The influence of formal and informal control on market and financial results

Abstract

Purpose This paper aims to examine the relationship between control mechanisms and marketing performance based on a sample of marketing managers. To that end, this paper focuses on the relationship between the types of controls used in marketing and the market and business results. Methodology This study collected the data through a survey among marketing professionals with experience and decision-making capacity involving marketing budgets and plans, in practical terms a sample of 97 marketing managers and analyzed the data via a structural equation model using Smart PLS 3. Findings The findings confirm that marketing control mechanisms have a significant impact on business results, demonstrating the relationship of formal controls with market results and the relationship between informal controls with financial results. Likewise, the authors were able to prove that there is a relationship between formal and informal control. Practical implications The implementation of the control mechanisms should be based on the development of a detailed evaluation system of the activities carried out by the marketing employees and an analysis of their capabilities and abilities. In addition, managers should integrate formal control decisions into their marketing strategy to improve organizational results. Originality The results of this study help explain the relationship between marketing control mechanisms and organizational results and allow to understand what the level of influence is that marketing control mechanisms have on market and financial results.

Relação entre Sistema de Controle Gerencial e Desempenho: Um Estudo Meta-Análitico de Trabalhos Nacionais

“…Como apontado por Cardinal et al (2017) e também nos estudos brasileiros analisados neste trabalho, nota-se que as pesquisas que buscaram avaliar os efeitos do controle gerencial no desempenho focam majoritariamente no papel dos controles formais, negligenciado os efeitos dos controles informais. É natural que a investigação dos controles formais seja mais evidente, uma vez que eles são mais visíveis no ambiente organizacional, viáveis de serem mensurados e derivam de decisões tomadas pela gestão (Sáez, Ortiz-Rendón & Alemán, 2022). No entanto, controles formais e informais coexistem e de forma conjunta podem influenciar o desempenho de diferentes formas (Sáez et al, 2022;Liang & Frösén, 2020).…”

“…É natural que a investigação dos controles formais seja mais evidente, uma vez que eles são mais visíveis no ambiente organizacional, viáveis de serem mensurados e derivam de decisões tomadas pela gestão (Sáez, Ortiz-Rendón & Alemán, 2022). No entanto, controles formais e informais coexistem e de forma conjunta podem influenciar o desempenho de diferentes formas (Sáez et al, 2022;Liang & Frösén, 2020). Por exemplo, os controles formais e informais podem atuar de forma complementar promovendo o diálogo e a cooperação entre os indivíduos e mitigando as limitações e deficiências de cada tipo de controle (Kreutzer, Cardinal, Walter & Lechner, 2016).…”

Influence of informal controls on organizational commitment and performance in accounting firms

“…These controls influence the internal environment of the entity and the mindset of individuals (Goebel & Weißenberger, 2017). Thus, informal controls are associated with intrinsic rewards, such as opportunities for personal growth and autonomy, and achieving goals and improving organizational performance is expected (Espinosa Sáez et al, 2022).…”

Influência dos controles informais no comprometimento organizacional e desempenho em escritórios de contabilidade

“…Esses controles exercem influência sobre o ambiente interno da entidade e a mentalidade dos indivíduos (Goebel & Weißenberger, 2017). Desse modo, os controles informais estão associados a recompensas intrínsecas, tais como oportunidades de crescimento pessoal e autonomia, sendo esperado o alcance de metas e melhoria do desempenho organizacional (Espinosa Sáez et al, 2022).…”