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Management Control Systems and Clinical Experience of Managers in Public Hospitals

Author

Listed:
  • Rogério Joao Lunkes

    (Department of Accounting, University Federal of Santa Catarina, Florianópolis-SC 88040-900, Brazil)

  • David Naranjo-Gil

    (Financial Economics and Accounting Department, Pablo de Olavide University, 41013 Sevilla, Spain)

  • Ernesto Lopez-Valeiras

    (Financial Economics and Accounting Department, Universidad de Vigo, 32004 Ourense, Spain
    Biocost Research Group, Galicia Sur Health Research Institute (IIS Galicia Sur), SERGAS-UVIGO, 36312 Vigo, Spain)

Abstract

Healthcare authorities are encouraging managers in hospitals to acquire clinical experience and knowledge in order to better carry out and coordinate healthcare service delivery. The main objective of this paper is to analyse how the clinical experience of hospital managers is related to public health institutions’ performance. It is proposed that the effect of the clinical experience on operative and financial organizational performance is indirect through the mediating variables of perceived utility of management information and horizontal management control system. This paper analyses how these variables impact hospital performance through the data from a survey sent to 364 hospital managers in Brazil. The results show that managers’ clinical experience is related to higher perceived utility of historical, financial, short-term, and internal information, but not with horizontal control adoption in hospitals. Furthermore, our results show that, in hospitals, perceived utility of forecasted, non-financial, long-term, and external managerial information positively affects hospitals’ financial performance, while adoption of horizontal control management positively affects operational performance. Through showing evidence that clinical background could explain the differences not only in hospital service management but also in information capabilities and management control processes, this study offer meaningful implications for healthcare authorities and hospital managers involved in the development and implementation of strategies in the health sector.

Suggested Citation

  • Rogério Joao Lunkes & David Naranjo-Gil & Ernesto Lopez-Valeiras, 2018. "Management Control Systems and Clinical Experience of Managers in Public Hospitals," IJERPH, MDPI, vol. 15(4), pages 1-9, April.
    • Handle: RePEc:gam:jijerp:v:15:y:2018:i:4:p:776-:d:141551
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    References listed on IDEAS

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    1. David Naranjo-Gil & María Jesús Sánchez-Expósito & Laura Gómez-Ruiz, 2016. "Traditional vs. Contemporary Management Control Practices for Developing Public Health Policies," IJERPH, MDPI, vol. 13(7), pages 1-13, July.
    2. Pizzini, Mina J., 2006. "The relation between cost-system design, managers' evaluations of the relevance and usefulness of cost data, and financial performance: an empirical study of US hospitals," Accounting, Organizations and Society, Elsevier, vol. 31(2), pages 179-210, February.
    3. Bouwens, Jan & Abernethy, Margaret A., 2000. "The consequences of customization on management accounting system design," Accounting, Organizations and Society, Elsevier, vol. 25(3), pages 221-241, April.
    4. Simona Karpavičiūtė & Jūratė Macijauskienė, 2016. "The Impact of Arts Activity on Nursing Staff Well-Being: An Intervention in the Workplace," IJERPH, MDPI, vol. 13(4), pages 1-17, April.
    5. Sophie Tessier & David Otley, 2012. "From management controls to the management of controls," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 25(5), pages 776-805, June.
    6. 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.
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    Cited by:

    1. Radtke, Robin R. & Speklé, Roland F. & Widener, Sally K., 2023. "Flourish or flounder: Do trust-centric management controls encourage knowledge sharing and team performance?," Accounting, Organizations and Society, Elsevier, vol. 107(C).

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