Use of Management Control as a Stimulus for Organizational Resilience: Single-Entity Survey in a Petroleum Derivatives Company
DOI:
https://doi.org/10.14392/asaa.2023160308Keywords:
Organizational Resilience, Management Control System, Survey Single Entity, Resilience Management, Strategic ResilienceAbstract
Purpose: The paper aims to investigated how the use of the Management Control System influences in the management of organizational resilience in a Brazilian company.
Method: A survey single entity developed in a Brazilian oil derivative trading company with structure, size and management control system required for the research. The data were collected based on a questionnaire sent to executives from different department For data analysis, the structural model was estimated using the partial least squares method (PLS-PM - Partial Least Squares Path Modeling).
Results: The results support the hypothesis that the use of the management control system has a positive impact on the strategic. Thus, it was observed that high levels of the use of the management control system in the forms of beliefs systems, boundary systems, diagnostic control system and interactive control system increase the organization's capacity for resilience by acting in a proactive way, with strategic vision facing the business context's adversities, providing the strategic renewal proposed by Simons (1995).
Contributions: The theoretical contribution lies in the development of a model that aims to assist organizations in managing organizational resilience through management control systems. The use of the priority map for data analysis brought a practical point of view, this helps managers to decide which pattern of control best fits the circumstances in which they operate and their strategic challenges, contribute to understanding how the use of management control system impacts on the resilience in the organizational environment.
Downloads
References
Acquaah, M. (2013). Management control systems, business strategy and performance: a comparative analysis of family and non-family businesses in a transition economy in Sub-Saharan Africa. Journal of Family Business Strategy, 4, 131-146. http://doi.org/10.1016/j.jfbs.2013.03.002.
Acquaah, M., Amoako-Gyampah, K., & Jayaram, J. (2011). Resilience in family and nonfamily firms: an examination of the relationships between manufacturing strategy, competitive strategy and firm performance. International Journal of Production Research, 49(18), 5527-5544. https://doi.org/10.1080/00207543.2011.563834
Aguiar, A. B., Pace, E. S. U., & Frezatti, F. (2009). Análise do inter-relacionamento das dimensões da estrutura de sistemas de controle gerencial: um estudo piloto. Rac-Eletrônica, 3(1), 1-21. Retrieved from http://www.anpad.org.br/periodicos/arq_pdf/a_831.pdf
Akgün, A. E., & Keskin, H. (2014, September). Organisational resilience capacity and firm product innovativeness and performance. International Journal of Production Research, 52(23), 6918-6937. https://doi.org/10.1080/00207543.2014.910624
Alves, B. C., Zonatto, V. C. S., Machado, F. S., Marquezan, L. H. F., & Flores, J. S. (2022). Influência do sistema de controle gerencial e do compartilhamento de informações na resiliência organizacional. Revista de Contabilidade do Mestrado em Ciências Contábeis da UERJ, 27(3), 36-56. Retrieved from http://www.atena.org.br/revista/ojs-2.2.3-08/index.php/UERJ/article/view/3822/2880
Anderson, S. W., & Widener, S. K. (2006). Doing quantitative field research in management accounting. Handbooks of Management Accounting Research, 1, 319-341. https://doi.org/10.1016/S1751-3243(06)01012-1
Annarelli, A., & Nonino, F. (2016). Strategic and operational management of organizational resilience: current state of research and future directions. Omega, 62, 1-18. http://doi.org/10.1016/j.omega.2015.08.004
Anthony, R. N., & Govindarajan, V. (2008). Sistemas de controle gerencial. São Paulo: McGraw-Hill.
Baird, K., Su, S., & Munir, R. (2023). The mediating role of levers of controls on the association between sustainable leadership and organisational resilience. Journal of Manag Control, 34, 167–200. https://doi.org/10.1007/s00187-023-00354-1
Berry, A. J., Broadbent, J., & Otley, D. (2005). Management control: theories, issues and performance. (2nd ed.). New York: Palgrave Macmillan, 2005.
