Management Control Systems and Strategy Change in Buyouts

37 Pages Posted: 18 Jan 2003

See all articles by Hans Bruining

Hans Bruining

Erasmus University Rotterdam (EUR) - Department of Strategic Management and Entrepreneurship; Erasmus Research Institute of Management (ERIM)

Mike Wright

Nottingham University Business School

Marcel Bonnet

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Date Written: October 2002 1,

Abstract

The impact of management buy-outs (MBO) on strategy and managementcontrol systems (MCS) is little understood. Previous research by Jones(1992) focused on efficiency-enhancing buy-outs that were a feature ofthe early development of the market. However, MBOs are heterogeneousand more recent developments have involved ownership changes thatstimulate entrepreneurial practices. The novel contribution of thispaper is to use Simons' (1995) classification of beliefs systems,boundary systems, diagnostic and interactive control systems to extendJones' study to these newer forms of MBO. Within-case analysis andcross-case comparisons from four buyout firms are used to capture theinteraction between management control systems and competitivestrategy formulation, implementation and modification. This evidencesupports arguments that buy-out managers undertake efforts inbalancing the traditional feedback systems with the newer systems thatstimulate opportunity seeking and learning.

Keywords: management control systems, strategy change, management buyouts

JEL Classification: M, M10, L2

Suggested Citation

Bruining, Hans and Wright, Mike and Bonnet, Marcel, Management Control Systems and Strategy Change in Buyouts (October 2002 1,). Available at SSRN: https://ssrn.com/abstract=371060

Hans Bruining (Contact Author)

Erasmus University Rotterdam (EUR) - Department of Strategic Management and Entrepreneurship ( email )

RSM Erasmus University
Rotterdam, 3000 DR
Netherlands

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Mike Wright

Nottingham University Business School ( email )

Jubilee Campus
Wollaton Road
Nottingham, NG8 1BB
United Kingdom
+44 115 951 5257 (Phone)
+44 115 951 5204 (Fax)

Marcel Bonnet

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
1,203
Abstract Views
4,918
rank
18,947
PlumX Metrics