Starjournal Quotation 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


RIS


BibTeX

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.

Tags

Press 'enter' for creating the tag

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)
Google Scholar: Search