Beuren, I. M., & Santos, V. (2019). Sistema de controle gerencial habilitantes e coercitivos e resiliência organizacional. Revista Contabilidade e Finanças 30(81), 307-323. https://doi.org/10.1590/1808-057x201908210
Beuren, I. M., Santos, V., & Bernd, D. C. (2020). Efeitos do sistema de controle gerencial no empowerment e na resiliência organizacional. Brazilian Business Reviw 17(2), 211–232. https://doi.org/10.15728/bbr.2020.17.2.5
Bhamra, R., Dani, S., & Burnard, K. (2011). Resilience: the concept, a literature review and future directions. International Journal of Production Research, 49(18), 5375-5393. http://doi.org/10.1080/00207543.2011.56382
Brown, T. A. (2006). Confirmatory factor analysis for applied research. New York: The Guilford Press.
Burnard, K., & Bhamra, R. (2011). Organisational resilience: development of a conceptual framework for organisational responses. International Journal of Production Research, 49(18), 5581-5599. https://doi.org/10.1080/00207543.2011.563827
Cavalcante, M. M. (2013). Engajamento no trabalho, bem-estar no trabalho e capital psicológico: um estudo com profissionais da área de gestão de pessoas. (Dissertação de mestrado em Gestão de Organizações). Universidade Metodista de São Paulo, São Bernardo do Campo.
Chen, C. X., Lill, J. B., & Vance, T. W. (2014). Why do we work? empirical evidence on work motivation and the effects of management control system design on work motivation. In AAA 2015 Management Accounting Section (MAS) Meeting. December 1, 2014. http://dx.doi.org/10.2139/ssrn.2481153
Chin, W. W., Thatcher, J. B, Wright, R. T., & Steel, D. (2013, Springer). Controlling for common method variance in PLS analysis: the measured latent marker variable approach. In. H. Abdi et al. (Eds.). New perspectives in partial least squares and related methods. Proceedings at 56 Mathematics & Statistics. (pp. 231-239). New York Science+Business Media. https://doi.org/10.1007/978-1-4614-8283-3_16
Cohen, J. (1977). Statistical power analysis for the behavioral sciences. (Revised edition). New York: Academic Press.
Cordeiro, H. T. D., & Albuquerque, L. G. (2016). Validação da escala de atitudes de carreira sem fronteiras e carreira proteana no Brasil. Revista de Carreiras e Pessoas (ReCaPe), 6(2), 118-137 https://doi.org/10.20503/recape.v6i2.29409
Davila, A., & Foster, G. (2008). The adoption and evolution of management control systems in entrepreneurial companies: evidence and a promising future. Handbooks of Management Accounting Research, 3, 1323-1336. http://doi.org/10.1016/S1751-3243(07)03006-4
Davila, A., Foster, G., & Li, M. (2009). Reasons for management control systems adoption: insights from product development systems choice by early-stage entrepreneurial companies. Accounting, Organizations and Society, 34(3-4), 322-347. https://doi.org/10.1016/j.aos.2008.08.002
Faul, F., Erdfelder, E., Lang, A. G., & Buchner, A. (2007). G* Power 3: a flexible statistical power analysis program for the social, behavioral, and biomedical sciences. Behavior Research Methods, 39(2), 175-191. https://doi.org/10.3758/BF03193146
Frare, A. B., Leite, F. K., Cruz, A. P. C. da, & D’Avila, L. C. (2023). Mecanismos de controle gerencial, imprevisibilidade ambiental e resiliência organizacional. Revista Contabilidade & Finanças, 34(91). https://doi.org/10.1590/1808-057x20221677.pt
Hair, J. F., Jr., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Los Angeles: SAGE Publications.
