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Traditional management accounting tools in SMEs? network. Do they foster partner dialogue and business innovation?

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  • Selena Aureli
  • Andrea Cardoni
  • Mara Del Baldo
  • Rosa Lombardi

Abstract

This paper aims to understand whether traditional management accounting tools (e.g. financial statement, reclassification and contribution margin analysis) contribute to foster dialogue and innovation in business networks composed of SMEs (small and medium-sized enterprises). Through the analysis of a case study, the paper focuses on a contractual network operating in the paper&print sector in Italy. Framing the analysis in the Simons? construct (1990 and 1995), who distinguishes between diagnostic and interactive controls, the paper provides insights on the use of management control in inter-organizational settings, arguing that the traditional accounting tools can play an innovative role in network success. The contribution of the paper is on the ongoing debate on which functions, accounting information and MCSs (management control systems) may play in networks. In particular, findings shed light on the need to adapt the distinction between "diagnostic" and "interactive" in the network setting, given the horizontal and non-hierarchical relationships between the units involved.

Suggested Citation

  • Selena Aureli & Andrea Cardoni & Mara Del Baldo & Rosa Lombardi, 2019. "Traditional management accounting tools in SMEs? network. Do they foster partner dialogue and business innovation?," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2019(1 suppl.), pages 35-50.
    • Handle: RePEc:fan:macoma:v:html10.3280/maco2019-su1003
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    Cited by:

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    2. Andrea Cardoni & Alessio Paradisi, 2020. "The implementation of management accounting in small-medium enterprises (SMEs). A knowledge transfer perspective," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2020(Suppl. 1), pages 39-61.
    3. Simone Aresu & Luigi Rombi & Andrea Cardia, 2019. "Management accounting systems in venture capital-backed start-up companies," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2019(3), pages 35-58.
    4. Daniela Di Berardino & Faisal Anees, 2024. "Creativit? organizzativa ed individuale nelle piccole e medie imprese: il ruolo del sistema di controllo," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2024(1), pages 227-249.
    5. Francesca Sgr? & Federica Palazzi & Massimo Ciambotti & Lorenzo Gelsomini, 2020. "Factors promoting and hindering the adoption of management accounting tools. Evidence from Italian manufacturing SMEs," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2020(Suppl. 1), pages 19-38.
    6. Federica Palazzi & Francesca Sgrò & Massimo Ciambotti & Nick Bontis & Lorenzo Gelsomini, 2023. "The moderating effect of corporate size on the relationship between prospector strategy and management accounting practices," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 34(2), pages 135-165, June.

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