Original scientific paper

Formalization of management control systems: a study of companies in Croatia

Ivana Dropulić orcid.org/0000-0003-3128-706X ; University of Split, Split, Croatia
Andrijana Rogošić orcid.org/0000-0003-0532-527X ; University of Split, Split, Croatia

Abstract

This study seeks to explain management control systems (MCS) design as a package of controls within a Croatian context. MCS was conceptualized in terms of four dimensions: cybernetic, reward and compensation, administrative and cultural controls to form a composite measure of MCS. The strength of the typology lies in the broad scope of the controls in MCS as a package rather than the depth of its discussion of individual systems. This is one of few research studies conducted in the field of MCS in Croatia. Empirical research is based on the data collected from 124 companies in Croatia using a post questionnaire. The final results indicate that companies in Croatia most frequently use more formalized MCS tested using confirmatory factor analysis. This research confirms the multidimensional nature of MCS.

Keywords

management control systems; strategic management accounting; formalization; confirmatory factor analysis

Hrčak ID:

120195

URI

https://hrcak.srce.hr/120195

Publication date:

31.3.2014.

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