The Use of Management Controls in Different Cultural Regions: An Empirical Study of Anglo-Saxon, Germanic and Nordic Practices

Teemu Malmi; Christian Ax; David Bedford; Piotr Bednarek; Rolf Brühl; Johan Dergård; Angelo Ditillo; Andrea Dossi; Maurice Gosselin; Jan  Greve; Sophie Hoozee; Poul Israelsen; Otto Janschek; Daniel Klingberg Johansson; Tobias Johansson; Dag Oivind Madsen; Carsten Rohde; Mikko Sandelin; Torkel Strömsten; Thomas Toldbod; Jeanette Willert

The Use of Management Controls in Different Cultural Regions: An Empirical Study of Anglo-Saxon, Germanic and Nordic Practices

Teemu Malmi, Christian Ax, David Bedford, Piotr Bednarek, Rolf Brühl, Johan Dergård, Angelo Ditillo, Andrea Dossi, Maurice Gosselin, Jan Greve, Sophie Hoozee, Poul Israelsen, Otto Janschek, Daniel Klingberg Johansson, Tobias Johansson, Dag Oivind Madsen, Carsten Rohde, Mikko Sandelin, Torkel Strömsten, Thomas ToldbodJeanette Willert

Department of Accounting

Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research › peer-review

Abstract

This study addresses differences in management control practices in Anglo-Saxon (Australia, Canada), Germanic (Austria, Belgium, Germany), and Nordic firms (Denmark, Finland, Norway, Sweden). Unique data is collected through structured interviews from 688 strategic business units (SBUs) in these countries. We find differences across cultural regions with regard to how managers delegate decision rights to their subordinates, establish multidimensional reporting lines, involve subordinates in cross-functional tasks, and involve subordinates in strategic planning activities. We also find differences in the comprehensiveness of plans, purposes of performance measurement and evaluation, and the importance of interactively using budgets and performance measurement systems. Furthermore, we find differences in the nature and bases of rewards and variable compensation. Regarding cultural controls, differences are identified in recruitment and socialization practices. Implications of these and other findings for both theory development and practice are discussed.

Original language	English
Title of host publication	10th Conference on New Directions in Management Accounting : Innovations in Practice and Research
Editors	Kari Lukka, Michael Shields
Number of pages	56
Place of Publication	Bruxelles
Publisher	European Institute for Advanced Studies in Management
Publication date	2016
Publication status	Published - 2016
Event	The 10th Conference on New Directions in Management Accounting - Bruxelles, Belgium Duration: 14 Dec 2016 → 16 Dec 2016 Conference number: 10 http://www.eiasm.org/frontoffice/event_announcement.asp?event_id=1162

Conference

Conference	The 10th Conference on New Directions in Management Accounting
Number	10
Country/Territory	Belgium
City	Bruxelles
Period	14/12/2016 → 16/12/2016
Internet address	http://www.eiasm.org/frontoffice/event_announcement.asp?event_id=1162

Series	EIASM Conference Proceedings Series
ISSN	1998-7374

Keywords

Management control package
Management control systems
National culture
Survey

Handle.net

Persistent link

Cite this

Malmi, T., Ax, C., Bedford, D., Bednarek, P., Brühl, R., Dergård, J., Ditillo, A., Dossi, A., Gosselin, M., Greve, J., Hoozee, S., Israelsen, P., Janschek, O., Johansson, D. K., Johansson, T., Madsen, D. O., Rohde, C., Sandelin, M., Strömsten, T., ... Willert, J. (2016). The Use of Management Controls in Different Cultural Regions: An Empirical Study of Anglo-Saxon, Germanic and Nordic Practices. In K. Lukka, & M. Shields (Eds.), 10th Conference on New Directions in Management Accounting: Innovations in Practice and Research European Institute for Advanced Studies in Management.

Malmi, Teemu ; Ax, Christian ; Bedford, David et al. / The Use of Management Controls in Different Cultural Regions : An Empirical Study of Anglo-Saxon, Germanic and Nordic Practices. 10th Conference on New Directions in Management Accounting: Innovations in Practice and Research. editor / Kari Lukka ; Michael Shields. Bruxelles : European Institute for Advanced Studies in Management, 2016. (EIASM Conference Proceedings Series).

@inproceedings{b8dd52f6652b4f9f9bcf55b8d17aa0e2,

title = "The Use of Management Controls in Different Cultural Regions: An Empirical Study of Anglo-Saxon, Germanic and Nordic Practices",

abstract = "This study addresses differences in management control practices in Anglo-Saxon (Australia, Canada), Germanic (Austria, Belgium, Germany), and Nordic firms (Denmark, Finland, Norway, Sweden). Unique data is collected through structured interviews from 688 strategic business units (SBUs) in these countries. We find differences across cultural regions with regard to how managers delegate decision rights to their subordinates, establish multidimensional reporting lines, involve subordinates in cross-functional tasks, and involve subordinates in strategic planning activities. We also find differences in the comprehensiveness of plans, purposes of performance measurement and evaluation, and the importance of interactively using budgets and performance measurement systems. Furthermore, we find differences in the nature and bases of rewards and variable compensation. Regarding cultural controls, differences are identified in recruitment and socialization practices. Implications of these and other findings for both theory development and practice are discussed.",

keywords = "Management control package, Management control systems, National culture, Survey, Management control package, Management control systems, National culture, Survey",

