How managerial capabilities of cognitive and behavioural complexity enable dynamic tension between management controls
Qualitative Research in Accounting & Management
ISSN: 1176-6093
Article publication date: 7 June 2023
Issue publication date: 14 July 2023
Abstract
Purpose
Inspired by leadership research, this paper aims to further the literature on management controls (MCs) by highlighting two managerial capabilities that cultivate dynamic tension. More specifically, we explore how countervailing MCs can be designed and used to create a coordinated and adaptable organisation. These capabilities reveal key insights into dynamic tension because they help us to understand the role of managers and why, how and when some companies succeed in creating dynamic tension while others struggle.
Design/methodology/approach
These research objectives are met through a case study on a global manufacturing company called GLOCOMP to preserve anonymity. The authors chose GLOCOMP because it comprises many internal units that must work in a coordinated fashion. However, it is equally important that the units are flexible enough to adapt to their unique local conditions. These two aspirations must be balanced, which necessitates dynamic tension between MCs. Hence, the case provides fertile ground for us to investigate the capabilities that help managers design and use countervailing MCs.
Findings
The empirical setting shows that cognitive and behavioural complexity are the keys to successfully designing and using countervailing loose and tight MCs concurrently. Using MCs that work in opposite directions produces a dynamic tension that helps individual units to coordinate their internal supply chains while adapting to fulfil unique roles within the company.
Originality/value
This paper extends previous research by exploring two specific managerial capabilities that enable dynamic tension – cognitive and behavioural complexity. The authors provide specific insights into how managers can create dynamic tension and, further, by highlighting the specific capabilities that give rise to dynamic tension, the authors outline a procedural perspective where a manager’s capabilities and dynamic tension inform one another. The resulting virtuous circle extends the understanding of the relationship between dynamic tension and managerial expertise beyond what the authors currently know as a linear cause-effect correlation.
Keywords
Acknowledgements
Erratum: It has come to the attention of the publisher that the affiliation details for the authors of article: Toldbod, T. and Dumay, J. (2023), “How managerial capabilities of cognitive and behavioural complexity enable dynamic tension between management controls”, Qualitative Research in Accounting and Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/QRAM-05-2022-0091 were inaccurate. The affiliation of Thomas Toldbod was incorrectly listed as Department of Accounting and Corporate Governance, Macquarie University, Sydney, Australia, and the affiliation of John Dumay was incorrectly listed as Center for Corporate Reporting, Finance and Tax, Nyenrode Business Universiteit, Breukelen, the Netherlands and Aaalborg University Business School, Aalborg University, Aalborg, Denmark.
The affiliation of Thomas Toldbod has been changed to Aalborg University Business School, Aalborg University, Aalborg, Denmark, and the affiliation of John Dumay has been changed to Department of Accounting and Corporate Governance, Macquarie University, Sydney, Australia, Center for Corporate Reporting, Finance and Tax, Nyenrode Business Universiteit, Breukelen, the Netherlands, and Aalborg University Business School, Aalborg University, Aalborg, Denmark. The journal sincerely apologises to its readers.
The authors would like to thank James Guthrie, Berend van der Kolk, Robin Roslender, and Christian Nielsen, as well as the attendees of the 8th EIASM Performance Measurement Conference in Nice in 2015 and the Nordic Accounting Conference at Copenhagen Business School in 2018, for providing valuable feedback on an earlier version of our paper. Finally, we would like to thank the two anonymous reviewers and editor Lukas Goretzki for their insightful comments throughout the review process.
Funding: There is no funding in relations to this paper.
Citation
Toldbod, T. and Dumay, J. (2023), "How managerial capabilities of cognitive and behavioural complexity enable dynamic tension between management controls", Qualitative Research in Accounting & Management, Vol. 20 No. 4, pp. 515-542. https://doi.org/10.1108/QRAM-05-2022-0091
Publisher
:Emerald Publishing Limited
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