Guiding the Algorithm: Harnessing artificial intelligence to nurture SMEs management control systems

Laura Broccardo, Elisa Ballesio, Daniele Giordino and Elisa Giacosa

MANAGEMENT CONTROL, 2025, vol. 2025/1 Suppl., issue 1 Suppl., 13-36

Abstract: The diffusion of artificial intelligence (AI) amongst organizations is profoundly revolutionizing business processes, such management control (MC) practices. However, the existing literature reveals a significant gap in understanding the contribution of AI-empowered tools to management control systems (MCSs), particularly within small and medium enterprises (SMEs), where these systems are often rudimental, informal, subjective, and short-period-oriented. To address this gap, the authors employed a mixed-methods approach, featuring an open-coding and thematic analysis of AI-generated answers to MC questions related the analysis of liquidity and profitability ratios from 37 Italian SMEs, as well as a qualitative investigation, with in-depth interviews with 15 respondents, to highlight their perceptions. Our investigation is informed by the social construction of technology theory, to explore the relevant social groups, interpretative flexibility, technological frames and patterns of closure related to AI-empowered tools and their contribution to SMEs? MCSs. We connect our findings to two frames, which highlight, on the one hand the positive contribution of such tools to SMEs? MCSs through accurate and comprehensive responses; on the other hand, a negative frame highlights concerns related to inconsistency and verbosity of the answers, which may affect trust and usability. This manuscript aims to provide an overview of the possible contribution of AI-empowered tools to SMEs? MCSs. Both scholars and practitioners can benefit from the theoretical and practical implications provided, which complements the limited number of studies in the field. Future research avenues are discussed.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.francoangeli.it/riviste/Scheda_Rivista. ... 052&Tipo=ArticoloPDF (text/html)
Single articles can be downloaded buying download credits, for info: https://www.francoangeli.it/DownloadCredit

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fan:macoma:v:html10.3280/maco2025-001-s1002

Ordering information: This journal article can be ordered from
http://www.francoang ... o.aspx?IDRivista=166

Access Statistics for this article

MANAGEMENT CONTROL is currently edited by FrancoAngeli

More articles in MANAGEMENT CONTROL from FrancoAngeli Editore
Bibliographic data for series maintained by Stefania Rosato ().