Application of controllability principle in the context of structural empowerment: examining performance outcomes based on U-shaped perspective

Keita Iwasawa, Keita Masuya and Yudai Onitsuka

Asian Review of Accounting, 2025, vol. 34, issue 3, 555-574

Abstract: PurposeThis study aims to elucidate the relationship between managers’ perceived controllability and performance in an organizational context that promotes structural empowerment.Design/methodology/approachA mixed method is used with a Japanese cram school as the research site. The qualitative study analyzes role expectations for the manager and their link to the controllability principle. The quantitative study examines the relationship between managers’ perceptions of controllability, role perceptions (role clarity and role flexibility) and performance using path analysis.FindingsFirst, the qualitative study results showed that controllability is moderated by the balance between control and empowerment. Increased controllability of the budget clarifies the role of achieving target budgets while at the same time encouraging management interest and flexibility in carrying out their role by allocating costs that are only partially determinable, such as advertising costs. Second, the quantitative study found that role clarity and role flexibility are balanced and perform better when managers perceive moderate levels of controllability. These findings consistently demonstrate the importance of balancing control and empowerment in a context that emphasizes structural empowerment.Originality/valueThis study identifies congruent levels of controllability in promoting structural empowerment within promoting contemporary organizational contexts. Using a mixed method approach, it examines the localized application of the controllability principle and its implications for selected features of the management accounting system.

Keywords: Controllability principle; Structural empowerment; Role clarity; Role flexibility; Nonlinear relationship; Mixed method (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:arapps:ara-04-2024-0111

DOI: 10.1108/ARA-04-2024-0111

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