Management control systems and governance from its institutional context

Conference paper


Arian, Adam Gholami and Sands, John. (2022). Management control systems and governance from its institutional context. 2022 International Consortium for Values-Based Governance Conference : Governance in its institutional context. Melbourne 15 - 16 Dec 2022 Australia: Monash University ePress. pp. 1 https://doi.org/10.2139/ssrn.4551469
AuthorsArian, Adam Gholami and Sands, John
TypeConference paper
Abstract

This study aims to evaluate the institutional role of intangible mechanisms such as organisational values, beliefs, norms and common practices and their interaction with management control systems (MCSs) in improving corporate governance. We use the belief systems lever from Simon's levers of controls framework and more informal mechanisms to evaluate the impact of organisational initiatives on governance in response to the increasing concerns from key stakeholders. Our longitudinal study draws on data reported between 2007 and 2021 and collected from a sample of multinational listed firms across 55 countries using the triangulated approach. Based on the stakeholder approach inspired by the Global Reporting Initiative (GRI), our study recommends an innovative social management control systems (SMCS) model that supports the positive impact of promoting internal intangible control mechanisms to strengthen governance performance. Therefore, it supports the argument that other institutional elements of MCSs, beyond the traditional monitoring mechanisms, are also crucial to achieving organisational goals. Our study provides evidence of how organisations seek to achieve their objectives by creating a trusted relationship with different stakeholder groups that promote behaviour aligned with those objectives.

KeywordsManagement control systems; Levers of control; Corporate governance
Year01 Jan 2022
PublisherMonash University ePress
Digital Object Identifier (DOI)https://doi.org/10.2139/ssrn.4551469
Web address (URL)https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4551469
Open accessOpen access
Research or scholarlyResearch
Publisher's version
License
All rights reserved
File Access Level
Open
Page range1
34
Output statusPublished
Publication dates
Online15 Nov 2022
Publication process dates
Deposited10 Oct 2024
Additional information

Copyright © 2023 Elsevier Inc., its licensors, and contributors. All rights are reserved, including those for text and data mining, AI training, and similar technologies.

Place of publicationAustralia
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