Adapting Management Control Systems to Organizational Contingency Factors: A Study of Moroccan Industrial Companies
Abstract
:1. Introduction
2. Theoretical Background: Management Control Systems—Contingency Factors
2.1. Management Control Concepts
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- Forecasting means quantifying the objectives, resources and action plans, and translating them into financial terms.
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- Measuring means ensuring that operations are carried out.
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- Taking action means identifying, understanding, and analyzing any discrepancies between the targets and forecasts, which may indicate malfunctions. It means anticipating the company’s future in order to take corrective action.
2.1.1. The Dashboard
2.1.2. Reporting
2.1.3. Budgetary Control
2.2. Contingency Theory in Management Control
2.3. Variables of Organizational Contingency Theory
2.3.1. Size
2.3.2. The Environment
2.3.3. Technology
2.3.4. Organizational Structure
3. Methodological Approach to Research
3.1. Finalization of Theoretical Model and Operationalization of Variables
- ➢
- Operationalization of the variables
- ➢
- Operationalization of the “Environment” construct
- Operationalization of the “Technology“ construct
- Operationalization of the “Organizational structure” construct
3.2. Sample and Data Collection
4. Presentation and Discussion of Results
4.1. Exploratory Factor Analysis (EFA)
4.1.1. Results of the Validation Tests of the “Environment“ Measurement Scales
4.1.2. Results of the Validation Tests of the “Technology” Measurement Scales
4.1.3. Results of the Validation Tests of the “Organizational Structure” Measurement Scales
4.2. Correlation and Regression Analysis
4.2.1. Correlation Analysis
4.2.2. Regression Analysis
4.3. Discussion of Results
4.3.1. Size
4.3.2. Environment
4.3.3. Technology
4.3.4. Organizational Structure
5. Conclusions
5.1. Theoretical Implications
5.2. Practical Implications
5.3. Research Limitations
5.4. Research Prospects
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Variable | Items |
---|---|
Environment | The dynamism of the external environment is very stable (slow evolution). |
The dynamism of the external environment is average (average trends). | |
The external environment is very dynamic (rapid change). |
Variable | Items |
---|---|
Technology | The existence of an information system. |
The degree of technology within a company. |
Variable | Items |
---|---|
Organizational structure | Advising managers (management, operations, etc.). |
Forecasting (budget, operational and strategic plans, etc.). | |
Taking action (implementing and monitoring action plans, budgetary control). | |
Closing and reporting (reporting, dashboard, etc.). | |
Analyze costs (cost accounting). | |
Develop tools (information systems, procedures, processes, etc.). | |
Advising managers (management, operations, etc.). |
Target | Surveys Distributed | Surveys Retrieved | Surveys Unretrieved | ||
---|---|---|---|---|---|
Number of Surveys Distributed | Number of Surveys Retrieved | Percentage % | Number of Unrecoverable Surveys | Percentage % | |
Moroccan industrial companies | 250 | 190 | 76% | 60 | 24% |
Sample Characteristics | Workforce | Percentage | Percentage Cumulative |
---|---|---|---|
Firm legal status SA SARL Total | 25 165 190 | 13.2 86.8 100 | 13.2 100 |
Employees Between 10 and 99 employees Between 100 and 200 employees Over 200 Total | 15 115 60 190 | 7.9 60.5 31.6 100 | 7.9 68.4 100 |
Years of existence Less than 5 years Between 5 and 10 years Between 10 and 25 years Over 25 years Total | 15 50 109 16 190 | 7.9 26.3 57.4 8.4 100 | 7.9 34.2 91.6 100 |
