Managing a Double-edged Sword: The Paradoxical Dynamics of Participative Development of Pricing Control

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Abstract

This study presents a field investigation into the dynamics of developing pricing control designs between the global headquarters of a large multinational company and its most important sales subsidiary. The paper employs a paradox theoretical lens to analyze the development of pricing control designs through employee participation. We report two key findings. First, we outline contradictions between a decentralized, subjective approach and a centralized, financial approach to pricing, conceptualizing the tensions underlying this dilemma. Second, we conceptualize the paradoxical features of the centralization–decentralization dilemma, focusing on how processes switch between virtuous and vicious cycles. We find that employee participation in development processes paradoxically advances and undermines the development of centralized pricing control designs.
OriginalsprogEngelsk
TidsskriftJournal of Management Accounting Research
Antal sider23
ISSN1049-2127
DOI
StatusUdgivet - 7 okt. 2024

Bibliografisk note

Epub ahead of print. Published online: 07 October 2024.

Emneord

  • Pricing control
  • Organizational design
  • Price discounting
  • Performance management
  • Management of sales organizations
  • Paradox theory
  • Action research
  • Change management
  • Tensions and contradictions
  • Virtuous and vicious cycles

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