Antecedents for defining management control system design: empirical evidence from Brazilian firms
AbstractThis work analyzes the development profile of Brazilian firms regarding management accounting attributes. Much has been written in recent years about the design of management control systems and the use of management control artifacts, but there is a relevant antecedent that has been little explored, namely the profile of these attributes, involving aspects such as scope, timeliness, integration and aggregation (Chenhall & Morris, 1986; Silvola, 2008). These attributes define, limit and expand the power for management control to act (Berry, Broadbent & Otley, 2005) and they are interdependent, since each influences the others. They are the basis on which the organization’s management model is structured and developed. Within the universe of a firm’s management control, there are various artifacts that are implemented with the aim of providing support to managers’ decision-making process, besides coordination and influence on the employees (Anthony & Govindarajan, 2002; Hansen & Mouritsen, 2007). Among the existing artifacts cited in the literature as relevant for the planning and control process are strategic planning, budgeting, capital budgeting, profitability analysis, rolling forecasting and real options. In a changing environment, the attributes can change in terms of form and amplitude, demand and utilization, implying the need for integrated and proactive review and adjustment. The impact of the adequacy of these attributes on the design and use of management control systems is so relevant that they can distort and impair this design and use. To address the theme within a consistent theoretical framework, the idea of attribute in this article is based on some classic works (Chenhall & Morris, 1986; Silvola, 2008). This is a descriptive study, developed from an exploratory perspective, looking ahead to more comprehensive development in the future, given the absence of analogous works on Brazilian firms. The study was carried out through a survey of a sample composed of 125 Brazilian firms, with the data gathered by a structured questionnaire administered over the Internet. The data were analyzed by partial least squares path modeling (PLS-PM). The results suggest that the attributes examined are related in different ways, depending on the profile of the organization’s scope, influencing the existence of some management accounting artifacts, which should be taken into account in defining or updating the management information system. In short, if a firm wants to use artifacts for management control, it should review the structuring of its attributes.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Fucape Business School in its journal Brazilian Business Review.
Volume (Year): 9 (2012)
Issue (Month): 1 (January)
Contact details of provider:
Postal: Fucape Business School Brazilian Business Review Av. Fernando Ferrari, 1358, Boa Vista CEP 29075-505 Vitória-ES
Phone: +55 27 4009-4423
Fax: +55 27 4009-4422
Web page: http://www.bbronline.com.br/
More information through EDIRC
Management control; development of Brazilian companies;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chenhall, Robert H., 2003. "Management control systems design within its organizational context: findings from contingency-based research and directions for the future," Accounting, Organizations and Society, Elsevier, vol. 28(2-3), pages 127-168.
- Henri, Jean-Francois, 2006. "Organizational culture and performance measurement systems," Accounting, Organizations and Society, Elsevier, vol. 31(1), pages 77-103, January.
- Bouwens, Jan & Abernethy, Margaret A., 2000. "The consequences of customization on management accounting system design," Accounting, Organizations and Society, Elsevier, vol. 25(3), pages 221-241, April.
- Chenhall, R. H. & Langfield-Smith, K., 1998. "The relationship between strategic priorities, management techniques and management accounting: an empirical investigation using a systems approach," Accounting, Organizations and Society, Elsevier, vol. 23(3), pages 243-264, April.
- Moores, Ken & Yuen, Susana, 2001. "Management accounting systems and organizational configuration: a life-cycle perspective," Accounting, Organizations and Society, Elsevier, vol. 26(4-5), pages 351-389.
- Simons, Robert, 1990. "The role of management control systems in creating competitive advantage: New perspectives," Accounting, Organizations and Society, Elsevier, vol. 15(1-2), pages 127-143.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sarah Lasso).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.