Skip to main content
Book cover

Integrated Science pp 419–438Cite as

Rethinking Managerial Control in the Contemporary Context

  • 872 Accesses

Part of the Integrated Science book series (IS,volume 1)

Summary

Classical managerial control theories mostly focus on performance indicators, like the number of pieces produced. More recent theories focus on behavior control. All theories are specialized in controlling a specific unit of the firm, i.e., the employee, the team, or a subsystem. Therefore, agency theory-based control and system-based control have their limits. In this chapter, we advocate for a more holistic approach that takes into account the culture of the firm but also of the geographic region studied. Indigenous research is presented as a possible way to improve managerial control and harmonize western and eastern countries’ views on managerial control (we take several examples from North America, Europe, and China). We also propose a general guideline for conducting indigenous research on managerial control. Finally, we raise some concerns about the risk of using control to spread specific ideologies in firms that can be harmful in the long run. The concept map of the chapter

The code of this chapter is 01101001 01110100 01110010 01101110 01101100 01100001 01110100 01101001 01101111 01101110 01100101 01101111 01101110 01101110 01100001 01111010 01001001 01101001 01100001 01110100.

Keywords

  • Indigenous research
  • Managerial control
  • Managerial systems
  • Performance
  • Theories of the firm

“The goal of management control systems is to implement organizational strategies . Organizations that are able to efficiently meet their strategic objectives are the best performers in the long run.”

Robert Newton Anthony

This is a preview of subscription content, access via your institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • DOI: 10.1007/978-3-030-65273-9_20
  • Chapter length: 20 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
USD   189.00
Price excludes VAT (USA)
  • ISBN: 978-3-030-65273-9
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book
USD   249.99
Price excludes VAT (USA)
Hardcover Book
USD   249.99
Price excludes VAT (USA)
Learn about institutional subscriptions

References

  1. Burger-Helmchen T, Hussler C, Muller P (2019) Management. Vuibert, Paris

    Google Scholar 

  2. Bollinger SR (2020) Creativity and forms of managerial control in innovation processes: tools, viewpoints and practices. Eur J Innov Manag 23:214–229. https://doi.org/10.1108/EJIM-07-2018-0153

    CrossRef  Google Scholar 

  3. Hatch M-J (2018) Organization theory: modern, symbolic, and postmodern perspectives, 4th ed. Oxford University Press, Oxford

    Google Scholar 

  4. Tannenbaum AS (1968) Control in organizations. McGraw-Hill, New York

    Google Scholar 

  5. Heraud J-A, Kerr F, Burger-Helmchen T (2019) Creative management of complex systems, 1st edn. Wiley-ISTE, Hoboken, NJ

    Google Scholar 

  6. Vimrová H (2017) Management control systems through the lens of the agency theory. In: Procházka D (ed) New trends in finance and accounting. Springer Proceedings in Business and Economics. Springer, Cham

    Google Scholar 

  7. Elkington R (2018) Leadership decision-making leveraging big data in vuca contexts. J Leadersh Stud 12:66–70. https://doi.org/10.1002/jls.21599

    CrossRef  Google Scholar 

  8. Burger-Helmchen T, Llerena P (2008) A case study of a creative start-up: governance, communities and knowledge management. J Innov Econ 1:127–148

    Google Scholar 

  9. Besanko D, Dranove D, Shanley M, et al (2017) Management stratégique : principes économiques fondamentaux pour manager. De Boeck université

    Google Scholar 

  10. Lecorche V, Burger-Helmchen T (2019) L’influence du lieu dans l’acquisition de compétences entrepreneuriales: le cas du séminaire BEST. La Revue des Sciences de Gestion 299–300:13–26. https://doi.org/10.3917/rsg.299.0013

    CrossRef  Google Scholar 

  11. Dechamp G, Szostak B (2016) Organisational creativity and the creative territory: the nature of influence and strategic challenges for organisations. Management 19:61–88

    Google Scholar 

  12. Lill P, Wald A, Munck JC (2020) In the field of tension between creativity and efficiency: a systematic literature review of management control systems for innovation activities. Eur J Innov Manag. https://doi.org/10.1108/EJIM-11-2019-0329 (ahead-of-print)

    CrossRef  Google Scholar 

  13. Adler PS, Chen CX (2011) Combining creativity and control: understanding individual motivation in large-scale collaborative creativity. Acc Organ Soc 36:63–85. https://doi.org/10.1016/j.aos.2011.02.002

    CrossRef  Google Scholar 

  14. Ecker B, van Triest S, Williams C (2013) Management control and the decentralization of R&D. J Manag 39:906–927. https://doi.org/10.1177/0149206311411507

