Cascading Control Changes, Incoherence, and Dialogue: Insights from a Longitudinal Case Study

Thomas Toldbod, Berend van der Kolk

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Environmental shifts regularly urge organizations to adapt, which may entail management control (MC) changes. Changes to an MC element such as a performance measurement system, however, may in turn create incoherence with other, non-changed elements, generating a need for more changes, and thus trigger a cascade effect. To date, however, we know little about how this sequential process unfolds and what managers can do to deal with incoherence. This paper contributes by enhancing the understanding of sequential changes, drawing on the organizational ecology literature, and we empirically inform our research with a five-year longitudinal case study. Our data illustrates in detail how initial MC changes, intended to cope with an environmental shift, trigger a cascade effect. This sequential process results in an extensive change period, during which various incoherent MC elements coexist. Our study acknowledges that incoherence among MC elements can decrease control effectiveness by creating intra-organizational frictions, yet we highlight the role of managers in mitigating such negative effects. Specifically, we show how managers can alleviate the unfavorable effects of incoherence by changing their use of performance measures in order to better facilitate organizational dialogue, learning and problem solving.

Original languageEnglish
JournalEuropean Accounting Review
Number of pages45
ISSN0963-8180
DOIs
Publication statusAccepted/In press - 2020

Keywords

  • Change
  • Management Control
  • Organizational Ecology
  • Performance Measurement

Fingerprint Dive into the research topics of 'Cascading Control Changes, Incoherence, and Dialogue: Insights from a Longitudinal Case Study'. Together they form a unique fingerprint.

Cite this