term regardless of the direction of their business model innovation. In recent years, tourism policy has encouraged ryokans to use management accounting information to overcome their low-profit businesses. Our practical suggestions complement the tourism policy that presupposes the use of management accounting information alone, and support ryokan managers to use it as a part of MCS.

PERAN SISTEM PENGENDALIAN MANAJEMEN DALAM PENERAPAN STRATEGI RELATIONSHIP MARKETING AZIZAH KONVEKSI DI DESA JATIRUNGGO KEC. PRINGAPUS

This research is a research about how the role of management control system in implementing relationship marketing strategy in a company. Where the name of the company certainly needs a strategy to increase sales. This study aims to determine the role of management control systems in implementing a relationship marketing strategy at a convection company located in the village of Jatirunggo, Kec. Pringapus. In this study, it was found that the production process had not run optimally due to rejected or defective products. Therefore, the convection party needs control in order to anticipate the damage that occurs to the products produced later. This control can be done by supervising activities at the time of production, selecting materials with good quality and providing training to the parties concerned with the production. Then, this convection Azizah distributed pamphlets through social media and posted pamphlets in crowded places to increase sales, orders and increase incoming orders. With so many customers from out of town working with Azizah convection

The Role of Family Management and Management Control Systems in Promoting Technological Innovation in Family SMEs

This paper seeks to resolve the controversy regarding the relationship between family management and technological innovation outcomes. In contrast to prior studies, we focus on small and medium enterprises (SMEs) and go beyond the traditional input-output statistical analysis, by introducing the mediating effect of the use of management control systems (MCS). We also further examine heterogeneity among family firms, studying whether a greater family management influences, directly or indirectly, on technological innovation outcomes. Our results from a data consists of 199 Spanish family-owned small and medium enterprises (FSMEs) were not able to indicate a significant direct influence of the level of family management on technological innovation outcome but supported the notion that the utilization of MCS mediated the above relationship.

Management control systems in response to social and environmental risk in large Nordic companies

This empirical study investigates the relationships between management control systems and social and environmental risks. Building on Simons’ Levers of Control conceptual framework, this study proposes that companies facing social and environmental risks will enhance the quality of their management control systems by integrating social and environmental elements into management control systems in order to manage the related risks. The study uses a longitudinal dataset of the 1179 largest listed Nordic companies for the period 2014–2018. The multivariate regression confirms a negative relationship between the social and environmental integration and social and environmental risks. The results indicate that the social and environmental integrated performance measurement system and strategy implementation are not congruent with the social and environmental risks that the companies face. Nordic companies have not adopted the social and environmental integrated measurement system and strategy in response to social and environmental risks. When the number of social and environmental incidents increase and companies meet high levels of social and environmental risks, their management control systems do not match the related risks. Such social and environmental integration should be improved in order to prevent wider negative implications of the incidents on the natural environment and society in large.

New wine in old bottles: governing logics for applying sustainability management control systems in Austrian electric utilities

Purpose Literature shows that a strong link between sustainability control systems and sustainability management (SM) fosters sustainability development (SD) and compliance with regulatory requirements and stakeholder expectations. Research on the integration of SM and its control mechanisms in corporate business remains scarce. This study aims to focus on Sustainability Management Control Systems (S)MCS applied in Electric Utility Companies (EUC), which experience close scrutiny by its stakeholders in as much as they play an important role in climate change agendas. Design/methodology/approach The methodological approach includes in-depth expert interviews within seven Austrian EUC followed by qualitative content analysis. This study builds on “MCS as a package” by Malmi and Brown (2008). Institutional logics (IL) are used for the theoretical approach. Findings Results show that several IL are involved in implementing strategic SMCS in EUC. Managers cope by integrating emerging hybrid logics, selectively coupled SMCS and making sense by building a communication bridge between the strategic and operative levels to create awareness. Research limitations/implications Results show that managers in EUC have to acquire a new hybrid logic for SD. This implies the use of informal controls and a strong focus on administrative and cultural controls as the main control mechanisms for SM. Originality/value The paper contributes to MCS research by using the scarcely applied theoretical framework of IL. Findings facilitate a better understanding of the control mechanisms behind SM and the coping strategies of managers in applying SMCS.

MANAGEMENT CONTROL SYSTEM IN THE CONTEXT OF SMES

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.