IDEAS home Printed from https://ideas.repec.org/a/ani/irdjom/v1y2019i1p12-19.html
   My bibliography  Save this article

The Review of Management Control System, corporate Strategy and Firm Performance

Author

Listed:
  • Aliyu Shehu Usman
  • Ahmed Sabo

    (Taraba State University Jalingo)

  • Tariro Masunda

    (Universiti Utara Malaysia)

Abstract

Management control system (MCS) and corporate strategy play vital roles in achieving organization set objectives. For it to be effective, management must align and integrate these concepts into their business models. The study seeks to investigate whether prior studies indicated a connection concerning corporate strategy, MCS, and organizational performance. This study employs the use of a literature review approach. A positive relationship does exist between these three variables. The consensus is that these three constructs complement each other to result in superior corporate performance. The study recommends that management must align its MCS to suit business strategies to improve performance.

Suggested Citation

  • Aliyu Shehu Usman & Ahmed Sabo & Tariro Masunda, 2019. "The Review of Management Control System, corporate Strategy and Firm Performance," iRASD Journal of Management, International Research Alliance for Sustainable Development (iRASD), vol. 1(1), pages 12-19, June.
    • Handle: RePEc:ani:irdjom:v:1:y:2019:i:1:p:12-19
    DOI: 10.52131/jom.2019.0101.0002
    as

