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Use of Monte Carlo simulation: an empirical study of German, Austrian and Swiss controlling departments

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  • Cathérine Grisar
  • Matthias Meyer

Abstract

This paper addresses current and future aspects of the use of Monte Carlo simulation in controlling departments and examines context as well as company-internal factors that may drive the intensity of its usage. To this end, we conducted an empirical survey that was completed by 445 participants from Germany, Austria and Switzerland. The results suggest a rather low adoption rate of Monte Carlo simulation in controlling, but at the same time, the quality of knowledge concerning Monte Carlo simulation within the companies is much higher. In addition, we identify a strong increase in the use of Monte Carlo simulation very recently, and its use is expected to increase threefold within the next 5 years. Furthermore, regression analyses indicate that the use of Monte Carlo simulation is mainly driven by company-internal factors such as its perceived relevance and years of usage. Contrary to our expectations, context factors such as perceived environmental uncertainty do not explain usage, and only company size and industry sector have significant effects. Copyright Springer-Verlag Berlin Heidelberg 2015

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  • Cathérine Grisar & Matthias Meyer, 2015. "Use of Monte Carlo simulation: an empirical study of German, Austrian and Swiss controlling departments," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 26(2), pages 249-273, August.
    • Handle: RePEc:spr:jmgtco:v:26:y:2015:i:2:p:249-273
    DOI: 10.1007/s00187-015-0213-2
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    References listed on IDEAS

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    1. Cathérine Grisar & Matthias Meyer, 2016. "Use of simulation in controlling research: a systematic literature review for German-speaking countries," Management Review Quarterly, Springer, vol. 66(2), pages 117-157, April.

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    More about this item

    Keywords

    Controlling; Monte Carlo simulation; Survey; Perceived environmental uncertainty; Use; C60; M41;
    All these keywords.

    JEL classification:

    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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