Abstract
This paper investigates the relationship between the use of management control systems (MCS) and companies’ performance. The paper focuses on how executive managers’ use of MCS relates to developments in company performance. The MCS investigated are: strategy, evaluation of subordinates, rules and procedures, and executive managers’ focus on customer relations when guiding and directing their subordinates. A path model is developed which proposes that a larger extent of using the above MCS as well as the frequency of business and leadership evaluation are associated with development in financial performance. Using survey data on executive managers’ use of MCS in large companies, the paper shows patterns in the extent to which managers in large companies use the MCS and how this affects company performance. The results confirm that there are some positive and some negative connections between the use of the MCS and company performance.
| Original language | English |
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| Publication date | 2016 |
| Number of pages | 31 |
| Publication status | Published - 2016 |
| Event | The 10th International Management Control Research Conference - University of Antwerp, Antwerp, Belgium Duration: 7 Sept 2016 → 9 Sept 2016 Conference number: 10 http://www.managementcontrolassociation.ac.uk/conference-2016/ |
Conference
| Conference | The 10th International Management Control Research Conference |
|---|---|
| Number | 10 |
| Location | University of Antwerp |
| Country/Territory | Belgium |
| City | Antwerp |
| Period | 07/09/2016 → 09/09/2016 |
| Internet address |
Keywords
- Management control systems
- Performance
- Large companies
- Strategy
- Evaluation
- Customer orientation
- Rules
- Procedures