    Download full text from publisher

    File URL: https://journals.internationalrasd.org/index.php/jom/article/view/108/111
    Download Restriction: no
    File URL: https://journals.internationalrasd.org/index.php/jom/article/view/108
    Download Restriction: no
    File URL: https://libkey.io/10.52131/jom.2019.0101.0002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Moses Acquaah, 2011. "Business Strategy And Competitive Advantage In Family Businesses In Ghana: The Role Of Social Networking Relationships," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 16(01), pages 103-126.
    2. Ittner, Christopher D. & Larcker, David F., 2001. "Assessing empirical research in managerial accounting: a value-based management perspective," Journal of Accounting and Economics, Elsevier, vol. 32(1-3), pages 349-410, December.
    3. Langfield-Smith, Kim, 1997. "Management control systems and strategy: A critical review," Accounting, Organizations and Society, Elsevier, vol. 22(2), pages 207-232, February.
    4. Chenhall, Robert H. & Euske, K.J., 2007. "The role of management control systems in planned organizational change: An analysis of two organizations," Accounting, Organizations and Society, Elsevier, vol. 32(7-8), pages 601-637.
    5. Acquaah, Moses, 2013. "Management control systems, business strategy and performance: A comparative analysis of family and non-family businesses in a transition economy in sub-Saharan Africa," Journal of Family Business Strategy, Elsevier, vol. 4(2), pages 131-146.
    6. Skærbæk, Peter & Tryggestad, Kjell, 2010. "The role of accounting devices in performing corporate strategy," Accounting, Organizations and Society, Elsevier, vol. 35(1), pages 108-124, January.
    7. Simons, Robert, 1987. "Accounting control systems and business strategy: An empirical analysis," Accounting, Organizations and Society, Elsevier, vol. 12(4), pages 357-374, June.
    8. Venohr, Bernd & Meyer, Klaus E., 2007. "The German miracle keeps running: How Germany's hidden champions stay ahead in the global economy," Working Papers 30, Berlin School of Economics and Law, Institute of Management Berlin (IMB).
    9. James G. March & Robert I. Sutton, 1997. "Crossroads---Organizational Performance as a Dependent Variable," Organization Science, INFORMS, vol. 8(6), pages 698-706, December.
    10. A. Miller & G. G. Dess, 1993. "Assessing Porter'S (1980) Model In Terms Of Its Generalizability, Accuracy And Simplicity," Journal of Management Studies, Wiley Blackwell, vol. 30(4), pages 553-585, July.
    11. Chenhall, Robert H., 2003. "Management control systems design within its organizational context: findings from contingency-based research and directions for the future," Accounting, Organizations and Society, Elsevier, vol. 28(2-3), pages 127-168.
    12. Bisbe, Josep & Otley, David, 2004. "The effects of the interactive use of management control systems on product innovation," Accounting, Organizations and Society, Elsevier, vol. 29(8), pages 709-737, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lindawati Gani & Johnny Jermias, 2012. "The Effects of Strategy–Management Control System Misfits on Firm Performance," Accounting Perspectives, John Wiley & Sons, vol. 11(3), pages 165-196, September.
    2. Iryna Alves & Sofia M. Lourenço, 2022. "The use of non-financial performance measures for managerial compensation: evidence from SMEs," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 33(2), pages 151-187, June.
    3. Acquaah, Moses, 2013. "Management control systems, business strategy and performance: A comparative analysis of family and non-family businesses in a transition economy in sub-Saharan Africa," Journal of Family Business Strategy, Elsevier, vol. 4(2), pages 131-146.
    4. Henri, Jean-Francois, 2006. "Management control systems and strategy: A resource-based perspective," Accounting, Organizations and Society, Elsevier, vol. 31(6), pages 529-558, August.
    5. James T. Mackey & F. Johnny Deng, 2016. "Examining the Role of Management Control Systems in the Creation of an Innovative Culture," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 13(03), pages 1-27, June.
    6. Smith, Steven D. & Thomas, Tyler F., 2024. "The effects of strategic alignment and strategic clarity on multidimensional task performance," Accounting, Organizations and Society, Elsevier, vol. 112(C).
    7. Naranjo-Gil, David & Hartmann, Frank, 2007. "Management accounting systems, top management team heterogeneity and strategic change," Accounting, Organizations and Society, Elsevier, vol. 32(7-8), pages 735-756.
    8. Jarrar, Nazmi Saeb & Smith, Malcolm, 2014. "Innovation in entrepreneurial organisations: A platform for contemporary management change and a value creator," The British Accounting Review, Elsevier, vol. 46(1), pages 60-76.
    9. van Veen-Dirks, Paula, 2010. "Different uses of performance measures: The evaluation versus reward of production managers," Accounting, Organizations and Society, Elsevier, vol. 35(2), pages 141-164, February.
    10. Ellen Haustein & Robert Luther & Peter Schuster, 2014. "Management control systems in innovation companies: a literature based framework," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 24(4), pages 343-382, February.
    11. Müller-Stewens, Benedikt & Widener, Sally K. & Möller, Klaus & Steinmann, Jan-Christoph, 2020. "The role of diagnostic and interactive control uses in innovation," Accounting, Organizations and Society, Elsevier, vol. 80(C).
    12. M. Frigotto & Graziano Coller & Paolo Collini, 2013. "The Strategy and Management Control Systems relationship as emerging dynamic process," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(3), pages 631-656, August.
    13. Cooper, Christine, 2015. "Entrepreneurs of the self: The development of management control since 1976," Accounting, Organizations and Society, Elsevier, vol. 47(C), pages 14-24.
    14. Ana Filipa Roque, 2018. "Control Systems and Strategy: A Literature Review," GATR Journals jmmr201, Global Academy of Training and Research (GATR) Enterprise.
    15. Mundy, Julia, 2010. "Creating dynamic tensions through a balanced use of management control systems," Accounting, Organizations and Society, Elsevier, vol. 35(5), pages 499-523, July.
    16. Cadez, Simon & Guilding, Chris, 2008. "An exploratory investigation of an integrated contingency model of strategic management accounting," Accounting, Organizations and Society, Elsevier, vol. 33(7-8), pages 836-863.
    17. Lee, Chia-Ling & Wang, Wen-Ying, 2020. "Strategy, accountants’ activities and new product development performance," Advances in accounting, Elsevier, vol. 50(C).
    18. Songini, Lucrezia & Gnan, Luca & Malmi, Teemu, 2013. "The role and impact of accounting in family business," Journal of Family Business Strategy, Elsevier, vol. 4(2), pages 71-83.
    19. Verbeeten, F.H.M., 2005. "New’ Performance Measures: Determinants of Their Use and Their Impact on Performance," ERIM Report Series Research in Management ERS-2005-054-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    20. Margaret A. Abernethy & Henri C. Dekker & Jennifer Grafton, 2021. "The Influence of Performance Measurement on the Processual Dynamics of Strategic Change," Management Science, INFORMS, vol. 67(1), pages 640-659, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ani:irdjom:v:1:y:2019:i:1:p:12-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pranav Kumar (email available below). General contact details of provider: https://journals.internationalrasd.org/index.php/jom/index .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.