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The impact of society on management control systems

Greve, Jan; Ax, Christian; Bedford, David S.; Bednarek, Piotr; Brühl, Rolf; Dergård, Johan LU ; Ditillo, Angelo; Dossi, Andrea; Gosselin, Maurice and Hoozée, Sophie, et al. (2017) In Scandinavian Journal of Management 33(4). p.253-266
Abstract

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... (More)

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.

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publication status
published
subject
keywords
Bureaucratic control, Business systems, Contingency framework, Output control, Societal institutions
in
Scandinavian Journal of Management
volume
33
issue
4
pages
253 - 266
publisher
Elsevier
external identifiers
  • scopus:85029426284
  • wos:000418217600006
ISSN
0956-5221
DOI
10.1016/j.scaman.2017.08.002
language
English
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yes
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b802300d-ceef-49e0-af66-ebe65116af26
date added to LUP
2017-10-05 09:09:33
date last changed
2018-01-16 13:20:56
@article{b802300d-ceef-49e0-af66-ebe65116af26,
  abstract     = {<p>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.</p>},
  author       = {Greve, Jan and Ax, Christian and Bedford, David S. and Bednarek, Piotr and Brühl, Rolf and Dergård, Johan and Ditillo, Angelo and Dossi, Andrea and Gosselin, Maurice and Hoozée, Sophie and Israelsen, Poul and Janschek, Otto and Johanson, Daniel and Johansson, Tobias and Madsen, Dag Øivind and Malmi, Teemu and Rohde, Carsten and Sandelin, Mikko and Strömsten, Torkel and Toldbod, Thomas and Willert, Jeanette},
  issn         = {0956-5221},
  keyword      = {Bureaucratic control,Business systems,Contingency framework,Output control,Societal institutions},
  language     = {eng},
  number       = {4},
  pages        = {253--266},
  publisher    = {Elsevier},
  series       = {Scandinavian Journal of Management},
  title        = {The impact of society on management control systems},
  url          = {http://dx.doi.org/10.1016/j.scaman.2017.08.002},
  volume       = {33},
  year         = {2017},
}