Management control packages in family businesses: a configurational approach
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Management control packages in family businesses: a configurational approach Stefanie Einhorn1 · Xaver Heinicke1 · Thomas W. Guenther1
© The Author(s) 2020
Abstract This study uses survey data from top managers to explore how operational (e.g., cost types and cost center accounting) and strategically oriented (e.g., strategic and business planning) management accounting (MA) practices, diagnostic and interac‑ tive use of performance measures, and cultural controls are combined (management control package) to achieve high firm performance in family businesses (FBs). In previous research, such management control (MC) packages have received limited attention even though they offer an opportunity to reveal more information on the adoption of MA practices, use of performance measures, and MCs in FBs than anal‑ yses of individual control mechanisms. We chose a qualitative comparative analysis (QCA) because this method allows for explicitly addressing the three major chal‑ lenges of configurational theory: asymmetry, conjunctional causation, and equifinal‑ ity. By applying QCA, our study identifies six equifinal MC packages (i.e., differ‑ ent configurations of MA practices, types of use, and cultural controls with similar associations with firm performance) and, thus, provides an exploratory approach to describe more complex MA and MC designs that are empirically observable. By further analyzing these MC packages with additional information on the intensity of competition, the intensity of attention focusing, the interpretation of information by top management, and the organizational culture, this study extends the existing literature on FBs. The key finding of our analysis is that, regardless of their busi‑ ness environment, successful FBs place a very strong emphasis on cultural controls and/or have a high degree of interactive use of performance measures to steer their business. Keywords Management control package · Family business · Configurational research · Qualitative comparative analysis · Firm performance JEL Classification M10 · M14 · M21 · M41
* Thomas W. Guenther Thomas.Guenther@tu‑dresden.de Extended author information available on the last page of the article
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1 Introduction Management accounting (MA) and management controls (MCs) enable more effec‑ tive management of businesses and, thus, are considered essential elements and crucial factors in the creation of a competitive advantage and, ultimately, firm per‑ formance (Simons 1995; Chenhall 2003). “MA refers to a collection of practices […]”1 (Chenhall 2003, p. 129). In our study, we define MA practices as operational (e.g., cost type accounting and cost center accounting) and strategically oriented (e.g., strategic and business planning) tools that can provide management with the information necessary to better plan and assess actions, subsequently anticipate the future, and support decision making (Roberts and Scapens 1985; Chenhall 2003). The distinction between operational and strategically oriented MA
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