IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Management control systems in Finnish technology companies: search for a typology of MCS mix

  • Erkki K. Laitinen
  • Tom Wingren
  • William A. Nixon
Registered author(s):

    The purpose of the paper is to search for a typology of management control system mix (MCSM) in 110 Finnish technology firms. MCSM is considered as a portfolio of management control mechanisms. In a MCSM, single systems are implemented and changed as a package. Instead of analysing such single systems, this paper is focused on a mix (package) of such systems that forms a more natural entity of controls. These MCSMs are assumed different for firms with different organisational characteristics. The paper is organised as follows. First, hypotheses on the relationship between background (organisational) variables and the implementation of and changes in MCSMs are presented. Second, a postal survey of MCSs is performed and responded by 110 firms. Third, the proposed hypotheses are tested for each single MCS by simple statistical tests. Fourth, typologies of MCSM implementation and change are searched by the factor analysis to empirically find out typical combinations of MCSs. Fifth, the extracted hypotheses are tested for the factor scores associated with MCSMs. The analysis showed that there are four basic types of MCSMs for implementation and change. These types are associated with different mixes of MCSs and affected by different organisational variables. The MCSMs for change found by the factor analysis can be classified in the following control packages: value-based management systems (change), performance measurement and improvement systems (change), activity- and process-based management systems (change) and production planning systems (change). For implementation, the third mix was merely entitled as time- and activity-based management system (implementation) while all other MCSMs were similar. Of all the organisational variables, only the size of the organisation proved to be statistically significant for all the types (MCSMs).

    If 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.

    File URL: http://www.inderscience.com/link.php?id=4765
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Accounting, Auditing and Performance Evaluation.

    Volume (Year): 1 (2004)
    Issue (Month): 2 ()
    Pages: 183-214

    as
    in new window

    Handle: RePEc:ids:ijaape:v:1:y:2004:i:2:p:183-214
    Contact details of provider: Web page: http://www.inderscience.com/browse/index.php?journalID=41

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ids:ijaape:v:1:y:2004:i:2:p:183-214. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graham Langley)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.