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

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-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 languageEnglish
Title of host publication10th Conference on New Directions in Management Accounting : Innovations in Practice and Research
EditorsKari Lukka, Michael Shields
Number of pages56
Place of PublicationBruxelles
PublisherEuropean Institute for Advanced Studies in Management
Publication date2016
Publication statusPublished - 2016
EventThe 10th Conference on New Directions in Management Accounting - Bruxelles, Belgium
Duration: 14 Dec 201616 Dec 2016
Conference number: 10
http://www.eiasm.org/frontoffice/event_announcement.asp?event_id=1162

Conference

ConferenceThe 10th Conference on New Directions in Management Accounting
Number10
CountryBelgium
CityBruxelles
Period14/12/201616/12/2016
Internet address
SeriesEIASM Conference Proceedings Series
ISSN1998-7374

Bibliographical note

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Keywords

  • Management control package
  • Management control systems
  • National culture
  • Survey

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. EIASM Conference Proceedings Series