System of Management Control and Organizational Performance: an Analysis of the Largest Companies of Espírito Santo Under the Optics of Contingency Theory
Name: EDUARDO VIEIRA DUTRA
Publication date: 29/08/2014
Advisor:
Name |
Role |
|---|---|
| EMANUEL RODRIGUES JUNQUEIRA DE MATOS | Advisor * |
| HÉLIO ZANQUETTO FILHO | Co-advisor * |
Examining board:
| Name |
Role |
|---|---|
| EMANUEL RODRIGUES JUNQUEIRA DE MATOS | Advisor * |
| HÉLIO ZANQUETTO FILHO | Co advisor * |
| MARCOS PAULO VALADARES DE OLIVEIRA | Internal Examiner * |
Summary: The Contingency Theory argues that the organization must adapt its structure to the characteristics of the environment in which it operates, in seeking to ensure their survival and growth. It is considered contingent factors that have varying levels of influence over the organization, internally or externally, as the various aspects of the external environment, organizational structure and strategy, among others. Among the various aspects of the organizational structure that can be influenced by the environmental factors, there is the Management Control System (MCS), which should produce information that can guide and support the decisions of managers. The control function is one of the main tasks of administration, especially for the monitoring of organizational strategy. This study investigates the influence of (i) Competitive Forces proposed by Porter (1991), representing some aspects of the external environment, and (ii) the Strategic Priority of the organization on the configuration of the organizational structure and the MCS (design and use), and (iii) the link of these two latter with organizational performance. For this, its used a survey, carried out by applying a questionnaire to responsible for controllership sector, or related area, of the listed companies in the permanent database yearbook of IEL-ES (Institute Euvaldo Lodi), that since 15 years ago publishes a list of the largest companies in the state of Espírito Santo. The data are processed through a multivariate analysis of data, the Structural Equation Modeling, with the use of the partial least squares (PLS-SEM) algorithm. It was concluded, among other things, that: (a) there is an association between high levels of competition and: 1) adoption of strategies of cost, and, more broadly, between the external environment and organizational strategy; and 2) adoption of centralized organizational structures; (b) there is an association between the adoption of strategies of differentiation and: 1) the use of decentralized organizational structures; and 2) the use of modern techniques of management control; (c) there is an association between the joint use of decentralized structures and modern techniques of management control and better organizational performance.
