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The institutionalization of management control systems in a family firm

The institutionalization of management control systems in a family firm This study aims to understand how family values, family managers and non-family managers influence the institutionalization of management control systems in family firms.Design/methodology/approachA case study was conducted in a family business group that underwent a process of adoption and transformation of its management control system.FindingsThe results indicate that several non-family managers, besides the controller, played crucial roles in harmonizing the logic of a generalized practice (quality control management) with the existing rationalities of the family firm. The authors also observed that the ISO 9001/quality control management logic together with the family values of professionalism, meritocracy and an emphasis on the business’s identity rather than the family identity have laid the groundwork for the formalization of the business group’s management controls.Practical implicationsThis study shows that quality control management is an accessible source of guidance for the formalization of managerial activities within an organization.Originality/valueThis paper contributes to the literature by clarifying the role performed by non-family managers during the formalization of management control in family firms. It also shows how the family values of professionalism, meritocracy and an emphasis on the business’s identity rather than family identity can influence the way control is exercised within family firms. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Qualitative Research in Accounting & Management Emerald Publishing

The institutionalization of management control systems in a family firm

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References (65)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1176-6093
DOI
10.1108/qram-12-2019-0128
Publisher site
See Article on Publisher Site

Abstract

This study aims to understand how family values, family managers and non-family managers influence the institutionalization of management control systems in family firms.Design/methodology/approachA case study was conducted in a family business group that underwent a process of adoption and transformation of its management control system.FindingsThe results indicate that several non-family managers, besides the controller, played crucial roles in harmonizing the logic of a generalized practice (quality control management) with the existing rationalities of the family firm. The authors also observed that the ISO 9001/quality control management logic together with the family values of professionalism, meritocracy and an emphasis on the business’s identity rather than the family identity have laid the groundwork for the formalization of the business group’s management controls.Practical implicationsThis study shows that quality control management is an accessible source of guidance for the formalization of managerial activities within an organization.Originality/valueThis paper contributes to the literature by clarifying the role performed by non-family managers during the formalization of management control in family firms. It also shows how the family values of professionalism, meritocracy and an emphasis on the business’s identity rather than family identity can influence the way control is exercised within family firms.

Journal

Qualitative Research in Accounting & ManagementEmerald Publishing

Published: Oct 15, 2020

Keywords: Management control systems; Case study; Family firms; Institutionalization

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