One of the central, but unclear, concepts in the LOC framework is the notion of balance.Ī management control system (MCS) is a system which gathers and uses information to evaluate the performance of different organizational resources like human, physical, financial and also the organization as a whole in light of the organizational strategies pursued. The framework, however, has also been criticized for being vague and ambiguous. The impact of the Levers of Control (LOC) framework on the accounting literature is undeniably large. We use the Levers of Control (LoC) framework to examine the relationships between a system of controls, empowerment, and creativity. However, often they are regarded as conflicting organizational aspects with differing aims. Qualitative Research in Accounting & Management Emerald Publishing Management control as an interdisciplinary subjectīoth control and creativity are important drivers of organizational success. Past research devoted to strategic change and MCS has not documented this phenomenon. Originality/value – This case study demonstrates how interactive and beliefs systems work together with diagnostic and boundary systems in the context of change in an organization. Practical implications – The findings suggest that a corporate takeover is an important phase for any organization, as it involves a change in the competitive environment and strategy, and needs to be facilitated by a change in the MCS to create and sustain superior performance. Corresponding to the strategic change, the PMS was affected, with specific implications on Simons' four levers of control: interactive, diagnostic, beliefs, and boundary systems. Findings – The findings reveal that the takeover resulted in changes in the firm's competitive forces (threat of potential entrants, bargaining power of buyers, threat of substitute products or services, bargaining power of suppliers, and rivalry among existing firms), and therefore the firm altered its strategy to change the rules of competition in its favor. To provide empirical evidence on this issue, face‐to‐face interviews and archival data are used. Design/methodology/approach – This paper uses Michael Porter's theory of competitive advantage and Robert Simons' levers of control framework to illustrate and interpret changes in the PMS within an Australian multinational subsidiary following its takeover by an overseas corporation. Purpose – The purpose of this article is to explore how the strategic change following a corporate takeover impacted the nature and extent of use of the firm's management control systems (MCS), in particular its performance measurement system (PMS). Competitive forces and the levers of control framework in a manufacturing setting A tale of a multinational subsidiary Competitive forces and the levers of control framework in a manufacturing setting A tale of a.
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