Enabling management control systems, situated learning and intellectual capital development

Rodney Coyte

Accounting, Auditing & Accountability Journal, 2019, vol. 32, issue 4, 1073-1097

Abstract: Purpose - The purpose of this paper is to examine how an enabling management control system (MCS) affected intellectual capital (IC) development in an organisation. The study explores the effect of a change from a coercive to an enabling control system on situated learning and the development of IC. Design/methodology/approach - A case study was conducted in a large manufacturing organisation to explore the effect of a redesigned MCS on IC development. Semi-structured interviews were used to elicit understanding of the effect of the new system on situated learning and valuable local knowledge and relationship development. Findings - The enabling way in which the MCS was designed introduced empowerment and accountability for financial and operational performance at all levels of the organisational hierarchy, which stimulated situated learning in a way that developed the organisation’s IC. Originality/value - New insight is provided into the way management accounting practice can deliver valuable outcomes to organisations. First, into how MCSs design can stimulate the development of valuable local knowledge and relationships as IC. Second, into how MCS design can affect non-management employees. While prior studies have focussed on managers, this research is novel in showing how enabling controls affect non-management employees.

Keywords: Intellectual capital; Situated learning; Enabling management control systems; Non-management employees (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:aaajpp:aaaj-02-2013-1237

DOI: 10.1108/AAAJ-02-2013-1237

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