Analysis of levers of control in a Slovenian company

The research subject of this paper refers to management control systems (MCS). In the paper, management control is studied from the Simons’ four levers of control framework point of view (i.e. diagnostic control systems, interactive control systems, beliefs systems, and boundary systems). The theoretical framework is tested by the use of an in-depth explanatory case study method to answer the following research question: How are MCS deployed by a case company according to Simons’ four levers of control and how does a company use them? The paper looks at tensions and balances between different styles of use of formal MCS, as well as between different types of control systems (e.g. formal vs. informal) to enhance understanding of the broader framework of overall control packages. The study’s contribution is that it incorporates a wider range of controls, including informal (i.e. social) mechanisms, to provide a more comprehensive analysis, as opposed to the majority of prior contingency studies focusing on a more limited range of controls.

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