The Effects of Management Control Systems on Strategy Formation: An Exploratory Study of Size as a Factor.

• Main Authors: Cheng-yang Chiu, 邱正洋
• Other Authors: Pei-how Huang
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/82jzbp

碩士 === 國立中山大學 === 企業管理學系研究所 === 95 === In this study an effort is made to bring more clear insights into the effect of management control systems on strategy formation. The content of management control systems does not have a final conclusion. Primary components of management control systems include managerial accounting and other controls. In the other hand, the process of strategy formulation mainly divided into two ways which are deliberate strategy and emergent strategy. The deliberate strategy is more applied to stable and predictable conditions while emergent strategy is a prompt response of enterprise to strategic uncertainties. Different perspectives of management control systems will separately help for two kinds of strategy formulation. This is an exploratory study which is contingent on size of organizations. Choosing steel industry as interviewers, the study divided them into two groups that are three large companies and three middle & small companies and proceeded elite interview separately. The conclusions are as follows: 1. High formalization of management control systems help for the need of information of deliberate strategy formulation. 2. The degree of participation and communication of interactive control systems in large companies are higher, while those of interactive control systems in small companies are lower. 3. No matter what the size of an organization is, the initial stages of strategic activities are shaped by management control systems. 4. No matter what the size of an organization is, boundary systems do not serve as a strategy filter. 5. The top management of interviewer companies tends to not realize that employees may make up the key performance indicator (KPI) due to the changes in the priority of KPI for responding to strategic uncertainties. 6. No matter what the size of an organization is, complete management control systems will help for higher performance in organization.