Does the Involvement of Management Accountants in Strategic Management Processes Enhance Organisations’ Strategic Effectiveness? An Empirical Analysis

Ferreira, Aldónio; Moulang, Carly

doi:10.2139/ssrn.1515670

Cited by 1 publication

(9 citation statements)

References 41 publications

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“…This argumentation is in line with the resource-based view, as capable controllers (i.e. business partners) are a source of competitive advantages and able to add value to the firm because they are important providers of relevant information required by general managers (Ferreira and Moulang, 2009). Thus, if the head controller participates in decision-making and behaves as business partner, this should influence the contribution of the whole controllers' department perceived by general managers because the whole controllers' department will inevitably be involved in the process of strategic planning and preparation of relevant financial information.…”

Section: Controllers As Business Partnerssupporting

confidence: 54%

“…Previous research shows that business-oriented controllers' activities are positively related to decision-making processes, strategic effectiveness and profit margin growth (e.g. Ferreira and Moulang, 2009;Zoni and Merchant, 2007). Additionally, Roozen and Steens (2006) propose in their theoretical framework that controllers' involvement is positively related to the degree of controllers' effectiveness.…”

Section: Controllers As Business Partnersmentioning

confidence: 99%

“…should add value to the management, Järvenpää, 2007) because research claims a need for examining the change of controllers' profession and the pursuit of regaining relevance within organizations (e.g. Ferreira and Moulang, 2009;Kaplan, 1995). To account for controllers' outcomes, we assess whether the contribution of the controllers' department is positively associated with internal efficiency and process improvements within an organization (Roozen and Steens, 2006;Rouwelaar, 2007).…”

Section: Theory and Hypothesesmentioning

confidence: 99%

“…On the other hand, if controllers participate in managerial decision-making, they will get more responsibility, have the chance to contribute to strategic planning and enhance the image of the finance function within the organization. Moreover, involvement into managerial decision-making adds value to the organization due to enhanced strategic effectiveness (Ferreira and Moulang, 2009) and organizational performance in terms of profit margin growth over prior five years (Zoni and Merchant, 2007). Thus, controllers JAOC 11,1 who believe that acting as business partner should lead to positive effects (e.g.…”

Section: Theory and Hypothesesmentioning

confidence: 99%

“…This definition points at the importance of personal desire and required skills for becoming a business partner, stressing the importance of controllers' involvement in decision-making (e.g. Ferreira and Moulang, 2009;Ma and Tayles, 2009;Zoni and Merchant, 2007). The underlying reasoning suggests that if controllers become business partners, they are better able to provide enhanced services to general managers and contribute to the achievement of organizational goals (Burns and Baldvinsdottir, 2005).…”

Section: Introductionmentioning

confidence: 99%

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Controllers as business partners in managerial decision-making

Wolf

Weißenberger

Wehner

et al. 2015

JAOC

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Purpose The purpose of this study is to examine whether controllers are willing to and/or general managers are expecting them to act as business partners and, hence, to analyze the related consequences from a manager’s point of view. Design/methodology/approach This study is based on a dyadic data set gathered from 112 German head controllers and corresponding general managers in the period of March to May 2009. Drawing on the theory of reasoned action (Fishbein and Ajzen, 1975), the authors examine controllers’ attitude, subjective norm and behavior regarding their participation in managerial decision-making. Further, the authors analyze general managers’ assessment of related outcomes, such as internal efficiency and process improvements and use covariance-based structural equation modeling to test for the theoretical relationships. Findings Results show that controllers’ behavior is strongly influenced by management’s expectations. Moreover, the results support the notion that business partnering is associated with organizational improvements regarding internal processes, decisions and efficiency, thereby increasing the contribution of the controllers’ department to the competiveness of an organization. Research limitations/implications Our study focuses on a limited set of variables and does not incorporate different hierarchy levels, which could be avenues for further research. Still, our findings highlight the importance of management’s expectations as triggers for business-oriented behavior of controllers. Originality/value Theory and empirical evidence in the research area of controllers’ business orientation are still underdeveloped and, therefore, knowledge about the micro-processes and determinants on an individual level for becoming a business partner, as well as on the related outcomes of such a behavior is still limited. The results contribute to literature by highlighting the importance of general managers’ expectations as triggers for business orientation of controllers and its related benefits for the organization.

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Section: Controllers As Business Partnerssupporting

confidence: 54%

Section: Controllers As Business Partnersmentioning

confidence: 99%