Private equity firms and management control: the framing of shareholder-oriented practices

Andrea Dello Sbarba (), Riccardo Giannetti () and Alessandro Marelli ()
Additional contact information
Andrea Dello Sbarba: University of Pisa
Riccardo Giannetti: University of Pisa
Alessandro Marelli: University of Teramo

Journal of Management & Governance, 2020, vol. 24, issue 4, No 5, 953-987

Abstract: Abstract This paper seeks to respond to the call for further research into the management control mechanisms (MCMs) used in inter-organizational relationships between private equity (PE) and portfolio firms. We based our analysis on the concept of change agent developed in institutional studies and the concepts of framing and frame alignment. Drawing on a multiple case study, this paper investigates the deployment of MCMs by PE firms with the aim at promoting and sustaining the shareholder focused frame and ensuring an effective alignment of portfolio companies. The study then shifts its focus on the reasons for distinct relevance of such MCMs based on the context-specific frame. Findings show the variety of MCMs that may be used in aligning interests of portfolio firm managers, considering PE firms as a case of inter-firm relationship between interdependent actors.

Keywords: Management control mechanisms; Inter-organizational relationship; Shareholder-focused frame; Private equity; Framing (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10997-020-09501-5 Abstract (text/html)
Access to full text is restricted to subscribers.

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:kap:jmgtgv:v:24:y:2020:i:4:d:10.1007_s10997-020-09501-5

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/10997/PS2

DOI: 10.1007/s10997-020-09501-5

Access Statistics for this article

Journal of Management & Governance is currently edited by Lino Cinquini

More articles in Journal of Management & Governance from Springer, Accademia Italiana di Economia Aziendale (AIDEA) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().