The Control problem discovery formula: Practical framework in MCS for research and business
DOI:
Abstract Views:
14 times
PDF Downloads:
6 times
Abstract
Purpose – This study develops a conceptual framework as a formula to systematically discover control problems within organizations by integrating organizational objectives, nature, and existing management control systems (MCS), so facilitating the solution process for research and business.
Methods – This qualitative research uses six undergraduate students’ theses on MCS from diverse organizational contexts. It is based on information analysis from collected documentation through interviews, observations, and document analysis, completed with a triangulation method to minimize bias. Then, we do synthesis and exploration to construct an effective framework for discovering control problems.
Findings – The study highlights that control problems often arise from misaligned objectives, organizational and cultural complexities, and deficiencies in MCS design and implementation. The proposed framework, as a formula, can connect organizational goals, nature, and MCS through iterative feedback loops, enabling organizations to discover root problems effectively and facilitate the solution development process.
Implications – Practically, this framework provides an approach as a systematic formula and implemented in a structured way to help managers, researchers, and businessmen discover organizations’ control problems effectively.
Originality – This research fills gaps in the MCS literature by offering a practical formula with mechanisms to demonstrate and explain the linkages between the symptoms of control problems and their root causes.
Downloads
References
Ammar, S., & Hassan, M. K. (2024). Entrepreneurial Cognitive Styles And Configurations Of Management Control Systems In Smes (Pp. 145–191). https://doi.org/10.1108/s1474-787120240000036006
Anthony, R. N. (1965). Planning And Control Systems: A Framework For Analysis. Boston: Harvard University.
Baird, K., Su, S., & Munir, R. (2019). Levers Of Control, Management Innovation And Organisational Performance. Pacific Accounting Review, 31(3), 358–375. https://doi.org/10.1108/par-03-2018-0027
Baird, K., Tung, A., & Moses, A. (2023). The Corporate Social Responsibility Disclosure-Action Portrayal Gap: The Influence Of Management Control Systems And The Association With Organisational Performance (Pp. 83–116). https://doi.org/10.1108/s1474-787120220000034004
Bauer, P., & Greiling, D. (2024). Management Controls For Contributing To The Promotion Of Sustainable Development In Public Sector Organizations—Status Quo And Further Research. Sustainable Development. https://doi.org/10.1002/sd.3292
Bedford, D. S. (2020). Conceptual And Empirical Issues In Understanding Management Control Combinations. Accounting, Organizations And Society, 86, 101187. https://doi.org/10.1016/j.aos.2020.101187
Bedford, D. S., Malmi, T., & Sandelin, M. (2016). Management Control Effectiveness And Strategy: An Empirical Analysis Of Packages And Systems. Accounting, Organizations And Society, 51, 12–28. https://doi.org/10.1016/j.aos.2016.04.002
Burghardt, J., & Möller, K. (2023). The Use Of Management Controls To Enhance The Perception Of Meaningful Work – A Systematic Literature Review And Conceptional Model Development. Journal Of Accounting Literature, 45(2), 209–255. https://doi.org/10.1108/jal-07-2022-0073
Chapman, C. S., Grabner, I., & Moers, F. (2020). Introduction To The AOS Special Issue On Management Control As System Or Package. Accounting, Organizations And Society, 86, 101194. https://doi.org/10.1016/j.aos.2020.101194
Chenhall, R. H., & Moers, F. (2015). The Role Of Innovation In The Evolution Of Management Accounting And Its Integration Into Management Control. Accounting, Organizations And Society, 47, 1–13. https://doi.org/10.1016/j.aos.2015.10.002
Cooper, C. (2015). Entrepreneurs Of The Self: The Development Of Management Control Since 1976. Accounting, Organizations And Society, 47, 14–24. https://doi.org/10.1016/j.aos.2015.10.004
Deore, A., Gallani, S., & Krishnan, R. (2023). The Effect Of Systems Of Management Controls On Honesty In Managerial Reporting. Accounting, Organizations And Society, 105, 101401. https://doi.org/10.1016/j.aos.2022.101401
Efferin, S. (2016). Sistem Pengendalian Manajemen Berbasis Spiritualitas. Jakarta: Rumah Peneleh.
Efferin, S., & Hopper, T. (2007). Management Control, Culture And Ethnicity In A Chinese Indonesian Company. Accounting, Organizations And Society, 32(3), 223–262. https://doi.org/10.1016/j.aos.2006.03.009
Efferin, S., & Pontjoharyo, W. (2006). Chinese Indonesian Business In The Era Of Globalization: Ethnicity, Culture And The Rise Of China. In Southeast Asia’s Chinese Businesses In An Era Of Globalization: Coping With The Rise Of China (Pp. 102–161). ISEAS–Yusof Ishak Institute. https://www.cambridge.org/core/product/0cc927f176dbaa9b0d1aed5763fc4e90
Efferin, S., & Soeherman, B. (2010). Seni Perang Sun Zi Dan Sistem Pengendalian Manajemen: Filosofi Dan Aplikasi. Jakarta: Elex Media Komputindo.
