IDEAS home Printed from https://ideas.repec.org/a/spr/metrik/v24y2014i3p241-266.html
   My bibliography  Save this article

Leadership impact on organizational commitment: the mediating role of management control systems choice

Author

Listed:
  • Christian Kleine
  • Barbara Weißenberger

Abstract

The notion of organizational commitment has been intensively discussed in many fields of contemporary management research. Current literature in the field of leadership suggests that leadership styles of top management, i.e., CEOs and business unit heads, affect the level of commitment among middle- and lower-level managers. In a parallel vein, scholars in the field of management accounting and control argue that these effects are due to an organization’s management control system. This study is aimed at closing the gap between both strands of literature and examines how leadership and management control systems interact in the process of creating organizational commitment. Building on structural equation modeling, the study extends existing knowledge by analyzing whether the relations between top management’s leadership styles, i.e., initiating structure and consideration, and organizational commitment are mediated by the use of formal and informal management control elements. Based on a sample of 294 German firms, the results suggest that informal control elements, such as personnel and cultural controls, act as hinges through which top management is able to positively transmit leadership behaviors and affect the development of organizational commitment. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Christian Kleine & Barbara Weißenberger, 2014. "Leadership impact on organizational commitment: the mediating role of management control systems choice," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 24(3), pages 241-266, January.
    • Handle: RePEc:spr:metrik:v:24:y:2014:i:3:p:241-266
    DOI: 10.1007/s00187-013-0181-3
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s00187-013-0181-3
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s00187-013-0181-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Merchant, Kenneth A., 1985. "Organizational controls and discretionary program decision making: A field study," Accounting, Organizations and Society, Elsevier, vol. 10(1), pages 67-85, January.
    2. Lee, Lorraine & Petter, Stacie & Fayard, Dutch & Robinson, Shani, 2011. "On the use of partial least squares path modeling in accounting research," International Journal of Accounting Information Systems, Elsevier, vol. 12(4), pages 305-328.
    3. John L. J. Machin, 1979. "A Contingent Methodology For Management Control," Journal of Management Studies, Wiley Blackwell, vol. 16(1), pages 1-29, February.
    4. Widener, Sally K., 2007. "An empirical analysis of the levers of control framework," Accounting, Organizations and Society, Elsevier, vol. 32(7-8), pages 757-788.
    5. Chenhall, Robert H. & Hall, Matthew & Smith, David, 2010. "Social capital and management control systems: a study of a non-government organization," LSE Research Online Documents on Economics 32980, London School of Economics and Political Science, LSE Library.
    6. Luft, Joan & Shields, Michael D., 2003. "Mapping management accounting: graphics and guidelines for theory-consistent empirical research," Accounting, Organizations and Society, Elsevier, vol. 28(2-3), pages 169-249.
    7. Widener, Sally K., 2004. "An empirical investigation of the relation between the use of strategic human capital and the design of the management control system," Accounting, Organizations and Society, Elsevier, vol. 29(3-4), pages 377-399.
    8. Govindarajan, V., 1984. "Appropriateness of accounting data in performance evaluation: An empirical examination of environmental uncertainty as an intervening variable," Accounting, Organizations and Society, Elsevier, vol. 9(2), pages 125-135, June.
    9. Dermer, J. D. & Lucas, R. G., 1986. "The illusion of managerial control," Accounting, Organizations and Society, Elsevier, vol. 11(6), pages 471-482, October.
    10. William G. Ouchi, 1979. "A Conceptual Framework for the Design of Organizational Control Mechanisms," Management Science, INFORMS, vol. 25(9), pages 833-848, September.