    CrossRef  Google Scholar 

  15. Barros RS, Ferreira AMDS da C (2019) Bridging management control systems and innovation: the evolution of the research and possible research directions. Qualitative Research in Accounting & Management 16:342–372. https://doi.org/10.1108/QRAM-05-2017-0043

  16. Davila A, Epstein MJ, Manzoni J-F (2014) Performance measurement and management control: behavioral implications and human actions. Emerald Publishing Limited, Bingley

    CrossRef  Google Scholar 

  17. Cools M, Stouthuysen K, Van den Abbeele A (2017) Management control for stimulating different types of creativity: the role of budgets. J Manag Account Res 29:1–21. https://doi.org/10.2308/jmar-51789

    CrossRef  Google Scholar 

  18. Laperche B, Burger-Helmchen T (2019) Innovation: the Janus face of finance. J Innov Econ Manag 29:1–5. https://doi.org/10.3917/jie.029.0001

    CrossRef  Google Scholar 

  19. Bowman EH, Kogut BM (1995) Redesigning the firm. Oxford University Press, USA

    Google Scholar 

  20. Hart O (1995) Firms, contracts and market structure. Oxford University Press, Oxford

    CrossRef  Google Scholar 

  21. Williamson OE (1985) The economic institutions of capitalism: firms, markets, relational contracting. Free Press, New York

    Google Scholar 

  22. Cohendet P, Llerena P (2003) Routines and incentives: the role of communities in the firm. Ind Corp Change 12:271–297. https://doi.org/10.1093/icc/12.2.271

  23. Mackey JT, Deng FJ (2016) Examining the role of management control systems in the creation of an innovative culture. Int J Innov Technol Manag 13:1640002. https://doi.org/10.1142/S0219877016400022

    CrossRef  Google Scholar 

  24. Eisenhardt KM (1985) Control: organizational and economic approaches. Manage Sci 31:134–149. https://doi.org/10.1287/mnsc.31.2.134

    CrossRef  Google Scholar 

  25. Ouchi WG (1980) Markets, Bureaucracies, and Clans. Adm Sci Q 25:129–141. https://doi.org/10.2307/2392231

    CrossRef  Google Scholar 

  26. Geroski PA (1997) What can economics offer strategy? Int J Econ Bus 4:215–228

    CrossRef  Google Scholar 

  27. Anthony R, Govindarajan V, Hartmann F et al (2014) Manag Control Syst. McGraw-Hill Education, New York

    Google Scholar 

  28. Langlois RN, Foss NJ (1999) Capabilities and governance: the rebirth of production in the theory of economic organization. Kyklos 52:201

    CrossRef  Google Scholar 

  29. Hill CWL, Hitt MA, Hoskisson RE (1992) Cooperative versus competitive structures in related and unrelated diversified firms. Org Sci 3:501–521. https://doi.org/10.1287/orsc.3.4.501

  30. Baker M, Ruback RS, Wurgler J (2004) Behavioral corporate finance: a survey. Natl Bur Econ Res. http://www.nber.org/papers/w10863.pdf

  31. Winter S (1975) Optimization and evolution in the theory of the firm. In: Day RH, Groves T (eds) Adaptive economic models. Academic Press, New York, pp 730–743

    Google Scholar 

  32. Weber J, Schäffer U (2019) Is ensuring management rationality a controlling task? In: Schäffer U (ed) Behavioral controlling. Springer Fachmedien, Wiesbaden, pp 87–111

    CrossRef  Google Scholar 

  33. Barney J, Lee W (2000) Multiple considerations in making governance choices: implications of transaction cost economics, real options theory and knowledge-based theories of the firm. In: Foss NJ, Mahnke V (eds) Competence, governance, and entrepreneurship: advances in economic strategy research. Oxford University Press, Oxford, pp 304–317

    Google Scholar 

  34. Hendry J (2001) Missing the target: normative stakeholder theory and the corporate governance debate. Bus Ethics Q 11:159–176. https://doi.org/10.2307/3857875

    CrossRef  Google Scholar 

  35. Arrow KJ (1974) The limits of organization. WW Norton & Co, New York

    Google Scholar 

  36. Mintzberg H, Lampel J, Ahlstrand B (2005) Strategy safari: a guided tour through the wilds of strategic management. Free Press, New York

    Google Scholar 

  37. Burger-Helmchen T, Llerena P (2012) Creativity, human resources and organizational learning. In: Buenstorf G (ed) Evolution, organization and economic behavior. Edward Elgar Publishing, Cheltenham, pp 155–184

    Google Scholar 

  38. Ashkanasy NM, Wilderom CPM, Peterson MF (2010) The handbook of organizational culture and climate, 2nd ed. SAGE Publications, Inc, Thousand Oaks