author = "Teemu Malmi and Christian Ax and David Bedford and Piotr Bednarek and Rolf Br{\"u}hl and Johan Derg{\aa}rd and Angelo Ditillo and Andrea Dossi and Maurice Gosselin and Jan Greve and Sophie Hoozee and Poul Israelsen and Otto Janschek and Johansson, {Daniel Klingberg} and Tobias Johansson and Madsen, {Dag Oivind} and Carsten Rohde and Mikko Sandelin and Torkel Str{\"o}msten and Thomas Toldbod and Jeanette Willert",

year = "2016",

language = "English",

series = "EIASM Conference Proceedings Series",

publisher = "European Institute for Advanced Studies in Management",

editor = "Kari Lukka and Michael Shields",

booktitle = "10th Conference on New Directions in Management Accounting",

note = "The 10th Conference on New Directions in Management Accounting ; Conference date: 14-12-2016 Through 16-12-2016",

url = "http://www.eiasm.org/frontoffice/event_announcement.asp?event_id=1162",

}

Malmi, T, Ax, C, Bedford, D, Bednarek, P, Brühl, R, Dergård, J, Ditillo, A, Dossi, A, Gosselin, M, Greve, J, Hoozee, S, Israelsen, P, Janschek, O, Johansson, DK, Johansson, T, Madsen, DO, Rohde, C, Sandelin, M, Strömsten, T, Toldbod, T & Willert, J 2016, The Use of Management Controls in Different Cultural Regions: An Empirical Study of Anglo-Saxon, Germanic and Nordic Practices. in K Lukka & M Shields (eds), 10th Conference on New Directions in Management Accounting: Innovations in Practice and Research. European Institute for Advanced Studies in Management, Bruxelles, EIASM Conference Proceedings Series, The 10th Conference on New Directions in Management Accounting, Bruxelles, Belgium, 14/12/2016.

The Use of Management Controls in Different Cultural Regions: An Empirical Study of Anglo-Saxon, Germanic and Nordic Practices. / Malmi, Teemu; Ax, Christian; Bedford, David et al.
10th Conference on New Directions in Management Accounting: Innovations in Practice and Research. ed. / Kari Lukka; Michael Shields. Bruxelles: European Institute for Advanced Studies in Management, 2016. (EIASM Conference Proceedings Series).

Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research › peer-review

TY - GEN

T1 - The Use of Management Controls in Different Cultural Regions

T2 - The 10th Conference on New Directions in Management Accounting

AU - Malmi, Teemu

AU - Ax, Christian

AU - Bedford, David

AU - Bednarek, Piotr

AU - Brühl, Rolf

AU - Dergård, Johan

AU - Ditillo, Angelo

AU - Dossi, Andrea

AU - Gosselin, Maurice

AU - Greve, Jan

AU - Hoozee, Sophie

AU - Israelsen, Poul

AU - Janschek, Otto

AU - Johansson, Daniel Klingberg

AU - Johansson, Tobias

AU - Madsen, Dag Oivind

AU - Rohde, Carsten

AU - Sandelin, Mikko

AU - Strömsten, Torkel

AU - Toldbod, Thomas

AU - Willert, Jeanette

N1 - Conference code: 10

PY - 2016

Y1 - 2016

N2 - This study addresses differences in management control practices in Anglo-Saxon (Australia, Canada), Germanic (Austria, Belgium, Germany), and Nordic firms (Denmark, Finland, Norway, Sweden). Unique data is collected through structured interviews from 688 strategic business units (SBUs) in these countries. We find differences across cultural regions with regard to how managers delegate decision rights to their subordinates, establish multidimensional reporting lines, involve subordinates in cross-functional tasks, and involve subordinates in strategic planning activities. We also find differences in the comprehensiveness of plans, purposes of performance measurement and evaluation, and the importance of interactively using budgets and performance measurement systems. Furthermore, we find differences in the nature and bases of rewards and variable compensation. Regarding cultural controls, differences are identified in recruitment and socialization practices. Implications of these and other findings for both theory development and practice are discussed.

AB - This study addresses differences in management control practices in Anglo-Saxon (Australia, Canada), Germanic (Austria, Belgium, Germany), and Nordic firms (Denmark, Finland, Norway, Sweden). Unique data is collected through structured interviews from 688 strategic business units (SBUs) in these countries. We find differences across cultural regions with regard to how managers delegate decision rights to their subordinates, establish multidimensional reporting lines, involve subordinates in cross-functional tasks, and involve subordinates in strategic planning activities. We also find differences in the comprehensiveness of plans, purposes of performance measurement and evaluation, and the importance of interactively using budgets and performance measurement systems. Furthermore, we find differences in the nature and bases of rewards and variable compensation. Regarding cultural controls, differences are identified in recruitment and socialization practices. Implications of these and other findings for both theory development and practice are discussed.

KW - Management control package

KW - Management control systems

KW - National culture

KW - Survey

KW - Management control package

KW - Management control systems

KW - National culture

KW - Survey

M3 - Article in proceedings

T3 - EIASM Conference Proceedings Series

BT - 10th Conference on New Directions in Management Accounting

A2 - Lukka, Kari

A2 - Shields, Michael

PB - European Institute for Advanced Studies in Management

CY - Bruxelles

Y2 - 14 December 2016 through 16 December 2016

ER -

Malmi T, Ax C, Bedford D, Bednarek P, Brühl R, Dergård J et al. The Use of Management Controls in Different Cultural Regions: An Empirical Study of Anglo-Saxon, Germanic and Nordic Practices. In Lukka K, Shields M, editors, 10th Conference on New Directions in Management Accounting: Innovations in Practice and Research. Bruxelles: European Institute for Advanced Studies in Management. 2016. (EIASM Conference Proceedings Series).