El Masri, T., Tekathen, M., Magnan, M., & Boulianne, E. (2017). Calibrating Management Control Technologies And The Dual Identity Of Family Firms. Qualitative Research In Accounting & Management, 14(2), 157–188. https://doi.org/10.1108/qram-05-2016-0038
Eriksson, K., Häyrén, A., & Wittbom, E. (2024). Management Control Shaping Dialogues: Attaching Differences And Reducing The Scope Of Dialogs And Pluralism. Financial Accountability & Management. https://doi.org/10.1111/faam.12417
Fullerton, R. R., Kennedy, F. A., & Widener, S. K. (2013). Management Accounting And Control Practices In A Lean Manufacturing Environment. Accounting, Organizations And Society, 38(1), 50–71. https://doi.org/10.1016/j.aos.2012.10.001
Henri, J.-F. (2006). Management Control Systems And Strategy: A Resource-Based Perspective. Accounting, Organizations And Society, 31(6), 529–558. https://doi.org/10.1016/j.aos.2005.07.001
Jukka, T., & Pellinen, J. (2020). Exploring Management Control System Typologies: An Organisation-Level View. Journal Of Accounting & Organizational Change, 16(3), 427–445. https://doi.org/10.1108/jaoc-11-2019-0116
King, R., & Clarkson, P. (2015). Management Control System Design, Ownership, And Performance In Professional Service Organisations. Accounting, Organizations And Society, 45, 24–39. https://doi.org/10.1016/j.aos.2015.06.002
Kornacker, J., Trapp, R., & Ander, K. (2018). Rejection, Reproduction And Reshaping – A Field Study On Global Budget Control Practices In Multinational Companies. Qualitative Research In Accounting & Management, 15(1), 24–52. https://doi.org/10.1108/qram-02-2017-0011
Kraus, K., Kennergren, C., & Von Unge, A. (2017). The Interplay Between Ideological Control And Formal Management Control Systems – A Case Study Of A Non-Governmental Organisation. Accounting, Organizations And Society, 63, 42–59. https://doi.org/10.1016/j.aos.2016.02.001
Kurtmollaiev, S., & Aas, T. H. (2023). Repurposed: Management Control In Innovation Leadership. In Innovation Leadership In Practice: How Leaders Turn Ideas Into Value In A Changing World (Pp. 243–257). Emerald Publishing Limited. https://doi.org/10.1108/978-1-83753-396-120231013
Malmi, T., & Brown, D. A. (2008). Management Control Systems As A Package—Opportunities, Challenges And Research Directions. Management Accounting Research, 19(4), 287–300. https://doi.org/10.1016/j.mar.2008.09.003
Merchant, K. A., & Van Der Stede, W. A. (2023). Management Control Systems: Performance Measurement, Evaluation And Incentives (5th Ed.). Harlow: Pearson Education.
Neuman, W. L. (2009). Social Research Methods: Qualitative And Quantitative Approaches (7th Ed.). Harlow: Pearson Education Limited.
Neuman, W. L. (2019). Social Research Methods: Qualitative And Quantitative Approaches (8th Ed.). Harlow: Pearson Education Limited.
P N, S., & Kunnathur, A. S. (2015). Information Security In Supply Chains: A Management Control Perspective. Information & Computer Security, 23(5), 476–496. https://doi.org/10.1108/ics-07-2014-0050
Pagliarussi, M. S., & Leme, M. A. (2020). The Institutionalization Of Management Control Systems In A Family Firm. Qualitative Research In Accounting & Management, 17(4), 649–673. https://doi.org/10.1108/qram-12-2019-0128
Pfister, J. A., Peda, P., & Otley, D. (2023). A Methodological Framework For Theoretical Explanation In Performance Management And Management Control Systems Research. Qualitative Research In Accounting & Management, 20(2), 201–228. https://doi.org/10.1108/qram-10-2021-0193
Sekaran, U., & Bougie, R. (2019). Research Methods For Business: A Skill Building Approach (Vol. 8th). West Sussex: Wiley.
Simons, R. (1994). How New Top Managers Use Control Systems As Levers Of Strategic Renewal. Strategic Management Journal, 15(3), 169–189. http://www.jstor.org/stable/2486965
Soeherman, B. (2017). Ramayana Walmiki: Eksplorasi Holistik Sistem Pengendalian Manajemen. Jurnal Akuntansi Multiparadigma. https://doi.org/10.18202/jamal.2017.04.7040
Sridharan, V. G. (2020). Methodological Insights Theory Development In Qualitative Management Control: Revisiting The Roles Of Triangulation And Generalization. Accounting, Auditing & Accountability Journal, 34(2), 451–479. https://doi.org/10.1108/aaaj-09-2019-4177
Tucker, B. P., & Alewine, H. C. (2024). Like A Phoenix From The Ashes: Management Control And Organizational Resilience During NASA’s Apollo And Space Shuttle Programs. Abacus. https://doi.org/10.1111/abac.12325
Voyant, O., Bonnet, M., Tabchoury, P., & Datry, F. (2017). Contribution Of The Socio-Economic Management Control To Steering Balanced And Sustainable Company Overall Performance. Society And Business Review, 12(2), 216–234. https://doi.org/10.1108/sbr-11-2016-0067
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
- Copyright on articles is retained by the respective author(s), without restrictions. A non-exclusive license is granted to Akuntansi dan Teknologi Informasi (JATI) to publish the article and identify itself as its original publisher, along with the commercial right to include the article in a hardcopy issue for sale to libraries and individuals.
- Articles published in Akuntansi dan Teknologi Informasi (JATI) are licensed under a Creative Commons Attribution-ShareAlike 4.0 International license. You are free to copy, transform, or redistribute articles for any lawful purpose in any medium, provided you give appropriate credit to the original author(s) and the journal, link to the license, indicate if changes were made, and redistribute any derivative work under the same license.
- By publishing in Akuntansi dan Teknologi Informasi (JATI), authors grant any third party the right to use their article to the extent provided by the Creative Commons Attribution-ShareAlike 4.0 International license.
