The study contributes to the management control system (MCS), environmental and behavioural reaction literature by examining the mediating role of employee environmental citizenship behaviour on the association between the interactive and diagnostic use of eco-control with eco-innovation. Based on an empirical analysis of 406 Australian organisations, the results indicate that employee environmental citizenship behaviour mediates the effect of both the interactive and diagnostic use of eco-control on eco-innovation (specifically, eco-product innovation). The findings highlight the importance of eco-controls and employee behaviour, specifically employee environmental citizenship behaviour, in influencing eco-innovation.
Purpose
This study aims to examine the role of organisational dynamic capabilities (strategic flexibility and employee empowerment) in mediating the relationship between management control systems (MCSs), in particular the interactive and diagnostic approaches to using controls, with organisational change and performance.
Design/methodology/approach
Data were collected based on a mail survey of public sector organisations in Australia and analysed using structural equation modelling (SEM).
Findings
The findings indicate that strategic flexibility and employee empowerment mediate the association between the interactive approach to MCSs with organisational performance, and strategic flexibility mediates the relationship between the interactive approach to MCSs with organisational change.
Practical implications
The study’s findings inform public sector practitioners as to how to enact change within and enhance the performance of public sector organisations. Specifically, managers are advised to focus on the use of interactive controls and the development of two dynamic organisational capabilities, strategic flexibility and employee empowerment.
Originality/value
The study provides an initial empirical insight into the relation between controls and dynamic capabilities and their role in enacting change and performance within the public sector. The findings suggest that the achievement of new public management ideals is reliant upon the organisational environment, with change and performance facilitated by the interactive use of controls and strategic flexibility and employee empowerment.
Purpose
The purpose of this paper is to examine the association between the interactive and diagnostic use of MCSs with the extent of adoption of contemporary management accounting practices, and the subsequent impact on the success of such practices in the public sector.
Design/methodology/approach
Data were collected through the distribution of a mail survey of 740 questionnaires to public sector organisations in Australia, and analysed using structural equation modelling.
Findings
The study found that both the interactive and diagnostic approaches to using MCSs exhibit a positive association with the adoption of contemporary management accounting practices, both as a package and individually. In addition, while the level of success of contemporary management accounting practices was moderate, it was found that the extent of adoption of the practices enhanced their success.
Practical implications
The findings suggest that by intensifying the use of MCSs in a more interactive and diagnostic manner, public sector organisations are more likely to adopt contemporary management to a greater extent, with the subsequent increase in the extent of adoption of such practices to exacerbate their success.
Originality/value
The study contributes to the MCS contingency-based research by highlighting the interrelationship between two aspects of MCSs, the use of controls and the adoption and success of management accounting practices.
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