Malmi, Teemu, Bedford, David S, Brühl, Rolf, Dergard, Johan, Hozée, Sophie, Janschek, Otto, Willert, Jeannette, Ax, Christian, Bednarek, Piotr, Gosselin, Maurice, Hanzlick, Michael, Israelsen, Poul, Johanson, Daniel, Johanson, Tobias, Madsen, Dag Oivind, Rohde, Carsten, Sandelin, Mikko, Strömsten, Torkel, Toldbod, Thomas. 2020. Culture and management control interdependence: An analysis of control choices that complement the delegation of authority in Western cultural regions. Accounting, Organizations and Society. 86 101116

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@ARTICLE{Malmi2020,
title = {Culture and management control interdependence: An analysis of control choices that complement the delegation of authority in Western cultural regions},
author = {Teemu Malmi and David S Bedford and Rolf Brühl and Johan Dergard and Sophie Hozée and Otto Janschek and Jeannette Willert and Christian Ax and Piotr Bednarek and Maurice Gosselin and Michael Hanzlick and Poul Israelsen and Daniel Johanson and Tobias Johanson and Dag Oivind Madsen and Carsten Rohde and Mikko Sandelin and Torkel Strömsten and Thomas Toldbod},
year = {2020},
doi = {https://doi.org/10.1016/j.aos.2020.101116},
url = {http://www.sciencedirect.com/science/article/pii/S0361368218302563},
volume = {86},
language = {EN},
journal = {Accounting, Organizations and Society},
abstract = {This study examines the influence of cultural regions on the interdependence between delegation of authority and other management control (MC) practices. In particular, we assess whether one of the central contentions of agency theory, that incentive contracting and delegation are jointly determined, holds in different cultural regions. Drawing on prior literature, we hypothesise that the MC practices that operate as a complement to delegation vary depending on societal values and preferences, and that MC practices other than incentive contracting will complement delegation in firms in non-Anglo cultural regions. Using data collected from 584 strategic business units across three Western cultural regions (Anglo, Germanic, Nordic), our results show that the interdependence between delegation and incentive contracting is confined to Anglo firms. In the Nordic and Germanic regions, we find that strategic and action planning participation operate as a complement to delegation, while delegation is also complemented by manager selection in Nordic firms. Overall, our study demonstrates that cultural values and preferences significantly influence MC interdependence, and suggests that caution needs to be taken in making cross-cultural generalisations about the complementarity of MC practices.},
}

Abstract

This study examines the influence of cultural regions on the interdependence between delegation of authority and other management control (MC) practices. In particular, we assess whether one of the central contentions of agency theory, that incentive contracting and delegation are jointly determined, holds in different cultural regions. Drawing on prior literature, we hypothesise that the MC practices that operate as a complement to delegation vary depending on societal values and preferences, and that MC practices other than incentive contracting will complement delegation in firms in non-Anglo cultural regions. Using data collected from 584 strategic business units across three Western cultural regions (Anglo, Germanic, Nordic), our results show that the interdependence between delegation and incentive contracting is confined to Anglo firms. In the Nordic and Germanic regions, we find that strategic and action planning participation operate as a complement to delegation, while delegation is also complemented by manager selection in Nordic firms. Overall, our study demonstrates that cultural values and preferences significantly influence MC interdependence, and suggests that caution needs to be taken in making cross-cultural generalisations about the complementarity of MC practices.

Publication's profile

Status of publication	Published
Affiliation	WU
Type of publication	Journal article
Journal	Accounting, Organizations and Society
Citation Index	SSCI
WU Journalrating 2009	A+
Starjournal	Y
Language	English
Title	Culture and management control interdependence: An analysis of control choices that complement the delegation of authority in Western cultural regions
Volume	86
Year	2020
Page from	101116
Reviewed?	Y
URL	http://www.sciencedirect.com/science/article/pii/S0361368218302563
DOI	https://doi.org/10.1016/j.aos.2020.101116
Open Access	N

Associations

People: Janschek, Otto (Details)
External: Ax, Christian (University of Gothenburg, Sweden); Bedford, David S (UTS, Australia); Bednarek, Piotr (Wroclaw University of Economics, Poland); Brühl, Rolf (ESCP Belrin, Germany); Dergard, Johan (Lund University, Sweden); Gosselin, Maurice (Université Laval, Canada); Hanzlick, Michael (ESCP Belrin, Germany); Hozée, Sophie (Ghent University, Belgium); Israelsen, Poul (Aalborg University, Denmark); Johanson, Daniel (Norwegian Scholl of Economics, Norway); Johanson, Tobias (Örebro University, Sweden); Madsen, Dag Oivind (University college of Southeast Norway, Norway); Malmi, Teemu (Aalto University, Finland); Rohde, Carsten (CBS, Denmark); Sandelin, Mikko (University of Tampere, Finland); Strömsten, Torkel (Stockholm School of Economics, Sweden); Toldbod, Thomas (Aalborg University, Denmark); Willert, Jeannette (CBS, Denmark)
Organization: Institute for Strategy and Managerial Accounting (Speckbacher) (Details)
Research areas (ÖSTAT Classification 'Statistik Austria'): 5327 Accounting (Details); 5333 Business management (Details)

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