Reflexes of Application of Funds on the Design and Use of the Management Control System

Viviane Theiss, Ilse Maria Beuren

Abstract


Objective: This study analyzes the reflexes of application of funds by funding providers on the use of the Management Control System (MCS) mediated by its design in startups.

Method: A survey was conducted on 387 startups listed in the Brazilian Startup Association, and the sample consists of 56 valid answers.

Originality/Relevance: The research shows that the application of funds by funding providers is directly related to all the design variables of the MCS and only to the boundary system regarding the use of the MCS. This denotes the relevance of analyzing the effects of application of funds on the design and use of the MCS in startups.

Results: The survey results show a direct effect on the relationship between application of funds by funding providers and the variables of the MCS design (planning, cybernetic, administrative and cultural controls). The direct effect on the relationship with the use of the MCS (diagnostic, interactive beliefs and boundary control systems) was found only for the boundary system. Mediation indicated stronger relationships between the use of the MCS and planning and cultural controls, while cybernetic and administrative controls did not mediate with all variables.

Theoretical/Methodological contributions: The study contributes to the literature on the design and use of the MCS, consonant with application of funds by funding providers, from a theoretical model.


Keywords


Application of funds; MCS Design; Use of MCS; Startups.

References


Bisbe, J., & Otley, D. (2004). The effects of the interactive use of management control systems on product innovation. Accounting, Organizations and Society, 29(8), 709-737. https://doi.org/10.1016/j.aos.2003.10.010

Chenhall, R.H. (2003). Management control systems design within its organizational context: findings from contingency-based research and directions for the future. Accounting, Organizations and Society, 28(2-3), 127-168. https://doi.org/10.1016/S0361-3682(01)00027-7

Cruz, A.P.C., Frezatti, F., & Bido, D.S. (2015). Estilo de liderança, controle gerencial e inovação: Papel das alavancas de controle. Revista de Administração Contemporânea, 19(6), 772-794. http://dx.doi.org/10.1590/1982-7849rac2015150099.

Davila, A., & Foster, G. (2005). Management accounting systems adoption decisions: Evidence and performance implications from early-stage/startup companies. The Accounting Review, 80(1), 1039-1068. https://doi.org/10.2308/accr.2005.80.4.1039

Davila, A., Foster, G., & Jia, N. (2015). The valuation of management control systems in start-up companies: International field-based evidence. European Accounting Review, 24(2), 207-239. https://doi.org/10.1080/09638180.2014.965720

Faul, F., Erdfelder, E., Buchner, A., & Lang, A.-G. (2009). Statistical power analyses using G*Power 3.1: Tests for correlation and regression analyses. Behavior Research Methods, 41(1), 1149-1160. doi:10.3758/BRM.41.4.1149

Gaski, J.F., & Nevin, J.R. (1985). The differential effects of exercised and unexercised power sources in a marketing channel. Journal of Marketing Research, 22(2), 130-142. https://doi.org/10.1177/002224378502200203

Hair Jr, J.F., Hult, G.T.M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM). USA: Sage Publications.

Jensen, M.C., & Meckling, W.H. (1976). Theory of the firm: managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X

Henri, J.F. (2006). Management control systems and strategy: A resource-based perspective. Accounting, Organizations and Society, 31(6), 529–558. https://doi.org/10.1016/j.aos.2005.07.001

Klem, L. (2006). Structural equation modeling. In: Grimm, L.G., & Yarnold, P.R. (Eds.). Reading and understanding more multivariate statistics (p. 227-260). Washington: American Psychological Association.

Malmi, T., & Brown, D.A. (2008). Management control systems as a package: Opportunities, challenges and research directions. Management Accounting Research, 19(4), 287-300. https://doi.org/10.1016/j.mar.2008.09.003

Ouchi, W. (1979). A conceptual framework for the design of organizational control mechanisms. Management Science, 25(9), 833-848. http://www.jstor.org/stable/2630236

Oyadomari, J.C.T., Cardoso, R.L., Silva, B.O.T., & Perez, G. (2010). Sistemas de controle gerencial: Estudo de caso comparativo em empresas inovadoras no Brasil. Revista Universo Contábil, 6(4), 21-34. http://dx.doi.org/10.4270/ruc.20106

Pasquali, L. (2003). Psicometria: Teoria dos testes na psicologia e na educação. Petrópolis: Vozes.

Sandino, T. (2007). Introducing the first management control systems: Evidence from the retail sector. The Accounting Review, 82(1), 265-293. 10.2308/accr.2007.82.1.265

Sá, M.G.C. (2017). O capital de risco aplicado em startups no Brasil: Uma reflexão sobre o ecosistema dos empreendimentos inovadores a partir da visão do investidor. Revista de Gestão, Finanças e Contabilidade, 7(1), 97-120. http://dx.doi.org/10.18028/rgfc.v7i1.3073

Simons, R. (1995a). Control in an age of empowerment. Harvard Business Review, 73(2), 8-88. 10.1016/0024-6301(95)91624-5

Simons, R. (1995b). Levers of control. Boston: Harvard Business School Publishing.

Widener, S.K. (2007). An empirical analysis of the levers of control framework. Accounting, Organizations and Society, 32(7-8), 757-788. https://doi.org/10.1016/j.aos.2007.01.001




DOI: http://dx.doi.org/10.21714/1984-3925_2020v23n2a5

Refbacks

  • There are currently no refbacks.


e-ISSN: 1984-3925

Licença Creative Commons
The JAMG adopts the Creative Commons license CC-BY-NC ND Creative Commons Attribution 4.0 

Indexing and Abstracting:

Logotipo SPELLLogotipo LATINDEX Logotipo OPENAIRE Logotipo DOAJLogotipo Cengage Logotipo EBSCOLogotipo REDIB Logotipo ESCI