Management Control Systems in the Era of Digital Transformation

Dear Colleagues,

This Special Issue explores the intertwined relationship between Management Control Systems (MCSs) and Digitalization.

On one hand, the impact of Digitalization on management accounting and control is now widely acknowledged by both academics and practitioners (Bhimani, 2020; Demartini & Taticchi, 2021; Fähndrich, 2023; van Slooten et al., 2024). The advancement of digital technologies not only makes MCSs able to better gather, analyze, and interpret business data to make improved decisions in real-time, but it also provides a framework for MCSs that is more adaptable and dynamic (MacLean & Titah, 2023).

At the same time, however, MCSs are crucial in ensuring the successful adoption of increasingly sophisticated IT tools. While the literature recognizes the influence of Digitalization on MCS tools, mechanisms, and processes, there is still a need to delve deeper into how the effectiveness of Digitalization initiatives hinges on the adoption of a proper implementation approach and on the presence of supportive MCSs (Attaran et al., 2019; Bozkus, 2024). For example, further research is needed to understand if and how much the deployment of a company-wide digital resilience is contingent upon the execution of a robust strategy and maintaining a related MCS across the organization.

A comprehensive understanding of the intricate relationship between MCSs and Digitalization is more crucial than ever to effectively harness the extraordinary opportunities and address the potential challenges that technological megatrends, such as artificial intelligence (AI) and big data, pose to the control function (Quattrone, 2016; Arnaboldi et al., 2017; Baker & Andrew, 2019; Sundström, 2024).

Furthermore, to fully grasp the mechanisms (both formal and informal) needed to manage the complex relationship between MCSs and Digitalization, and to maximize its benefits (both tangible and intangible) for the entire organization—particularly for less structured entities, such as SMEs, or those operating in more traditional sectors or less developed areas—it is essential to access a diverse range of in-depth analyses and longitudinal case studies both highlighting the impact of Digitalization on MCSs and vice versa and their management (Maraghini et al., 2022).

Building on these considerations, this Special Issue seeks original contributions that emphasize the intertwined relationship between MCSs and Digitalization, advancing our understanding of how to manage it in order to fully benefit from all the potential benefits related to it.

Various research approaches are welcomed, including theoretical frameworks, in-depth case studies, empirical research, and comparative studies. Topics of interest for publication include, but are not limited to, the following:

• The impact of Digitalization on MCSs, particularly in the context of today's technological megatrends, such as artificial intelligence (AI) and big data, with a focus on specific corporate entities, industries, or geographical areas;
• The influence of MCSs on the effectiveness of Digitalization initiatives (both tangible and intangible effects);
• The mechanisms (both formal and informal) needed to manage the complex relationship between MCSs and Digitalization;
• The changing role of management control and controllers in the era of digital transformation.

References:

Arnaboldi, M., Busco, C., Cuganesan, S. (2017). Accounting, accountability, social media and big data: Revolution or hype? Accounting, Auditing & Accountability Journal, 30(4), 762–776.

Attaran, M., Attaran, S., Kirkland, D. (2019). Technology and Organizational Change: Harnessing the Power of Digital Workplace. https://doi.org/10.4018/978-1-5225-8933-4.

Baker, M., Andrew, J. (2019). Big Data and accounting. Critical Perspectives on Accounting, 59, I–III.

Bhimani, A. (2020). Digital data and management accounting: Why we need to rethink research methods. Journal of Management Control, 31, 9–23. https://doi.org/10.1007/s00187-020-00295-z.

Bozkus, K. (2024). Organizational Culture Change and Technology: Navigating the Digital Transformation. IntechOpen. https://doi.org/10.5772/intechopen.112903.

Demartini, M., Taticchi, P. (2021). Performance measurement and management. A literature review focussed on the role played by management theories with a deep dive into the industry 4.0 environment. International Journal of Productivity and Performance Management, 71(4), 1008–1033.

Fähndrich, J. (2023). A literature review on the impact of digitalization on management control. Journal of Management Control, 34, 9–65. https://doi.org/10.1007/s00187-022-00349-4.

MacLean, D., Titah, R. (2023). Implementation and impacts of IT Service Management in the IT function. International Journal of Information Management, 70. https://doi.org/10.1016/j.ijinfomgt.2023.102628.

Maraghini, M.P., Becciu, A., Rossi, M., De Micco, P. (2022). Controllo e digitalizzazione nelle imprese culturali: il caso del teatro Regio di Parma. Controllo di gestione, 4, 53–64.

Quattrone P. (2016). Management accounting goes digital: Will the move make it wiser? Management Accounting Research, 31, 118–122.

Sundström, A. (2024). AI in management control: Emergent forms, practices, and infrastructures. Critical Perspectives on Accounting, 99, 102701. https://doi.org/10.1016/j.cpa.2023.102701.

van Slooten, A., Dirks, P., Firk, S. (2024). Digitalization and management accountants’ role conflict and ambiguity: A double-edged sword for the profession. The British Accounting Review. https://doi.org/10.1016/j.bar.2024.101460.

Prof. Dr. Maria Pia Maraghini
Prof. Dr. Angelo Riccaboni
Guest Editors

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• management control systems
• digitalization
• artificial intelligence (AI) and big data
• implementation approach
• mechanisms
• organizational change
• digital strategy and execution