Search:
Computing and Library Services - delivering an inspiring information environment

Towards an effective design of management control systems : a contingency approach

Al-Dahiyat, Mohammed Abdul Rahim (2003) Towards an effective design of management control systems : a contingency approach. Doctoral thesis, University of Huddersfield.

[img]
Preview
PDF - Accepted Version
Download (22MB) | Preview

    Abstract

    In an attempt to provide a better understanding of MCS design, this study has utilised the
    contingency theory approach to investigate the contingent relationships between perceived
    environmental uncertainty (PEU), business strategy, organisational structure and various
    attributes of MCS simultaneously. This study has also investigated the mediating effect of two
    structural dimensions (centralisation and formalisation) on the relationship between PEU,
    business strategy and MCS design. In addition, this study has investigated the implications of fit,
    internal consistency or coalignment between the contextual variables and MCS attributes on
    organisational effectiveness, thus adopting a systems approach to fit recommended in the
    contingency literature. This study also builds on the works of Simons (1987) and Chenhall and
    Morris (1986) in terms of developing a wider and comprehensive view of MCS design. Seven
    MCS attributes have been investigated in this study including budgetary control system practices,
    budgetary control system usage, cost control systems, broad scope information, managerial
    evaluation and rewards system, aggregation and timeliness of information.

    A cross-sectional survey employing a questionnaire method of data collection was adopted. A
    total of 274 usable responses were received representing a response rate of 28%. For purposes of
    analysis, the research utilised structural equation modeling (SEM) multivariate statistical
    technique enabled by EQS 5.7 version software (Bentler, 1995). Thus, this study is one of the first
    studies in MC contingency literature to utilise SEM for validating the research constructs,
    controlling measurement error and for testing the structural relationships between the constructs
    simultaneously.

    The results of this study confirmed the multi-dimensional nature of PEU, business strategy and
    organisational structure and the differential effects each dimension has on MCS design. Also the
    results indicated that the different approaches to fit (i. e., bivariate and systems approaches)
    utilized in this research resulted in insightful findings relating the contingent relationships
    between the contextual variables and MCS attributes. In addition, the structural dimension of
    formalisation was found to have significant positive relationships with many of the MCS
    attributes and also mediated the relationship between differentiation strategy and MCS attributes
    of budgetary importance, cost control systems and non-financial performance measures.

    The results of this study also raise several implications for future MC contingency researchers
    and fill some gaps in the existing MC contingency literature. This study also contributes to the
    body of knowledge by providing guidance for future MC contingency researchers to implement
    the SEM method. SEM has a greater potential for testing theories, controlling measurement error,
    validating research constructs and testing structural relationships among multiple contextual
    variables and multiple MCS attributes simultaneously.

    Item Type: Thesis (Doctoral)
    Additional Information: EThOS Persistent ID uk.bl.ethos.273719
    Uncontrolled Keywords: Organizational structure Management, Management
    Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
    H Social Sciences > HD Industries. Land use. Labor
    Schools: The Business School
    Depositing User: Graham Stone
    Date Deposited: 22 Oct 2009 14:53
    Last Modified: 28 Jul 2010 19:48
    URI: http://eprints.hud.ac.uk/id/eprint/5939

    Document Downloads

    Downloader Countries

    More statistics for this item...

    Item control for Repository Staff only:

    View Item

    University of Huddersfield, Queensgate, Huddersfield, HD1 3DH Copyright and Disclaimer All rights reserved ©