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Management control systems, business strategy and performance: A comparative analysis of family and non-family businesses in a transition economy in sub-Saharan Africa

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  • Acquaah, Moses

Abstract

This article compared the relationships among management control systems (MCS), business strategy and firm performance in family businesses (FBs) and non-family businesses (NFBs) in the context of a transition economy in sub-Saharan Africa that has not been previously studied – Ghana. The findings indicated that the influence of MCS on business strategy is contingent on whether the firm is a FB or NFB. The influence of (i) DCS on the cost leadership strategy is stronger for NFBs than FBs; (ii) ICS on the differentiation strategy is stronger for FBs than NFBs; and (iii) the dynamic tension created by the joint use of DCS and ICS on both the cost leadership and differentiation strategies is stronger for FBs than NFBs. Moreover, business strategy mediates the MCS-performance relationships; however, both the indirect and total impacts of MCS on performance are stronger for FBs than NFBs.

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  • 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.
    • Handle: RePEc:eee:fambus:v:4:y:2013:i:2:p:131-146
    DOI: 10.1016/j.jfbs.2013.03.002
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    8. Samuel Adomako & Joseph Amankwah‐Amoah & Albert Danso & Renata Konadu & Samuel Owusu‐Agyei, 2019. "Environmental sustainability orientation and performance of family and nonfamily firms," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1250-1259, September.
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    11. Bellora-Bienengräber, Lucia & Derfuss, Klaus & Endrikat, Jan, 2023. "Taking stock of research on the levers of control with meta-analytic methods: Stylized facts and boundary conditions," Accounting, Organizations and Society, Elsevier, vol. 106(C).
    12. Francesca Culasso & Elisa Giacosa & Luca Maria Manzi & Leo-Paul Dana, 2018. "Professionalization in Family Businesses. How to strengthen strategy implementation and control, favouring succession," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2018(1), pages 45-71.
    13. Albert Danso & Samuel Adomako & Joseph Amankwah‐Amoah & Samuel Owusu‐Agyei & Renata Konadu, 2019. "Environmental sustainability orientation, competitive strategy and financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 28(5), pages 885-895, July.
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    15. Shafique-ur Rehman & Rapiah Mohamed & Hazeline Ayoup, 2019. "The mediating role of organizational capabilities between organizational performance and its determinants," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-23, December.
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