Full-text resources of CEJSH and other databases are now available in the new Library of Science.
Visit https://bibliotekanauki.pl


2015 | 1 | 3-31

Article title

An Influence of Strategic Awareness on Management Control: Evidence from Polish Micro, Small and Medium-sized Enterprises


Title variants

Languages of publication



Purpose: The paper investigates whether employees’ strategic awareness influences the shape of management control systems (MCSs) in Polish micro, small and medium-sized enterprises (mSMEs). Methodology: The study is based on data obtained from 223 companies between November 2010 and January 2012. The quantitative analysis used a set of variables which depicted MCSs: ‘goalsetting process’, ‘control framework’ and ‘organisation of control’. Strategic awareness was considered an independent variable. Findings: The results showed positive correlations between strategic awareness and considered variables. Regression models developed by the authors proved statistically valid. The study evidences, that increasing employees’ strategic awareness stimulates their participation in goal-setting, contributes to the development of more comprehensive MCSs, or may even imply formalisation of management control. Research limitations: The study does not include an analysis of the extent to which employees find MCSs useful in their work. This will be considered in future research. Another possible extension of the project is to identify factors which enable the capturing of the dynamic character of MCSs and their changes over time. Practical implications: The knowledge of MCSs does not explain whether or not the strategic orientation of a company stimulates a need for MCS. Such knowledge may be important to managers who have to face Polish employees’ general aversion to control. Originality: The study contributes to the limited body of knowledge in a scope of relations between employees’ strategic awareness and control mechanisms in Polish mSMEs.