    11. Robert H. Chenhall & Frank Moers, 2007. "The Issue of Endogeneity within Theory-Based, Quantitative Management Accounting Research," European Accounting Review, Taylor & Francis Journals, vol. 16(1), pages 173-196.
    12. Henri, Jean-Francois, 2006. "Organizational culture and performance measurement systems," Accounting, Organizations and Society, Elsevier, vol. 31(1), pages 77-103, January.
    13. 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.
    14. Brownell, Peter, 1983. "Leadership style, budgetary participation and managerial behavior," Accounting, Organizations and Society, Elsevier, vol. 8(4), pages 307-321, October.
    15. Chenhall, Robert H. & Hall, Matthew & Smith, David, 2010. "Social capital and management control systems: A study of a non-government organization," Accounting, Organizations and Society, Elsevier, vol. 35(8), pages 737-756, November.
    16. Luft, Joan & Shields, Michael D., 2003. "Erratum to "Mapping management accounting: graphics and guidelines for theory-consistent empirical research" [Accounting Organizations and Society 28 (2003) 169-249]," Accounting, Organizations and Society, Elsevier, vol. 28(7-8), pages 815-815.
    17. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    18. Jaworski, Bernard J. & Young, S. Mark, 1992. "Dysfunctional behavior and management control: An empirical study of marketing managers," Accounting, Organizations and Society, Elsevier, vol. 17(1), pages 17-35, January.
    19. Larissa Kyj & Robert J. Parker, 2008. "Antecedents of Budget Participation: Leadership Style, Information Asymmetry, and Evaluative Use of Budget," Abacus, Accounting Foundation, University of Sydney, vol. 44(4), pages 423-442, December.
    20. Laura B. Cardinal, 2001. "Technological Innovation in the Pharmaceutical Industry: The Use of Organizational Control in Managing Research and Development," Organization Science, INFORMS, vol. 12(1), pages 19-36, February.
    21. Abernethy, Margaret A. & Brownell, Peter, 1997. "Management control systems in research and development organizations: The role of accounting, behavior and personnel controls," Accounting, Organizations and Society, Elsevier, vol. 22(3-4), pages 233-248.
    22. Chun-Hsi Chen & Setyabudi Indartono, 2011. "Study of Commitment Antecedents: The Dynamic Point of View," Journal of Business Ethics, Springer, vol. 103(4), pages 529-541, November.
    23. Dent, Jeremy F., 1990. "Strategy, organization and control: Some possibilities for accounting research," Accounting, Organizations and Society, Elsevier, vol. 15(1-2), pages 3-25.
    24. Otley, David T. & Pierce, Bernard J., 1995. "The control problem in public accounting firms: An empirical study of the impact of leadership style," Accounting, Organizations and Society, Elsevier, vol. 20(5), pages 405-420, July.
    25. Flamholtz, Eric G. & Das, T. K. & Tsui, Anne S., 1985. "Toward an integrative framework of organizational control," Accounting, Organizations and Society, Elsevier, vol. 10(1), pages 35-50, January.
    26. Bouillon, Marvin L. & Ferrier, Gary D. & Stuebs, Martin Jr. & West, Timothy D., 2006. "The economic benefit of goal congruence and implications for management control systems," Journal of Accounting and Public Policy, Elsevier, vol. 25(3), pages 265-298.
    27. Cam Caldwell & Do Truong & Pham Linh & Anh Tuan, 2011. "Strategic Human Resource Management as Ethical Stewardship," Journal of Business Ethics, Springer, vol. 98(1), pages 171-182, January.
    28. Berry, A.J. & Coad, A.F. & Harris, E.P. & Otley, D.T. & Stringer, C., 2009. "Emerging themes in management control: A review of recent literature," The British Accounting Review, Elsevier, vol. 41(1), pages 2-20.
    29. Merchant, Kenneth A., 1990. "The effects of financial controls on data manipulation and management Myopia," Accounting, Organizations and Society, Elsevier, vol. 15(4), pages 297-313.
    30. Ronald C. Anderson & David M. Reeb, 2003. "Founding-Family Ownership and Firm Performance: Evidence from the S&P 500," Journal of Finance, American Finance Association, vol. 58(3), pages 1301-1327, June.
    31. Macintosh, N. B. & Daft, R. L., 1987. "Management control systems and departmental interdependencies: An empirical study," Accounting, Organizations and Society, Elsevier, vol. 12(1), pages 49-61, January.
