Effects of Organizational Process Change on Management Control Systems and Revelations of Managers' Private Knowledge
Casey M. Rowe
Purdue University - Krannert School of Management
Jacob G. Birnberg
University of Pittsburgh - Katz Graduate School of Business
Michael D. Shields
Michigan State University - Department of Accounting & Information Systems
November 1, 2005
AAA Management Accounting Section 2006 Meeting Paper
This paper presents theoretical analysis and longitudinal field-study evidence that the effect of responsibility-center performance measurement and management control system (MCS) boundaries on organizational performance depends on whether organizations have a strategy of continuous or discontinuous organizational process change. Using social psychology theory, we develop a model consisting of three expectations of how continuous or discontinuous organizational process change influences responsibility-center performance measurement and competitive or cooperative MCS boundaries. In turn, these measurements and MCS boundaries have a disordinal interactive effect on responsibility-center managers' revelations of their private knowledge that is needed to identify and extract organization-wide performance gains from the organizational process change. The evidence presented from the longitudinal field study provides support for the theoretical model.
Number of Pages in PDF File: 69
JEL Classification: M49
Date posted: August 3, 2005 ; Last revised: November 29, 2013
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