Social Capital and Management Control Systems: A Study of a Non-Government Organization

Posted: 15 Jul 2008 Last revised: 27 Oct 2010

See all articles by Robert H. Chenhall

Robert H. Chenhall

Monash University - Department of Accounting

Matthew Hall

Monash University - Department of Accounting

David Smith

Monash Uniiversity

Date Written: October 13, 2010

Abstract

In this paper we use the concept of social capital to outline a distinctive approach to understanding the interplay between management control systems and the development of social connections in and between organisations. Social capital provides a comprehensive framework for examining the nature of social connections through its focus on both structural networks (bridging) and interpersonal relationships that predispose individuals towards mutually beneficial collective action (bonding). In doing so, social capital provides a means of considering how individuals react to management control systems in terms of the social ties that exist both within the organization and external to the organization. Using a case study of a non-government organization, we show how social capital is implicated in efforts to attract economic capital and cultural capital. We demonstrate how elements of a management control system can either enhance or inhibit the bonding and bridging dimensions of social capital with potential consequences on both economic and cultural capital. We highlight the mixed and sometimes contradictory effects of management control systems on social capital, and provide a powerful illustration of the role of management control systems in brokering alliances and bridging structural holes.

JEL Classification: M40, M46, M47

Suggested Citation

Chenhall, Robert H. and Hall, Matthew and Smith, David Alan, Social Capital and Management Control Systems: A Study of a Non-Government Organization (October 13, 2010). Accounting, Organizations and Society, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1160189

Robert H. Chenhall

Monash University - Department of Accounting ( email )

Building 11E
Clayton, Victoria 3800
Australia
+61 3 9905-2355 (Phone)
+61 3 9905-5475 (Fax)

Matthew Hall (Contact Author)

Monash University - Department of Accounting ( email )

H3.43, Building H, Level 3
Monash University Caulfiled
Melbourne, VIC 3145
Australia

David Alan Smith

Monash Uniiversity ( email )

900 Dandenong Rd
Caulfield East, Victoria 3145
Australia
+61 3 990 34592 (Phone)

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