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Presentation
The Role of Organizational Learning in Transforming Management Control System Information into Performance
Accounting, Behavior and Organizations Research Conference (2012)
  • Michael T. Lee, Boise State University
  • Sally K. Widener, Rice University
Abstract
The evidence on the relations between reliance on management control systems and organizational learning is conflicting and inconclusive. One reason for this may be that both management control systems and organizational learning are multi-faceted. To shed insights on the existing inconclusive evidence, we draw on cognitive load and framing theories to argue that reliance on different types of management control systems is associated with different types of organizational learning. We use two popular SAP business intelligence modules to represent MCS. The Dashboard and Visualization (DV) module allows the firm to track key performance measures in a concise manner. The Query, Analysis, and Reporting (QAR) module allows the firm to query detailed information from the planning system. Using survey data from 241 respondents our structural equation model provides evidence that reliance on DV, generally thought of as a cybernetic system, is positively related to generative learning while reliance on QAR, generally thought of as a planning system, is positively related to adaptive learning. Moreover, the effect of each of the management control systems on performance outcomes is either partially or fully mediated by organizational learning. These results show the importance of recognizing the multi-faceted nature of both management control systems and organizational learning.
Keywords
  • Planning system,
  • Cybernetic system,
  • Management control systems,
  • organizational learning,
  • performance
Disciplines
Publication Date
October 5, 2012
Citation Information
Michael T. Lee and Sally K. Widener. "The Role of Organizational Learning in Transforming Management Control System Information into Performance" Accounting, Behavior and Organizations Research Conference (2012)
Available at: http://works.bepress.com/michael_lee/10/