    Google Scholar 

  39. Malmi T, Bedford DS, Brühl R, et al (2020) Culture and management control interdependence: an analysis of control choices that complement the delegation of authority in Western cultural regions. Account Organ Soc 101116. https://doi.org/10.1016/j.aos.2020.101116

  40. Ghoshal S (2005) Bad management theories are destroying good management practices. Acad Manag Learn Edu 4:75–91. https://doi.org/10.5465/amle.2005.16132558

  41. Aas TH, Breunig KJ, Hydle KM, Pedersen PE (2015) Innovation management practices in production intensive service firms. Int J Innov Mgt 19:1550055. https://doi.org/10.1142/S1363919615500553

    CrossRef  Google Scholar 

  42. Neukam M, Guittard C (2018) Reach for the stars: knowledge sharing in international organizations. J Innov Econ Manag 27:9–35. https://doi.org/10.3917/jie.027.0009

    CrossRef  Google Scholar 

  43. Neukam MN (2017) Managing the fuzzy front-end in multicultural teams. Eur J Innov Manag 20:578–598. https://doi.org/10.1108/EJIM-11-2016-0112

    CrossRef  Google Scholar 

  44. Weick KE (2009) Making sense of the organization: the impermanent organization. Wiley, Hoboken

    Google Scholar 

  45. Demartini C (2013) Performance management systems. Springer publisher, Berlin

    Google Scholar 

  46. Otley D (2018) A complexity view of managerial control systems. J Manag Account

    Google Scholar 

  47. Jing R, Ven AH (2011) Indigenous management research in China from an engaged scholarship perspective. Manag Organ Rev 8:123–137

    Google Scholar 

  48. Leung K (2009) Never the Twain shall meet? Integrating Chinese and western management research. Manag Organ Rev 5:121–129. https://doi.org/10.1111/j.1740-8784.2008.00135.x

    CrossRef  Google Scholar 

  49. Li J, Zhang Q, Wang X (2018) Leader humility and constructive voice behavior in China: a dual process model. Int J Manpow 39:840–854

    CrossRef  Google Scholar 

  50. Li PP, Leung K, Chen CC, Luo J-D (2012) Indigenous research on Chinese management: what and how. Manag Organ Rev 8:7–24. https://doi.org/10.1111/j.1740-8784.2012.00292.x

    CrossRef  Google Scholar 

  51. Van de Ven AH (2007) Engaged scholarship: a guide for organizational and social research. Oxford University Press, Oxford

    Google Scholar 

  52. Eisenhardt KM (1989) Building theories from case study research. Acad Manag Rev 14:532–550

    CrossRef  Google Scholar 

  53. Ahrens T, Chapman CS (2006) Doing qualitative field research in management accounting: positioning data to contribute to theory’. Account Organ Soc 31:819–841

    CrossRef  Google Scholar 

  54. Tsui AS (2004) Contributing to global management knowledge: a case for high quality indigenous research. Asia Pac J Manag 21:491–513. https://doi.org/10.1023/B:APJM.0000048715.35108.a7

    CrossRef  Google Scholar 

  55. Van de Ven AH, Meyer AD, Jing R (2018) Opportunities and challenges of engaged indigenous scholarship. Manag Int Rev 14:449–462. https://doi.org/10.1017/mor.2018.28

    CrossRef  Google Scholar 

  56. Meyer K (2006) Asian management research needs more self-confidence’. Asia Pac J Manag 23:119–137

    CrossRef  Google Scholar 

  57. Holtbrügge FA (2013) Indigenous management research. Manag Int Rev 53:1–11. https://doi.org/10.1007/s11575-012-0160-1

    CrossRef  Google Scholar 

  58. Rindova VP, Starbuck WH (1997) Ancient Chinese theories of control. J Manag Inq 6:144–159. https://doi.org/10.1177/105649269762008

    CrossRef  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Xi’an Jiaotong-Liverpool University, Suzhou, China

    Jean-Yves Le Corre

  2. University of Strasbourg, BETA, CNRS, INRAE, 61 Avenue de la Foret Noire, 67085, Strasbourg, France

    Jean-Yves Le Corre & Thierry Burger-Helmchen

Authors
  1. Jean-Yves Le Corre
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Thierry Burger-Helmchen
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Thierry Burger-Helmchen .

Editor information

Editors and Affiliations

  1. Universal Scientific Education and Research Network (USERN), Tehran, Iran

    Prof. Nima Rezaei

Rights and permissions

Reprints and Permissions

Copyright information

© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Verify currency and authenticity via CrossMark

Cite this chapter

Le Corre, JY., Burger-Helmchen, T. (2021). Rethinking Managerial Control in the Contemporary Context. In: Rezaei, N. (eds) Integrated Science. Integrated Science, vol 1. Springer, Cham. https://doi.org/10.1007/978-3-030-65273-9_20

Download citation