Management Control System in Multinational Environment: A Critical Review

Authors

  • Richard Akinola University of Lagos
  • Henry Okundalaiye University of Lagos

DOI:

https://doi.org/10.14276/2285-0430.3434

Keywords:

Management control system, Belief control, Boundary control, Diagnostic control and interactive control systems, Organizational performance

Abstract

Organisations are now aimed at achieving fast growth, continuous development, increased performance, profitability and being at the top of the global business spectrum. This necessitates the need for Management Control System (MCS) within firms which will improve firms’ competitiveness and performance. This study examines the impact of management control systems on organisational performance using belief control, boundary control, diagnostic control and interactive control systems as a proxy in the relationship between MCS and organisational performance. The study was anchored on Resource Based View (RBV) Theory and Contingency Theory. The study employed survey design which is a type of descriptive research design. Simple Random sampling technique was employed and relevant data were gathered through the use of structured questionnaire. The sample population consisted of three hundred and fifty-eight (358) employees of Globacom Limited, Lagos State. The findings revealed that all the management control system (belief, boundary, diagnostic, and interactive control systems) are directly related to organizational performance. The study recommends that managers should prioritize where to spend their time and resources when using management control systems.

Keywords: Management control system; Belief control; Boundary control; Diagnostic control and interactive control systems; Organizational performance

Author Biographies

Richard Akinola, University of Lagos

Richard Akinola holds a Master in Business Administration (MBA) from Ahmadu Bello University, Zaria and a Master of Science degree in Management from the University of Lagos all in Nigeria. He is an associate member of both the Institute of Chartered Accountants of Nigeria (ICAN) and the Chartered Institute of Taxation of Nigeria (CITN). He completed his training with HLB Z.O Ososanya &Co. (Chartered Accountant), where he gained real-world experience in accounting, taxation, and audit. He currently works for Tropical General Investment (TGI) Group as an Assistant Finance Manager. He is a researcher whose areas of interest include all contemporary management concerns.

Henry Okundalaiye, University of Lagos

Henry Okundalaiye holds two masters degrees in business administration (MBA) and organizational behaviour (MSc) from the University of Lagos, Nigeria. He got the award for best graduate in MBA (management specialization) and finished with a distinction in his MSc degree. He has collaborated with a few scholars on concepts like workplace diversity and quality of working life. He has served in various managerial and leadership capacities where he honed his skills and knowledge in transformational leadership, change management, restructuring, organizational development, and quantitative research towards organizational effectiveness. He is passionate about Sustainable Development Goals (SDGs), especially SDG 9 and SDG 13.

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Published

29.10.2022

Issue

Vol. 12 No. 1 (2022): International Journal of Economic Behavior

Section

Articles

License

Copyright (c) 2022 Richard Akinola, Henry Okundalaiye

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

L'opera è pubblicata sotto Licenza Creative Commons -CC Attribution-ShareAlike 4.0