Hamel, G., & Välikangas, L. (2003). The quest for resilience. Harvard Business Review, 81(9), 52. Retrieved from https://hbr.org/2003/09/the-quest-for-resilience
Lee, A. V., Vargo, J., & Seville, E. (2013, February). Developing a tool to measure and compare organizations’ resilience. Natural Hazards Review, 14(1), 29-41. https://doi.org/10.1061/(ASCE)NH.1527-6996.0000075
Lengnick-Hall, C. A., & Beck, T. E. (2005). Adaptive fit versus robust transformation: how organizations respond to environmental change. Journal of Management, 31(5), 738-757. Retrieved from http://doi.org/10.1177/0149206305279367
Lengnick-Hall, C. A., & Beck, T. E. (2009). Resilience capacity and strategic agility: prerequisites for thriving in a dynamic environment. In C. Nemeth, E. Hollnagel, & S. Dekker (Eds.). Preparation and restoration. (pp. 39-70). Aldershot UK: Ashgate Publishing.
Lengnick-Hall, C. A., Beck, T. E., & Lengnick-Hall, M. L. (2011). Developing a capacity for organizational resilience through strategic human resource management. Human Resource Management Review, 21(3), 243-255. http://doi.org/10.1016/j.hrmr.2010.07.001
McManus, S., Seville, E., Brunsdon, D., & Vargo, J. (2007). Resilience management: a framework for assessing and improving the resilience of organizations executive summary. New Zealand: Research Report, Resilient Organizations Programme.
Mikulić, J., Prebežac, D., & Dabić, M. (2016). Importance-performance analysis: common misuse of a popular technique International Journal of Market Research, 58(6), 775-778. https://doi.org/10.2501/IJMR-2016-051
Mucci, D. L. M., Frezatti, F., & Dieng, M. (2016). As múltiplas funções do orçamento empresarial. RAC, 20(3), 283-304. http://dx.doi.org/10.1590/1982-7849rac2016140121
Nascimento, R. M. C. S. V. (2014). Resiliência estratégica: uma contribuição para o desenvolvimento das organizações. (Tese de doutorado. Faculdade de Ciências e Tecnologia, Universidade Nova de Lisboa), Lisboa, Portugal.
Ringle, C. M., Wende, S., & Becker, J. M. (2015). "SmartPLS 3." Boenningstedt: SmartPLS GmbH. http://www.smartpls.com
Salgado, C. O. M. (2013). Componentes da resiliência organizacional. (Dissertação de mestrado. Universidade do Minho), Braga, Portugal.
Simons, R. (1995). Levers of control: how managers use innovative control systems to drive strategic renewal. Boston, Massachusetts: Harvard Business School Press.
Simons, R. (2000). Performance measurement and control systems for implementing strategy. New Jersey: Prentice Hall PTR.
Starr, R., Newfrock, J., & Delurey, M. (2003, Spring). Enterprise resilience: managing risk in the networked economy. Strategy and Business, (30), 70-79. https://www.strategy-business.com/article/8375
Stephenson, A. (2010). Benchmarking the resilience in organizations. (Thesis PhD. University of Canterbury), New Zealand.
Van der Stede, W. A., Young, S. M., & Chen, C. X. (2005). Assessing the quality of evidence in empirical management accounting research: the case of survey studies. Accounting, Organizations and Society, 30(7), 655-684. https://doi.org/10.1016/j.aos.2005.01.003
Weick, K. E., & Sutcliffe, K. M. (2007). Managing the unexpected: resilient performance in an age of uncertainty (2nd ed.). San Francisco, CA: Jossey-Bass.
Whitehorn, G. (2011). Building business resilience. Keeping Good Companies, 63(7), 402-405.
Widener, S. K. (2007). An empirical analysis of the levers of control framework. Accounting, Organizations and Society, 32(7-8), 757-788. http://doi.org/10.1016/j.aos.2007.01.001
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Daiana Bragueto Martins, Fábio Frezatti
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Copyright for articles published in the ASAA Journal is held by the author, with first publication rights to the journal. By virtue of appearing in this publicly accessible journal, the articles are free to use, with their own attributions, in educational and non-commercial applications. The ASAA Journal will allow the use of published works for non-commercial purposes, including the right to submit the work to publicly accessible databases. Published articles are the authors' full and exclusive responsibility. There are no submission/publishing charges or fees for processing articles (APC).
