How clan controls and culture affect management control systems – a case study of a Finnish SME company

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School of Business | Bachelor's thesis
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Date

2024

Major/Subject

Mcode

Degree programme

Laskentatoimi

Language

en

Pages

21

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Abstract

This thesis looks at how a Finnish SME developed its management control systems (MCS), focusing on the impact of clan controls — informal controls based on shared values and social norms. Using a case study approach, the research explores how the company initially used informal practices to maintain control. As the company grew, these informal controls were gradually formalized into more structured systems. While informal clan controls can be effective in the early stages of a company’s growth, they may create challenges when transitioning to more formal management systems. Deeply rooted social norms and traditions, while valuable, might not always provide the best foundation for scalable management controls.

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Thesis advisor

Taussi, Thoman

Keywords

mcs, clan controls, accounting, culture

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