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Analysis of the Relationships Between Sustainable Management Control and Performance Appraisal System

Author

Listed:
  • Ionel Bostan

    (Stefan cel Mare University of Suceava, Romania)

  • Aliona Bîrcă

    (Academy of Economic Studies of Moldova, 61 Mitropolit Gavriil Banulescu-Bodoni, Chisinau 2005, Moldova)

  • Neculai Tabără

    (Faculty of Economics and Business Administration, Al. I. Cuza University of Iasi, 11 Carol I, 700506 Iasi, Romania)

  • Ligia Muntean Jemna

    (Faculty of Economics and Business Administration, Al. I. Cuza University of Iasi, 11 Carol I, 700506 Iasi, Romania)

Abstract

This study investigates management control from the perspective of intention of companies to engage into sustainable development. The authors mainly focused on analysing the relations between sustainable management control and the system of performance appraisal utilising resource-based theory. The theory behind these relations has been studied by reviewing the literature in the field, and the empirical investigation used questionnaire-based data, presenting the responses of top management, and the data available in the Annual Reports on the main segment of Bucharest Stock Exchange. The study proves that financial performance has a significant influence on management control therefore the authors recommend the return on capital employed as one of the most recommended indicators. The sustainable nature of management control is the result of the spread and development of the institutional theory, the provisions of Directive 2014/95/EU and the Guide of Global Management Accounting Principles (2015) using stewardship. Consequently, profits could no longer be the main element in the assessment of company‟s financial „health”. Therefore, sustainable balanced scorecard is one of solid measures for managing financial and non-financial performance in the process of achieving sustainable success.

Suggested Citation

  • Ionel Bostan & Aliona Bîrcă & Neculai Tabără & Ligia Muntean Jemna, 2019. "Analysis of the Relationships Between Sustainable Management Control and Performance Appraisal System," Postmodern Openings, Editura Lumen, Department of Economics, vol. 10(4), pages 08-28, December.
    • Handle: RePEc:lum:rev3rl:v:10:y:2019:i:4:p:08-28
    DOI: https://doi.org/10.18662/po/91
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    References listed on IDEAS

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    1. Fabio Caputo & Stefania Veltri & Andrea Venturelli, 2017. "Sustainability Strategy and Management Control Systems in Family Firms. Evidence from a Case Study," Sustainability, MDPI, vol. 9(6), pages 1-23, June.
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    Cited by:

    1. Cidália Oliveira & Margarida Rodrigues & Rui Silva & Galvão Meirinhos & Mário Franco, 2022. "BSC’s Perspectives Ranking towards Organizational Performance: An Empirical Study Performed with Portuguese Exporters," Sustainability, MDPI, vol. 14(23), pages 1-22, November.

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    More about this item

    Keywords

    sustainable development; management control; performance; balanced scorecard;
    All these keywords.

    JEL classification:

    • A23 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Graduate

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