The Impact of Society on Management Control Systems

Jan Greve, Christian Ax, David S. Bedford, Piotr Bednarek, Rolf Brühl, Johan Dergård, Angelo Ditillo, Andrea Dossi, Maurice Gosselin, Sophie Hoozée, Poul Israelsen, Otto Janschek, Daniel Johanson, Tobias Johansson, Dag Øivind Madsen, Teemu Malmi, Carsten Rohde, Mikko Sandelin, Torkel Strömsten, Thomas Toldbod & 1 others Jeanette Willert

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

The aim of this study is to investigate whether certain configurations of management controls dominate in certain societies (socio-cultural contexts) and whether the effectiveness of a given archetype of management control systems (MCSs) varies depending on the socio-cultural setting-the society-in which it operates. The study focuses on three socio-cultural groups and the corresponding institutional contexts (an Anglo-Saxon group, a Central European group, and a Northern European group) and three MCS archetypes (delegated bureaucratic control, delegated output control, and programmable output control). We use unique data from a cross-national, interview-based survey encompassing 610 strategic business units from nine countries (seven European countries plus Canada and Australia). The idea that firms tend to adapt MCSs to the socio-cultural context does not gain empirical support in this study. No significant differences in the distribution of MCSs between the three socio-cultural groups are noted. However, we do find that programmable output control has a more positive impact on effectiveness in Anglo-Saxon cultures, while delegated output control has a more positive impact on effectiveness in Northern Europe. Taken together these findings indicate that distinct differences between societies make a particular MCS design more appropriate in a given society, but where such differences are not dramatic (as in the present case), multiple MCS designs can be found in the same society.

Original languageEnglish
JournalScandinavian Journal of Management
Volume33
Issue number4
Pages (from-to)253-266
ISSN0956-5221
DOIs
Publication statusPublished - 2017

Keywords

  • Societal institutions
  • Business systems
  • Contingency framework
  • Bureaucratic control
  • Output control

Cite this

Greve, J., Ax, C., Bedford, D. S., Bednarek, P., Brühl, R., Dergård, J., ... Willert, J. (2017). The Impact of Society on Management Control Systems. Scandinavian Journal of Management, 33(4), 253-266. https://doi.org/10.1016/j.scaman.2017.08.002
Greve, Jan ; Ax, Christian ; Bedford, David S. ; Bednarek, Piotr ; Brühl, Rolf ; Dergård, Johan ; Ditillo, Angelo ; Dossi, Andrea ; Gosselin, Maurice ; Hoozée, Sophie ; Israelsen, Poul ; Janschek, Otto ; Johanson, Daniel ; Johansson, Tobias ; Madsen, Dag Øivind ; Malmi, Teemu ; Rohde, Carsten ; Sandelin, Mikko ; Strömsten, Torkel ; Toldbod, Thomas ; Willert, Jeanette. / The Impact of Society on Management Control Systems. In: Scandinavian Journal of Management. 2017 ; Vol. 33, No. 4. pp. 253-266.
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Greve, J, Ax, C, Bedford, DS, Bednarek, P, Brühl, R, Dergård, J, Ditillo, A, Dossi, A, Gosselin, M, Hoozée, S, Israelsen, P, Janschek, O, Johanson, D, Johansson, T, Madsen, DØ, Malmi, T, Rohde, C, Sandelin, M, Strömsten, T, Toldbod, T & Willert, J 2017, 'The Impact of Society on Management Control Systems', Scandinavian Journal of Management, vol. 33, no. 4, pp. 253-266. https://doi.org/10.1016/j.scaman.2017.08.002

The Impact of Society on Management Control Systems. / Greve, Jan; Ax, Christian; Bedford, David S.; Bednarek, Piotr; Brühl, Rolf; Dergård, Johan; Ditillo, Angelo; Dossi, Andrea; Gosselin, Maurice; Hoozée, Sophie; Israelsen, Poul; Janschek, Otto; Johanson, Daniel; Johansson, Tobias; Madsen, Dag Øivind; Malmi, Teemu; Rohde, Carsten; Sandelin, Mikko; Strömsten, Torkel; Toldbod, Thomas; Willert, Jeanette.

In: Scandinavian Journal of Management, Vol. 33, No. 4, 2017, p. 253-266.

Research output: Contribution to journalJournal articleResearchpeer-review

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AU - Greve, Jan

AU - Ax, Christian

AU - Bedford, David S.

AU - Bednarek, Piotr

AU - Brühl, Rolf

AU - Dergård, Johan

AU - Ditillo, Angelo

AU - Dossi, Andrea

AU - Gosselin, Maurice

AU - Hoozée, Sophie

AU - Israelsen, Poul

AU - Janschek, Otto

AU - Johanson, Daniel

AU - Johansson, Tobias

AU - Madsen, Dag Øivind

AU - Malmi, Teemu

AU - Rohde, Carsten

AU - Sandelin, Mikko

AU - Strömsten, Torkel

AU - Toldbod, Thomas

AU - Willert, Jeanette

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N2 - The aim of this study is to investigate whether certain configurations of management controls dominate in certain societies (socio-cultural contexts) and whether the effectiveness of a given archetype of management control systems (MCSs) varies depending on the socio-cultural setting-the society-in which it operates. The study focuses on three socio-cultural groups and the corresponding institutional contexts (an Anglo-Saxon group, a Central European group, and a Northern European group) and three MCS archetypes (delegated bureaucratic control, delegated output control, and programmable output control). We use unique data from a cross-national, interview-based survey encompassing 610 strategic business units from nine countries (seven European countries plus Canada and Australia). The idea that firms tend to adapt MCSs to the socio-cultural context does not gain empirical support in this study. No significant differences in the distribution of MCSs between the three socio-cultural groups are noted. However, we do find that programmable output control has a more positive impact on effectiveness in Anglo-Saxon cultures, while delegated output control has a more positive impact on effectiveness in Northern Europe. Taken together these findings indicate that distinct differences between societies make a particular MCS design more appropriate in a given society, but where such differences are not dramatic (as in the present case), multiple MCS designs can be found in the same society.

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KW - Societal institutions

KW - Business systems

KW - Contingency framework

KW - Bureaucratic control

KW - Output control

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KW - Business systems

KW - Contingency framework

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Greve J, Ax C, Bedford DS, Bednarek P, Brühl R, Dergård J et al. The Impact of Society on Management Control Systems. Scandinavian Journal of Management. 2017;33(4):253-266. https://doi.org/10.1016/j.scaman.2017.08.002