Examining the nature of management control system interrelationships

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Volume Title
School of Economics | Master's thesis
Date
2011
Major/Subject
Accounting
Laskentatoimi
Mcode
Degree programme
Language
en
Pages
45
Series
Abstract
RESEARCH OBJECTIVES This study contributes to the literature of management control systems as a package by examining the interrelationships between the control components. Moreover, the study aims at explaining the control configuration present at a Finnish technical wholesale company and identifying what type of relationships exist between the controls and which relationships seem more crucial than others. DATA SOURCES AND RESEARCH METHOD The theoretical references of this study encompass journal articles and books discussing MCS as a package, with a specific focus on examinations on the component interrelationships. The research was executed as an explorative case study. Empirical data was primarily collected from 35 interviews between January and August 2010, all of which were recorded and transcribed. Additionally internal written materials of the case company were utilized in the analysis. RESULTS The interrelationships of MCS elements were identified and categorized as complementary and supplementary. Complementary relationships were distinguished as those between the core control components of the package, with aligned behavioral control effect. Supplementary controls support the core control package, but do not directly align the behavior. In addition, this study argues for an alternative option to rigorous cybernetics-based control configurations. KEYWORDS Management control system package, interrelationships, internal consistency, complement ACKNOWLEDGEMENTS The empirical data collection has been executed in collaboration with Mikko Sandelin (Aalto University School of Economics).
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Keywords
management control system package, interrelationships, internal consistency, complement
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