Precision measurement of Kaiser–Meyer–Olkin sampling. | 0.753 | |
Bartlett’s sphericity test | Approximate chi-square | 625,430 |
ddl | 1 | |
Meaning of Bartlett | 0.000 |
Component Matrix | Representation Quality | ||
---|---|---|---|
Axis1 component | Initial | Extraction | |
ENV1 | 0.981 | 1 | 0.961 |
ENV2 | 0.993 | 1 | 0.984 |
ENV3 | 0.994 | 1 | 0.987 |
Eigenvalues | 2.933 | ||
Total variance explained | 97.77 | ||
Cronbach’s Alpha | 98.9 |
Precision measurement of Kaiser–Meyer–Olkin sampling. | 0.560 | |
Bartlett’s sphericity test | Approximate chi-square | 629,500 |
ddl | 1 | |
Meaning of Bartlett | 0.000 |
Component Matrix | Representation Quality | ||
---|---|---|---|
Component Axis 1 | Initial | Extraction | |
TECH | 0.975 | 1 | 0.590 |
DEG.TECH | 0.975 | 1 | 0.590 |
Eigenvalues | 1.90 | ||
Total variance explained | 94.98 | ||
Cronbach’s Alpha | 58.5 |
Precision measurement of Kaiser–Meyer–Olkin sampling. | 0.746 | |
Bartlett’s sphericity test | Approximate chi-square | 629,500 |
ddl | 1 | |
Meaning of Bartlett | 0.000 |
Component Matrix | Representation Quality | ||
---|---|---|---|
Component Axis 1 | Initial | Extraction | |
CG.OBJ1 | 0.990 | 1 | 0.980 |
CG.OBJ2 | 0.964 | 1 | 0.929 |
CG.OBJ3 | 0.979 | 1 | 0.958 |
CG.OBJ4 | 0.979 | 1 | 0.958 |
CG.OBJ5 | 0.974 | 1 | 0.948 |
CG.OBJ6 | 0.990 | 1 | 0.980 |
Eigenvalues | 11.826 | ||
Total variance explained | 84.473 | ||
Cronbach’s Alpha | 97.4 |
Variable | Number of Items | Variance Recovered Following Factorization | Cronbach’s Alpha |
---|---|---|---|
Environment | 3 | 97.77 | 98.9 |
Technology | 2 | 94.98 | 58.5 |
Organizational structure | 6 | 84.473 | 98.4 |
Variables | SIZE | ENV | TECH | STR | SCM |
---|---|---|---|---|---|
SIZE | 1 | ||||
ENV | −0.004 | 1 | |||
TECH | 0.009 | 0.040 | 1 | ||
STR | −0.085 | −0.009 | 0.041 | 1 | |
SCM | 0.090 | 0.223 | 0.158 | −0.012 | 1 |
Model | R | R Square | Adjusted R Square | Std. Error of the Estimate | Durbin–Watson |
---|---|---|---|---|---|
1 | 0.744 | 0.554 | 0.547 | 0.39275 | 1.746 |
Model | Sum of Squares | df | Mean Square | F | Sig. | |
---|---|---|---|---|---|---|
1 | Regression | 67.986 | 5 | 12.400 | 80.386 | 0.000 |
Residual | 54.123 | 185 | 0.154 | |||
Total | 122.109 | 190 |
Model | Unstandardized Coefficients | Standardized Coefficients | t | Sig. | Collinearity Statistics | |||
---|---|---|---|---|---|---|---|---|
B | Std. Error | Beta | Tolerance | VIF | ||||
1 | (Constant) | −1.680 | 0.315 | −6.553 | 0.000 | |||
SIZE | 0.335 | 0.048 | 0.338 | 6.962 | 0.000 | 0.980 | 1.014 | |
ENV | 0.423 | 0.045 | 0.468 | 8.320 | 0.000 | 0.975 | 1.022 | |
TECH | 0.418 | 0.046 | 0.464 | 9.120 | 0.000 | 0.968 | 1.019 | |
STR | 0.202 | 0.035 | 0.237 | 4.213 | 0.000 | 0.900 | 1.020 |
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Hammouch, H.; Manta, O.; Palazzo, M. Adapting Management Control Systems to Organizational Contingency Factors: A Study of Moroccan Industrial Companies. Businesses 2024, 4, 883-898. https://doi.org/10.3390/businesses4040048
Hammouch H, Manta O, Palazzo M. Adapting Management Control Systems to Organizational Contingency Factors: A Study of Moroccan Industrial Companies. Businesses. 2024; 4(4):883-898. https://doi.org/10.3390/businesses4040048
Chicago/Turabian StyleHammouch, Hind, Otilia Manta, and Maria Palazzo. 2024. "Adapting Management Control Systems to Organizational Contingency Factors: A Study of Moroccan Industrial Companies" Businesses 4, no. 4: 883-898. https://doi.org/10.3390/businesses4040048
APA StyleHammouch, H., Manta, O., & Palazzo, M. (2024). Adapting Management Control Systems to Organizational Contingency Factors: A Study of Moroccan Industrial Companies. Businesses, 4(4), 883-898. https://doi.org/10.3390/businesses4040048