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The impact of society on management control systems

Author

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  • Greve, Jan
  • Ax, Christian
  • Bedford, David S.
  • Bednarek, Piotr
  • Brühl, Rolf
  • Dergård, Johan
  • Ditillo, Angelo
  • Dossi, Andrea
  • Gosselin, Maurice
  • Hoozée, Sophie
  • Israelsen, Poul
  • Janschek, Otto
  • Johanson, Daniel
  • Johansson, Tobias
  • Madsen, Dag Øivind
  • Malmi, Teemu
  • Rohde, Carsten
  • Sandelin, Mikko
  • Strömsten, Torkel
  • Toldbod, Thomas
  • Willert, Jeanette

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 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.

Suggested Citation

  • Greve, Jan & Ax, Christian & Bedford, David S. & Bednarek, Piotr & Brühl, Rolf & Dergård, Johan & Ditillo, Angelo & Dossi, Andrea & Gosselin, Maurice & Hoozée, Sophie & Israelsen, Poul & Janschek, Ott, 2017. "The impact of society on management control systems," Scandinavian Journal of Management, Elsevier, vol. 33(4), pages 253-266.
    • Handle: RePEc:eee:scaman:v:33:y:2017:i:4:p:253-266
    DOI: 10.1016/j.scaman.2017.08.002
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