    32. Kida, Thomas E., 1984. "Performance evaluation and review meeting characteristics in public accounting firms," Accounting, Organizations and Society, Elsevier, vol. 9(2), pages 137-147, June.
    33. Arthur G. Jago, 1982. "Leadership: Perspectives in Theory and Research," Management Science, INFORMS, vol. 28(3), pages 315-336, March.
    34. Otley, David T., 1980. "The contingency theory of management accounting: Achievement and prognosis," Accounting, Organizations and Society, Elsevier, vol. 5(4), pages 413-428, October.
    35. Ronald C. Anderson & David M. Reeb, 2003. "Founding‐Family Ownership and Firm Performance: Evidence from the S&P 500," Journal of Finance, American Finance Association, vol. 58(3), pages 1301-1328, June.
    36. Frank Hartmann & David Naranjo-Gil & Paolo Perego, 2010. "The Effects of Leadership Styles and Use of Performance Measures on Managerial Work-Related Attitudes," European Accounting Review, Taylor & Francis Journals, vol. 19(2), pages 275-310.
    37. Erik Strauß & Christina Zecher, 2013. "Management control systems: a review," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 23(4), pages 233-268, February.
    38. Hopwood, Anthony G., 2009. "The economic crisis and accounting: Implications for the research community," Accounting, Organizations and Society, Elsevier, vol. 34(6-7), pages 797-802, August.
    39. Bisbe, Josep & Otley, David, 2004. "The effects of the interactive use of management control systems on product innovation," Accounting, Organizations and Society, Elsevier, vol. 29(8), pages 709-737, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ossi Pesämaa, 2017. "Personnel- and action control in gazelle companies in Sweden," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(1), pages 107-132, February.
    2. Emmi Tervala & Teemu Laine & Tuomas Korhonen & Petri Suomala, 2017. "The role of financial control in new product development: empirical insights into project managers’ experiences," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(1), pages 81-106, February.
    3. Christian Nitzl & Wynne W. Chin, 2017. "The case of partial least squares (PLS) path modeling in managerial accounting research," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(2), pages 137-156, May.
    4. Jordan Gašper & Miglič Gozdana & Marič Miha & Todorović Ivan, 2017. "Psychological Empowerment, Job Satisfaction and Organizational Commitment Among Lecturers in Higher Education: Comparison of Six CEE Countries," Organizacija, Sciendo, vol. 50(1), pages 17-32, February.
    5. Rogério João Lunkes & Fabricia Silva da Rosa & Januário José Monteiro & Daiane Antonini Bortoluzzi, 2020. "Interactions among Environmental Training, Environmental Strategic Planning and Personnel Controls in Radical Environmental Innovation," Sustainability, MDPI, vol. 12(20), pages 1-13, October.
    6. Cheffi, Walid & Kaleem Zahir-ul-Hassan, Muhammad & Omer Farooq, Muhammad & Baqrain, Abdelrahman & Mohamed Habib Mansour, Mourad, 2023. "Ethical leadership, management control systems and circular economy in SMEs in an emerging economy, the UAE," Journal of Business Research, Elsevier, vol. 156(C).
    7. Stefanie Einhorn & Xaver Heinicke & Thomas W. Guenther, 2021. "Management control packages in family businesses: a configurational approach," Journal of Business Economics, Springer, vol. 91(4), pages 433-478, May.
    8. Petrus Maasalo & Henri Teittinen, 2023. "A conceptual framework for exploring management control style within psychological empowerment," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 11(1), pages 1-18, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sebastian Goebel & Barbara E. Weißenberger, 2017. "Effects of management control mechanisms: towards a more comprehensive analysis," Journal of Business Economics, Springer, vol. 87(2), pages 185-219, February.
    2. Ellen Haustein & Robert Luther & Peter Schuster, 2014. "Management control systems in innovation companies: a literature based framework," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 24(4), pages 343-382, February.
    3. Klaus Derfuss, 2015. "Relating Context Variables to Participative Budgeting and Evaluative Use of Performance Measures: A Meta-analysis," Abacus, Accounting Foundation, University of Sydney, vol. 51(2), pages 238-278, June.
