IDEAS home Printed from https://ideas.repec.org/a/spr/jmgtco/v26y2015i2p225-248.html
   My bibliography  Save this article

Combining system dynamics modelling and management control systems to support strategic learning processes in SMEs: a Dynamic Performance Management approach

Author

Listed:
  • Federico Cosenz
  • Lidia Noto

Abstract

Traditional management control systems, mainly centred on accounting-based measures, are widely recognized as useful tools to support Small and Medium Enterprises (SMEs) managers and entrepreneurs in steering business development. However, due to the increasing turbulence and dynamic complexity that characterize today’s competitive arenas, such systems need to be combined with simulation-based methodologies in order to improve entrepreneurial learning processes and, as a result, better detect possible crisis symptoms and weak signals of change—emerging from the business environment—to promptly react. Therefore, the aim of this paper is to show how a combination of traditional management control mechanisms with system dynamics modelling can effectively lead to better results in terms of SMEs’ performance measurement and management. As a result, a Dynamic Performance Management approach will be illustrated and discussed, also through an empirical application to a real small business. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Federico Cosenz & Lidia Noto, 2015. "Combining system dynamics modelling and management control systems to support strategic learning processes in SMEs: a Dynamic Performance Management approach," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 26(2), pages 225-248, August.
  • Handle: RePEc:spr:jmgtco:v:26:y:2015:i:2:p:225-248
    DOI: 10.1007/s00187-015-0208-z
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s00187-015-0208-z
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s00187-015-0208-z?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.

