New integrated information systems and management control change: theoretical premises and empirical evidences

Citation

Pia Maraghini, M. (2009), "New integrated information systems and management control change: theoretical premises and empirical evidences", Journal of Accounting & Organizational Change, Vol. 5 No. 3. https://doi.org/10.1108/jaoc.2009.31505cad.002

New integrated information systems and management control change: theoretical premises and empirical evidences

Article Type: Doctoral research abstracts From: Journal of Accounting & Organizational Change, Volume 5, Issue 3

Purpose – The purpose of this thesis is to explore the process of change and to examine in more depth the nature of the changes in management control which accompany the adoption of the new information and communication technologies (ICT), especially integrated information systems.Design/methodology/approach – After having reviewed the possible relationships between ICT and management control processes of change and described the main changes which could involve the management control function due to the adoption of a new integrated information system, the thesis provides detailed empirical evidence of such a change process by means of an interpretative longitudinal case study concerning a medium-size cooperative society based in Italy. Acknowledging the complexity of organizational life, the field study does not aspire to isolate and define how and by how much ICT has been a driver of the management control change, but rather to explore the whole process of change in order to appreciate the diversity of interrelated influences which have shaped its trajectory and how these influences interacted with each other. Among this inter-play of influences, the study then investigates the particular role played by the two-way relationship between ICT and management control (because ICT can both shape and be shaped by the management control).Findings – The thesis looks at ICT as one of the factors that could affect (and which is affected by) the continuous process of management control change. Particularly, the research highlights that the adoption of new ICT can lead to a change of management control. However, it also shows that if the implementation actually does modify management control, how and with what magnitude is neither predictable a priori, nor generalizable. It depends on the starting situation of the specific business organization, on this history and culture (in this sense, the process of change has a “path-dependent” nature). Furthermore, these various factors and the ones which come from the external contest – which are different not only from one company to another, but also within the same organization if two different points in time are considered – interact with each other in a continuous, dynamic and dialectical process which make it very difficult, if not impossible, to agree on what has determined the trajectory of change and to what degree. The case study shows that the implementation of the new integrated information system has opened up several opportunities for the business management and in particular for the management control. However, so far, only part of these opportunities have been exploited. Furthermore, while it could be acknowledged that the new system facilitates the changes in management control both in its material and immaterial dimensions, it could not be concluded that they are the result of the implementation of the new system. Many other factors have interacted within the process of management control change. For example, of paramount importance has been the controller’s determination to enact the change. The case study analyzes these factors and the way in which they have jointly facilitated and/or hindered the management control change.Originality/value – Recognizing that management control change is a continuous organizational process (rather than an outcome), the trajectory of which is shaped by an incessant inter-play of several influences, the study contributes to explore the way in which the implementation of a new integrated information system plays a role to this process, particularly in small and medium enterprises (SMEs). Nowadays, several factors are pushing within SMEs towards the adoption of more sophisticated (or structured at least) management control systems. To stimulate and facilitate such a change, it is often suggested to adopt the new ICT, especially integrated information systems. In effect, many changes could be expected due to increased integration of the business information flows and consequently easier and faster access to operational data. Also, it is a common practice that when major scale changes are carried out regarding information systems, the logic of accounting and control also becomes a subject of evaluation and possible change. However, so far there exists little published scientific evidence on the actual manifestation of these changes. Then these studies seldom focus on management control, especially in SMEs.

Keywords: Change management, Information systems, Small to and medium-sized enterprises

Research type – Qualitative study

Award institute – University of Florence, Italy

Supervisor – Professor Angelo Riccaboni

Contact e-mail – maraghini@unisi.it

DOI: 10.1108/18325910910987016

Maria Pia MaraghiniDepartment of Business Administration and Social Studies, Faculty of Economics, University of Siena, Siena, Italy