Management control system effectiveness

Sophia Su, Kevin Baird and Herbert Schoch

Pacific Accounting Review, 2015, vol. 27, issue 1, 28-50

Abstract: Purpose - – This study aims to examine the association between the use of three types of controls (input, behaviour and output) with the level of employee organisational commitment (EOC) across organisational life cycle (OLC) stages. Design/methodology/approach - – Data were collected by a survey questionnaire from a random sample of 343 general managers in Australian manufacturing business units. Findings - – The level of EOC was found to be highest in growth and revival stage units, suggesting that EOC relates to the level of innovation. The analysis revealed that the types of controls were significantly associated with the level of EOC. In particular, a significant positive association was found between input controls and the level of EOC in both the birth and revival stages. Originality/value - – This study contributes to both the management control system (MCS) literature and practice. First, because only a limited number of studies have examined the effect of MCSs on the level of EOC, and there is no published study to date which has examined the association between the types of controls with the level of EOC from an OLC perspective, this study fills a gap in the literature by examining these associations. Secondly, the findings have important implications for Australian manufacturing organisations. Specifically, by providing an insight into the association between the types of controls with the level of EOC across OLC stages, the results suggest that managers of organisations in the birth and revival stage need to place greater emphasis on input controls so as to enhance the level of EOC.

Keywords: Behaviour controls; Employee organisational commitment; Input controls; Output controls (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:eme:parpps:par-06-2012-0022

DOI: 10.1108/PAR-06-2012-0022

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Pacific Accounting Review is currently edited by Professor Tom Scott, Dr Pei-Chi Kelly Hsiao, Associate Professor Chelsea Liu, Associate Professor Sophia Su, Associate Professor Thu Phuong Truong and Dr Lily Chen

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