    References listed on IDEAS

    as
    1. Sanna Pekkola & Hannu Rantanen, 2014. "Utilisation of performance measurement information in management: top manager perspective," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 15(1), pages 23-34.
    2. Wolfgang Schultze & Ramona Trommer, 2012. "The concept of environmental performance and its measurement in empirical studies," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 22(4), pages 375-412, January.
    3. Jürgen Weber, 2011. "The development of controller tasks: explaining the nature of controllership and its changes," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 22(1), pages 25-46, September.
    4. Peter J. Brews & Michelle R. Hunt, 1999. "Learning to plan and planning to learn: resolving the planning school/learning school debate," Strategic Management Journal, Wiley Blackwell, vol. 20(10), pages 889-913, October.
    5. Werner Gleißner & Roland Helm & Susanne Kreiter, 2013. "Measurement of competitive advantages and market attractiveness for strategic controlling," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 24(1), pages 53-75, May.
    6. Christian Mastilak & Linda Matuszewski & Fabienne Miller & Alexander Woods, 2012. "Evaluating conflicting performance on driver and outcome measures: the effect of strategy maps," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 23(2), pages 97-114, November.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Ossi Pesämaa, 2017. "Personnel- and action control in gazelle companies in Sweden," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(1), pages 107-132, February.
    2. Anja Heinicke, 2018. "Performance measurement systems in small and medium-sized enterprises and family firms: a systematic literature review," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(4), pages 457-502, February.
    3. Javier Andres Calderon‐Tellez & Gary Bell & Milton M. Herrera & Carlos Sato, 2024. "Project management and system dynamics modelling: Time to connect with innovation and sustainability," Systems Research and Behavioral Science, Wiley Blackwell, vol. 41(1), pages 3-29, January.
    4. Malesios, Chrisovalantis & De, Debashree & Moursellas, Andreas & Dey, Prasanta Kumar & Evangelinos, Konstantinos, 2021. "Sustainability performance analysis of small and medium sized enterprises: Criteria, methods and framework," Socio-Economic Planning Sciences, Elsevier, vol. 75(C).
    5. Erland Hejn Nielsen & Steen Nielsen, 2020. "Preparing students for careers using business analytics and data-driven decision making," Economics Working Papers 2020-08, Department of Economics and Business Economics, Aarhus University.
    6. Antonio Duréndez & Julio Dieguez-Soto & Antonia Madrid-Guijarro, 2023. "The influence of CEO’s financial literacy on SMEs technological innovation: the mediating effects of MCS and risk-taking," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-26, December.
    7. Saroj Koul & Ivan W. Taylor & Oluwabunmi A. Falebita & Takuma Ono & Rowland Chen & Mia T. Vogel, 2022. "Examining the success of women of color-owned small and medium-sized enterprises in the United States: A system dynamics perspective," International Entrepreneurship and Management Journal, Springer, vol. 18(4), pages 1373-1401, December.
    8. Malesios, Chrisovalantis & De, Debashree & Moursellas, Andreas & Dey, Prasanta & Evangelinos, Konstantinos, 2019. "Review of Statistical Modeling Approaches for Sustainability Analysis of Small and Medium sized Enterprises," MPRA Paper 93028, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. K. Poehlmann & R. Helm & O. Mauroner & J. Auburger, 2021. "Corporate spin-offs’ success factors: management lessons from a comparative empirical analysis with research-based spin-offs," Review of Managerial Science, Springer, vol. 15(6), pages 1767-1796, August.
    2. Natalia Semenova, 2021. "Management control systems in response to social and environmental risk in large Nordic companies," International Journal of Corporate Social Responsibility, Springer, vol. 6(1), pages 1-11, December.
    3. Mayer-Haug, Katrin & Read, Stuart & Brinckmann, Jan & Dew, Nicholas & Grichnik, Dietmar, 2013. "Entrepreneurial talent and venture performance: A meta-analytic investigation of SMEs," Research Policy, Elsevier, vol. 42(6), pages 1251-1273.
    4. Md. Abdul Kaium Masud & Mohammad Sharif Hossain & Jong Dae Kim, 2018. "Is Green Regulation Effective or a Failure: Comparative Analysis between Bangladesh Bank (BB) Green Guidelines and Global Reporting Initiative Guidelines," Sustainability, MDPI, vol. 10(4), pages 1-19, April.
    5. Dan Li & Manuel Portugal Ferreira, 2008. "Internal and External Factors on Firms’ Transfer Pricing Decisions: Insights from Organization Studies," Notas Económicas, Faculty of Economics, University of Coimbra, issue 27, pages 23-38, June.
    6. Gruber, Marc, 2007. "Uncovering the value of planning in new venture creation: A process and contingency perspective," Journal of Business Venturing, Elsevier, vol. 22(6), pages 782-807, November.
    7. Fethi, Sami & Rahuma, Abdulhamid, 2020. "The impact of eco-innovation on CO2 emission reductions: Evidence from selected petroleum companies," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 108-115.
    8. Robert Rieg, 2018. "Tasks, interaction and role perception of management accountants: evidence from Germany," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 29(2), pages 183-220, August.
    9. Theoharakis, Vasilis & Zheng, Yuyan & Zhang, Long, 2024. "Dynamic strategic marketing planning: The paradox of concurrently reconfiguring and implementing strategic marketing planning," Journal of Business Research, Elsevier, vol. 174(C).
    10. Giovanna Mariani & Davide Morelli & Leonardo Bartoloni, 2019. "Managing uncertainty in the start-up environment. Is a business plan an incentive or a limitation?," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2019(1), pages 73-96.
    11. Annalisa Ferrari & Piergiuseppe Morone & Valentina E. Tartiu, 2016. "Tackling Uncertainty through Business Plan Analysis—A Case Study on Citrus Waste Valorisation in the South of Italy," Agriculture, MDPI, vol. 6(1), pages 1-12, January.
    12. Matthias Fabian Gregersen Trischler & Jason Li-Ying, 2023. "Digital business model innovation: toward construct clarity and future research directions," Review of Managerial Science, Springer, vol. 17(1), pages 3-32, January.
    13. Inge Wulf & Jens Niemöller & Natalia Rentzsch, 2014. "Development toward integrated reporting, and its impact on corporate governance: a two-dimensional approach to accounting with reference to the German two-tier system," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 25(2), pages 135-164, October.
    14. Miguel Pina e Cunha & Joao Vieira da Cunha & Ken Kamoche, 2000. "The age of emergence: toward a new organizational mindset," Nova SBE Working Paper Series wp382, Universidade Nova de Lisboa, Nova School of Business and Economics.
    15. Johnson, Aaron J. & Johnson, Heather C. & Devadoss, Stephen & Foltz, John C., 2011. "Strategic Group Analysis of U.S. Food Businesses Using the Two-step Clustering Method," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(2), pages 1-16, May.
    16. Alexey Bereznoy, 2017. "Corporate Foresight in Multinational Business Strategies," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 11(1), pages 9-22.
      • Alexey Bereznoy, 2017. "Corporate Foresight in Multinational Business Strategies," Foresight-Russia Форсайт, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 11(1 (eng)), pages 9-22.
    17. Patricia Pitcher & Anne D. Smith, 2001. "Top Management Team Heterogeneity: Personality, Power, and Proxies," Organization Science, INFORMS, vol. 12(1), pages 1-18, February.
    18. Ossi Pesämaa, 2017. "Personnel- and action control in gazelle companies in Sweden," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(1), pages 107-132, February.
    19. Cristiana Cattaneo & Chiara Oppi, 2023. "Multidimensionalit? e multidisciplinariet? nell?Hospital-Based Health Technology Assessment: quale ruolo per il controller?," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2023(2), pages 187-211.
    20. Soh Young In & Young Joon Lee & Robert G. Eccles, 2024. "Looking back and looking forward: A scientometric analysis of the evolution of corporate sustainability research over 47 years," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 2225-2259, May.

    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:spr:jmgtco:v:26:y:2015:i:2:p:225-248. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.