    4. Marc Janka & Xaver Heinicke & Thomas W. Guenther, 2020. "Beyond the “good” and “evil” of stability values in organizational culture for managerial innovation: the crucial role of management controls," Review of Managerial Science, Springer, vol. 14(6), pages 1363-1404, December.
    5. Ibrahim Bader Alharbi & Rossilah Jamil & Nik Hasnaa Nik Mahmood & Awaluddin Mohamed Shaharoun, 2023. "Transformational Leadership’s Impact on Organizational Innovation: The Mediating Role of Management Control System," Global Business Review, International Management Institute, vol. 24(6), pages 1418-1433, December.
    6. Christoph Feichter & Isabella Grabner, 2020. "Empirische Forschung zu Management Control – Ein Überblick und neue Trends [Empirical Management Control Reserach—An Overview and Future Directions]," Schmalenbach Journal of Business Research, Springer, vol. 72(2), pages 149-181, June.
    7. Andrea Fried, 2017. "Terminological distinctions of ‘control’: a review of the implications for management control research in the context of innovation," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(1), pages 5-40, February.
    8. Kennedy, Frances A. & Widener, Sally K., 2019. "Socialization mechanisms and goal congruence," Accounting, Organizations and Society, Elsevier, vol. 76(C), pages 32-49.
    9. Stefanie Einhorn & Xaver Heinicke & Thomas W. Guenther, 2021. "Management control packages in family businesses: a configurational approach," Journal of Business Economics, Springer, vol. 91(4), pages 433-478, May.
    10. 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.
    11. Van der Stede, Wim A. & Young, S. Mark & Chen, Clara Xiaoling, 2005. "Assessing the quality of evidence in empirical management accounting research: The case of survey studies," Accounting, Organizations and Society, Elsevier, vol. 30(7-8), pages 655-684.
    12. Hartmann, Frank G. H., 2000. "The appropriateness of RAPM: toward the further development of theory," Accounting, Organizations and Society, Elsevier, vol. 25(4-5), pages 451-482, May.
    13. Sebastian Goebel & Barbara Weißenberger, 2016. "The Dark Side of Tight Financial Control: Causes and Remedies of Dysfunctional Employee Behaviors," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 17(1), pages 69-101, April.
    14. Greve, Jan & Ax, Christian & Bedford, David S. & Bednarek, Piotr & Brühl, Rolf & Dergård, Johan & Ditillo, Angelo & Dossi, Andrea & Gosselin, Maurice & Hoozée, Sophie & Israelsen, Poul & Janschek, Ott, 2017. "The impact of society on management control systems," Scandinavian Journal of Management, Elsevier, vol. 33(4), pages 253-266.
    15. Sebastian Goebel & Barbara E. Weißenberger, 2017. "The Relationship Between Informal Controls, Ethical Work Climates, and Organizational Performance," Journal of Business Ethics, Springer, vol. 141(3), pages 505-528, March.
    16. Bisbe, Josep & Kruis, Anne-Marie & Madini, Paola, 2019. "Coercive, enabling, diagnostic, and interactive control: Untangling the threads of their connections," Journal of Accounting Literature, Elsevier, vol. 43(C), pages 124-144.
    17. Bedford, David S. & Malmi, Teemu & Sandelin, Mikko, 2016. "Management control effectiveness and strategy: An empirical analysis of packages and systems," Accounting, Organizations and Society, Elsevier, vol. 51(C), pages 12-28.
    18. Mundy, Julia, 2010. "Creating dynamic tensions through a balanced use of management control systems," Accounting, Organizations and Society, Elsevier, vol. 35(5), pages 499-523, July.
    19. Nikolaos Theriou & Vassilis Aggelidis, 2014. "Management Accounting Systems, Top Management Team’s Risk Characteristics and Their Effect on Strategic Change," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 3-38.
    20. Adam Maiga & Anders Nilsson & Fred Jacobs, 2014. "Assessing the impact of budgetary participation on budgetary outcomes: the role of information technology for enhanced communication and activity-based costing," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 25(1), pages 5-32, September.

    More about this item

    Keywords

    Leadership styles; Management control systems; Organizational commitment; Structural equation modeling; M10; M40;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:metrik:v:24:y:2014:i:3:p:241-266. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.