The Role of Organizational Social Capital in the Design of Management Control Systems

2018 ◽  
Vol 30 (2) ◽  
pp. 187-205 ◽  
Author(s):  
Alexander Ströbele ◽  
Paul Wentges
Keyword(s):  
Social Capital ◽  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Organizational Social Capital ◽  
Positive Effects ◽  
Social Capital Perspective ◽  
Positive Effect ◽  
Clan Control

ABSTRACT Interest in so-called “soft controls,” such as clan control, and what role they may play in designing management control systems has been growing in recent years. In particular, the conditions under which clan control and formal bureaucratic controls complement or substitute each other are the subject of an ongoing debate. The aim of this paper is to investigate the role of organizational social capital in the design of management control systems and, more specifically, to better understand the functioning of clan control. We argue that adopting a social capital perspective can help explain how clan control works and what positive effects it has on performance: organizational social capital moderates the positive effect of clan control on performance and enables organizations to use clan control and bureaucratic controls complementarily. We provide empirical evidence that supports our hypotheses and is based on survey data from 523 small and medium-sized enterprises in Germany.

Paradoxical tensions of the COVID-19 pandemic: a paradox theory perspective on the role of management control systems in helping organizations survive crises

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ralph Kober ◽  
Paul J. Thambar
Keyword(s):  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Short Term ◽  
Content Type ◽  
Strategic Objectives ◽  
Paradox Theory ◽  
Practical Implications

PurposeThis paper presents paradox theory as a useful theoretical lens for researchers exploring crises such as coronavirus disease 2019 (COVID-19). The authors argue that paradox theory, which emphasizes a “both/and” as opposed to an “either/or” approach, is ideally suited for management control systems (MCS) research on crises.Design/methodology/approachThe authors adopt a revelatory case approach to provide empirical examples of the insights that paradox theory can provide.FindingsThis paper highlights how MCS can be used to simultaneously manage short-term/operational and long-term/strategic objectives to navigate a crisis. Furthermore, it highlights how MCS can be mobilized during crises to identify and embrace opportunities.Practical implicationsThis paper illustrates the importance of MCS focusing on not just the short-term, but also the long-term, and managing multiple objectives in assisting organizations to survive crisis.Originality/valueThis paper highlights the benefits of using paradox theory to understand the role of MCS in helping organizations manage crises and to use a crisis as a source of opportunity.

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