Globalization and localization of Management Control Systems

Thomas Toldbod, Poul Israelsen

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    Abstract

    Through an empirical case study this article examines the operation of multiple management control systems as a package in a Danish manufacturing company. The analysis focuses on four different management control systems; cybernetic controls, planning controls, reward controls, and administrative controls, through the theoretical lens of globalization, localization, and glocalization. The analysis documents that these different management control systems are affected differently by the processes of globalization and localization, whereby some are universal throughout the organization and others have more particular characteristics. Specifically, this study finds that cybernetic controls and administrative controls are designed as global management control systems. Planning controls are glocal systems and reward & compensation controls assume local characteristics. The finding leads to the conclusion that primary control systems are designed as global systems, which are universal throughout the company, whereas secondary systems are designed as local or glocal systems.
    Original languageEnglish
    Title of host publicationInternational Business Center Conference : "Finding Solutions to the New Challenges of Internationalization"
    EditorsOlav Juul Sorensen
    Number of pages20
    Publication date2014
    Publication statusPublished - 2014
    Event5th Aalborg Conference: Finding Solutions to the New Challenges of Internationalization - Rebild, Denmark
    Duration: 4 Jun 20146 Jun 2014
    Conference number: 5

    Conference

    Conference5th Aalborg Conference
    Number5
    Country/TerritoryDenmark
    CityRebild
    Period04/06/201406/06/2014

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