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The impact of society on management control systems
Örebro universitet, Handelshögskolan vid Örebro Universitet.ORCID iD: 0000-0001-5262-4235
University of Gothenburg, Gothenburg, Sweden.
University of Technology Sydney, Sydney NSW, Australia.
Wrocław University of Economics, Wroclaw, Poland.
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2017 (English)In: Scandinavian Journal of Management, ISSN 0956-5221, E-ISSN 1873-3387, Vol. 33, no 4, p. 253-266Article in journal (Refereed) Published
Abstract [en]

The aim of this study is to investigate whether certain configurations of management controls dominate in certain societies (socio-cultural contexts) and whether the effectiveness of a given archetype of management control systems (MCSs) varies depending on the socio-cultural setting the society in which it operates. The study focuses on three socio-cultural groups and the corresponding institutional contexts (an Anglo-Saxon group, a Central European group, and a Northern European group) and three MCS archetypes (delegated bureaucratic control, delegated output control, and programmable output control). We use unique data from a cross-national, interview-based survey encompassing 610 strategic business units from nine countries (seven European countries plus Canada and Australia). The idea that firms tend to adapt MCSs to the socio-cultural context does not gain empirical support in this study. No significant differences in the distribution of MCSs between the three socio-cultural groups are noted. However, we do find that programmable output control has a more positive impact on effectiveness in Anglo-Saxon cultures, while delegated output control has a more positive impact on effectiveness in Northern Europe. Taken together these findings indicate that distinct differences between societies make a particular MCS design more appropriate in a given society, but where such differences are not dramatic (as in the present case), multiple MCS designs can be found in the same society.

Place, publisher, year, edition, pages
Elsevier , 2017. Vol. 33, no 4, p. 253-266
Keywords [en]
Societal institutions, Business systems, Contingency framework, Bureaucratic control, Output control
National Category
Economics
Identifiers
URN: urn:nbn:se:mdh:diva-49724DOI: 10.1016/j.scaman.2017.08.002ISI: 000418217600006Scopus ID: 2-s2.0-85029426284OAI: oai:DiVA.org:mdh-49724DiVA, id: diva2:1461511
Funder
The Jan Wallander and Tom Hedelius Foundation
Note

Funding Agency:

Tore Browalds Stiftelse at Svenska Handelsbanken

Available from: 2018-01-04 Created: 2020-08-26Bibliographically approved

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Greve, JanJohansson, Tobias

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