Abstract Purpose – This study investigates the association between family firm status and the maturity level of management control systems (MCSs) by considering the moderating effect of process digitalization. Design/methodology/approach – The authors conducted an empirical analysis on a sample of 106 Italian firms, utilizing both ordinary least squares and ordered logistic regression in this study. Findings – By resorting to the MCS maturity model proposed by Marx et al. (2012), the empirical findings reveal that family firms do not differ from their nonfamily counterparts regarding MCS maturity. Furthermore, the degree of process digitalization is positively associated with the probability of adopting IT-related technologies in MCSs. Digitalization negatively moderates the relationship between family firm status and MCS maturity, resulting in family firms exhibiting a lower MCS maturity level than their nonfamily counterparts. Research limitations/implications – Despite similar efforts in the digitalization process, family firms lag behind in the adoption of IT-enabled MCSs, which suggests that reduced agency issues in family firms constrain the MCS maturity level. Practical implications – This study can assist practitioners in implementing a more mature MCS by considering the interplay between internal digitalization processes and family status of the firm, thereby enhancing the decision-making process. Originality/value – This study adds novelty to an underexplored area at the intersection of MCSs, family firms and digitalization. Keywords Management control systems, MSC maturity, Family firms, Digitalization, Italy Paper type Original article

Family firms, management control and digitalization effect

Laura Broccardo;
2024-01-01

Abstract

Abstract Purpose – This study investigates the association between family firm status and the maturity level of management control systems (MCSs) by considering the moderating effect of process digitalization. Design/methodology/approach – The authors conducted an empirical analysis on a sample of 106 Italian firms, utilizing both ordinary least squares and ordered logistic regression in this study. Findings – By resorting to the MCS maturity model proposed by Marx et al. (2012), the empirical findings reveal that family firms do not differ from their nonfamily counterparts regarding MCS maturity. Furthermore, the degree of process digitalization is positively associated with the probability of adopting IT-related technologies in MCSs. Digitalization negatively moderates the relationship between family firm status and MCS maturity, resulting in family firms exhibiting a lower MCS maturity level than their nonfamily counterparts. Research limitations/implications – Despite similar efforts in the digitalization process, family firms lag behind in the adoption of IT-enabled MCSs, which suggests that reduced agency issues in family firms constrain the MCS maturity level. Practical implications – This study can assist practitioners in implementing a more mature MCS by considering the interplay between internal digitalization processes and family status of the firm, thereby enhancing the decision-making process. Originality/value – This study adds novelty to an underexplored area at the intersection of MCSs, family firms and digitalization. Keywords Management control systems, MSC maturity, Family firms, Digitalization, Italy Paper type Original article
2024
1
23
Management control systems, MSC maturity, Family firms, Digitalization, Italy
Stefano Amato, Laura Broccardo, Andrea Tenucci
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2318/1952213
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