Effects of Organizational Process Change on Management Control Systems and Revelations of Managers' Private Knowledge

69 Pages Posted: 3 Aug 2005 Last revised: 29 Nov 2013

See all articles by Casey M. Rowe

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

Date Written: November 1, 2005

Abstract

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.

JEL Classification: M49

Suggested Citation

Rowe, Casey M. and Birnberg, Jacob G. and Shields, Michael D., Effects of Organizational Process Change on Management Control Systems and Revelations of Managers' Private Knowledge (November 1, 2005). AAA Management Accounting Section 2006 Meeting Paper. Available at SSRN: https://ssrn.com/abstract=774005 or http://dx.doi.org/10.2139/ssrn.774005

Casey M. Rowe (Contact Author)

Purdue University - Krannert School of Management ( email )

West Lafayette, IN 47907
United States
765-496-1250 (Phone)

Jacob G. Birnberg

University of Pittsburgh - Katz Graduate School of Business ( email )

Pittsburgh, PA 15260
United States
412-648-1719 (Phone)
412-648-1693 (Fax)

Michael D. Shields

Michigan State University - Department of Accounting & Information Systems ( email )

270 North Business Complex
East Lansing, MI 48824-1034
United States

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