Perceptions of Management Control in Post-acquisition Integration Context Through Sense-making: An Interpretive Case Study

Henri Teittinen, Jukka Pellinen and Marko Järvenpää

South Asian Journal of Business and Management Cases, 2023, vol. 12, issue 2, 222-236

Abstract: The purpose of this qualitative case study was to explore perceptions of a management control system (MCS) in a post-acquisition integration context through sense-making using interpretive case study methodology. The study draws from the theories of the two types of bureaucratic formalization, sense-making in organizations and MCSs. The study material consists of semi-structured interviews with the managers at the corporate, divisional, and business unit levels. At the time of the study, the case company was growing through several acquisitions per year, which created constant challenges with post-acquisition integration and a need for more formal MCS. The article shows how the backgrounds of the acquired business units are related to the perceptions of the MCS. We found that the identity threat and retrospection were properties of sense-making that explained the business unit managers’ attitudes towards the corporate MCS. Particularly prior experiences of production-centred line-manager positions in small entrepreneurial firms seem to foster coercive perceptions of MCS. The results of this study contribute to MCS literature.

Keywords: Management control; perception; sense-making; post-acquisition integration; case study (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:sae:sajbmc:v:12:y:2023:i:2:p:222-236

DOI: 10.1177/22779779231183024

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