IDEAS home Printed from https://ideas.repec.org/a/eme/jaocpp/18325910710732849.html
   My bibliography  Save this article

Controller involvement in management: an empirical study in large Italian corporations

Author

Listed:
  • Laura Zoni
  • Kenneth A. Merchant

Abstract

Purpose - The purpose of this paper is to report the findings of a study designed to understand how involved controllers are in management decision processes, what causes more or less involvement in those processes, and whether involvement is significantly associate with performance. Design/methodology/approach - To test the research propositions developed from a review of prior literature, data were collected from large Italian corporations using a questionnaire survey. Findings - The results show that most of the controllers are at least somewhat involved in management decision processes, and some are highly involved. A complex set of factors determine the extent and breadth of controller involvement. Controller involvement in either strategic decisions, operating decisions, or both types of decisions is positively related to some situational variables, including capital intensity, operating interdependency, line managers' financial competence, formalization of strategic planning and budgeting processes. It is negatively related to the use of controller positions as training for line roles. Overall, controller involvement was found to be positively associated with performance. Research limitations/implications - This study provides support for some prior research findings and some extension of prior theory. Some findings were not consistent with expectations. This study was based on a small sample – 17 organizations; it used some crude measures and scales; and the findings can be generalized reliably only to the population studied here – large Italian industrial firms. More research is needed for further tests and explorations of these findings. Practical implications - This research supports modern advice given to involve controllers highly in management decision‐making processes, but it also refines that advice by showing where high involvement is more (or less) desirable. Originality/value - These results provide some useful support of prior findings and some modifications and extensions that further our understanding in this area of importance both to researchers and practitioners.

Suggested Citation

  • Laura Zoni & Kenneth A. Merchant, 2007. "Controller involvement in management: an empirical study in large Italian corporations," Journal of Accounting & Organizational Change, Emerald Group Publishing Limited, vol. 3(1), pages 29-43, March.
  • Handle: RePEc:eme:jaocpp:18325910710732849
    DOI: 10.1108/18325910710732849
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/18325910710732849/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://www.emerald.com/insight/content/doi/10.1108/18325910710732849/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1108/18325910710732849?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fabio Magnacca & Riccardo Giannetti, 2024. "Management accounting and new product development: a systematic literature review and future research directions," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(2), pages 651-685, June.
    2. Ravi Kashyap, 2024. "The Concentration Risk Indicator: Raising the Bar for Financial Stability and Portfolio Performance Measurement," Papers 2408.07271, arXiv.org.
    3. Tomo, Andrea, 2023. "‘Angry accountants’: Making sense of professional identity crisis on online communities," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 95(C).
    4. Steens, Bert & Bots, Jan & Derks, Koen, 2024. "Developing digital competencies of controllers: Evidence from the Netherlands," International Journal of Accounting Information Systems, Elsevier, vol. 52(C).

    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:eme:jaocpp:18325910710732849. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Emerald Support (email available below). General contact details of provider: .

    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.