Control System, Strategy and Learning
2015; Allied Academies; Volume: 14; Issue: 1 Linguagem: Inglês
ISSN
1939-6104
Autores Tópico(s)ERP Systems Implementation and Impact
ResumoABSTRACTUp to now, there have been many literatures which explore the impact of management control system (MCS) on strategy. Unfortunately, there are still few studies which highlight the impact of MCS on strategy based on interactive approach and process approach (Henri, 2006; Kober et al, 2007). Kober et al. (2007) found that MCS will shape company's strategy. Roberts (1990) also said that the use of interactive MCS (interactive control system) will facilitate the strategy formation process.Kober et al. (2007) and Roberts (1990) used case study qualitative method. Case study enables more detailed analyses of strategy formation process, in addition many authors encourage the use of case study (Dent, 1990). Generalization of this qualitative result, however, is still limited because of many specific organizational characteristic. Interactive control system and strategy will influence internal and external learning process. This study shows that control system not only help strategy formation but also improve the learning process in an organization, yet the knowledge of how strategy influence learning process is still limited (Mulcaster, 2009).This study aims to investigate the relationship between the use of MCS and strategy formation process which results in intended and emergent strategy. These two strategies are useful to improve learning. This study uses structural equation modeling as multivariate analysis. Samples used in this study are the upper and middle manager in manufacturing industries in Indonesia. The author uses AMOS 16 as the aid tool to overcome structural equation modelling (SEM) problem. The findings for this study are: interactive control system positively affects the intended and emergent strategy, interactive control system positively affects the internal and external learning; intended strategy and emergent strategy formed by interactive control system will positively affect internal and external learning. The results of this study can be generalized rather than those of previous studies.Keywords: interactive, formation strategy, learningINTRODUCTIONWhen a strategy is implemented, it sometimes needs an alteration to adjust with the change in surrounding environment of a firm. Therefore, a formed strategy may be accomplished as it has already planned before. The formed strategy can also be realized in modified shape, or even completely different strategy. Strategy formation process also demands manager to learn more rapidly (Elcock, 1996). As a result, it needs a control system which can not only help strategy formation process but also improve the learning process in an organization (Kober et ah, 2007; Simon, 2000). Learning process to reach sustainable competitive advantage derives from internal and external learning (Schroeder et al., 2002). Management control system (MCS) provides valuable information in decision making, planning and evaluation process (Anthony & Govindarajan, 2004; Davila, 2005; Merchant & Otley, 2006). MCS attains the collective and individual cooperation in organizational unit and becomes the channel to every employee's effort in accomplishing company's specific aim (Anthony & Govindarajan, 2004; Ouchi, 1979; Flamholtz, 1983).There has been a significant development of researches which explore the relationship between MCS and strategy (Langfield-Smith, 2007). MCS is the only managerial instrument used to implement a desired strategy (Anthony & Govindrajan, 2004). Therefore, every company must have orientation and business strategy reflected in MCS (Langfield-Smith, 1997).Up to now, there have been many literatures which explore the impact of management control system (MCS) on strategy. Unfortunately, there are still few studies which highlight the impact of MCS on strategy based on interactive approach and process approach (Henri, 2006; Kober et al., 2007). Kober et al. (2007) found that MCS will shape company's strategy. …
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