Physical description




  • Wrocław University of Economics
  • Wrocław University of Economics


  • Abernethy, M.A. and Brownell, P. (1997). Management control systems in research and development organisations: the role of accounting, behaviour and personnel controls. Accounting, Organisations and Society, 22(3–4): 233–248.
  • Abernethy, M.A. and Brownell, P. (1999). The role of budgets in organisations facing strategic change: an explanatory study. Accounting, Organisations and Society, 24(3): 189–204.
  • Abernethy, A.M. and Lillis, A.M. (2001). Interdependencies in organisation design: a test in hospitals.Journal of Management Accounting Research, 13: 107–129.
  • Anthony, R.N. (1965). Planning and control systems: framework for analysis. Graduate School of Business Administration. Boston: Harvard University.
  • Anthony, R., Dearden, J. and Bedford, N.M. (1989). Management control systems, 6th ed., IL: Irwin, Homewood.
  • Asel, J., Posch, A. and Speckbacher, G. (2010). Squeezing or cuddling? The impact of economic crisis on management: control and stakeholder management. Review of Managerial Science, 5(2–3): 213–231.
  • Burns, Jr. and Waterhouse, J.H. (1975). Budgetary control and organisational structure. Journal of Accounting Research. Autumn: 177–203.
  • Chapman, C.S. and Chua, W.F. (2000). Technology, organisational form and accounting, 25th anniversary conference: Accounting, Organisations and Society. Oxford: Pergamon.
  • Chenhall, R.H. (2003). Management control systems design within its organisational context: findings from contingency-based research and directions for the future. Accounting, Organisationsand Society, 28: 127–168.
  • Chenhall, R.H. and Langfield-Smith, K. (1998). The relationship between strategic priorities, management techniques and management accounting: an empirical investigation using systemsapproach. Accounting, Organisations and Society, 23(3): 243–264.
  • Chong, V.K. (1996). Management accounting systems, task uncertainty and managerial performance: a research note. Accounting, Organisations and Society, 21(5): 415–421.
  • Cinquini, L. and Tenucci, A. (2008). Strategic management accounting and business strategy: a loose coupling. Journal of Accounting and Organisational Change, 6(2): 228–259.
  • Daft, R.L. and Macintosh, N.J. (1981). A tentative exploration into the amount and equivocality of information processing in organisational work units. Administrative Science Quarterly, 26(2): 207–244.
  • Dent, J.F. (1990). Strategy, organisation and control: some possibilities for accounting research. Accounting, Organisations and Society, 15: 3–25.
  • Dunk, A.S. (1992). Reliance on budgetary control, manufacturing process automation and production sub-unit performance: a research note. Accounting, Organisations and Society, 17(3–4): 185–239.
  • Govindarajan, V. (1988). A contingency approach to strategy implementation at the business-unit level: integrating administrative mechanism with strategy. Academy of Management Journal, 31(4): 826–853.
  • Govindarajan, V. and Gupta, A.K. (1985). Linking control systems to business unit strategy: Impact on performance. Accounting, Organisations and Society, 10(1): 51–66.
  • Govindarajan, V. and Fisher, J. (1990). Strategy, control systems and resource sharing: effects on business-unit performance, Academy Of Management Journal, 33(2): 259–285.
  • Gupta, A.K. and Govindarajan, V. (1984). Business unit strategy, managerial characteristics, and business unit effectiveness at strategy implementation. The Academy of Management Journal, 27(1): 25–41.
  • Harrison, G.L. (1992). The cross-cultural generalizability of the relation between participation, budget emphasis and job-related attitudes. Accounting, Organisations and Society, 17: 1–15.
  • Henri, J.F. (2006). Management control systems and strategy: A resource-based perspective. Accounting, Organisations and Society, 31(6): 529–558.
  • Herath, S.K. (2007). A framework for management control research. Journal of Management Development,26(9): 895–915.
  • Hopwood, A.G. (1987). The archaeology of accounting systems. Accounting, Organisations and Society, 12(3): 207–234.
  • Fisher, K. (1996). The impact of perceived environmental uncertainty and individual differences on management information requirements: A research note. Accounting, Organisations and Society, 21 (4): 361–369.
  • Fjałkowska, D. (2006). Konieczność i kierunki zmian w strukturze organizacyjnej przedsiębiorstwa implikowane wdrażaniem controllingu. Prace Naukowe Akademii Ekonomicznej im. OskaraLangego we Wrocławiu, 1125.
  • Inamdar, S.N. (2012). Alignment of strategy with structure using management control systems. Strategic Management Review, 6(1): 1–26.
  • Ittner, C.D. and Larcker, D.F. (1995). Total quality management and the choice of information and reward systems. Journal of Accounting Research, 33(Supplement): 1–34.
  • Jabnoun, N., Khalifah, A. and Yusuf, A. (2003). Environmental uncertainty, strategic orientation, and quality management: a contingency model. Quality Management Journal, 10(4): 17–31.
  • Kalagnanam, S.S. and Lindsay, R.M. (1999). The use of organic models of control in JIT forms: generalizing Woodward’s findings to modern manufacturing practices. Accounting, Organisationsand Society, 24(1): 1–30.
  • Kald, M., Nilsson, F. and Rapp, B. (2000). On strategy and management control: the importance of classifying the strategy of the business. British Journal of Management, 11: 197–212.
  • Kaplan, R.S. and Norton, D.P. (2000). Strategy-focused organisation. How balanced scorecard companies thrive in the new business environment. Boston, MA: Harvard Business School Press.
  • Kober, R., Ng, J. and Byron, J.P. (2007). The interrelationship between management control mechanisms and strategy. Management Accounting Research, 18: 425–452.
  • Langfield-Smith, K. (1997). Management control systems and strategy: A critical review. Accounting, Organisations and Society, 22(2): 207–232.
  • Langfield-Smith, K. (2007). A review of quantitative research in management control systems and strategy. In: C.S. Chapman, A.G. Hopwood, M.D. Shields (eds.), Handbooks of managementaccounting research, Vol. 2, Amsterdam, Elsevier.
  • Lawler, E.E. III (1986). High involvement management. San Francisco: Jossey-Bass.
  • Ledford, G.E. Jr. (1993). Employee involvement: lessons and predictions. In: J. Galbraith, E.E. Lawler, III & Associates (eds.), Organizing for the future the new logic for managing complex organisations.San Francisco: Jossey-Bass.
  • Marginson, D.E.W. (2002). Management control systems and their effects on strategy formation at middle-management levels: evidence from a U.K. organisation. Strategic Management Journal,23(11): 1019–1031.
  • Merchant, K. (1981). The design of the corporate budgeting system: influences on managerial behaviour and performance. The Accounting Review, 4: 813–829.
  • Miles, R.E. and Snow, C.C. (1978). Organisational strategy, structure, and process. New York: McGraw-Hill.
  • Mintzberg, H. (1987). Crafting strategy. Harvard Business Review, 65(4): 66–75.
  • Mintzberg, H. (1994). Rethinking strategic planning: part I: pitfalls and fallacies. Long Range Planning, 27(3): 12–21.
  • Mintzberg, H. and Waters, J.A. (1982). Tracking strategy in an entrepreneurial firm. Academy of Management Journal, 25(3): 465–499.
  • O’Conner, N. (1995). The influence of organisational culture on the usefulness of budget participation by Singaporean-Chinese managers. Accounting, Organisations and Society, 20: 383–403.
  • Otley, D. (1999). Performance management: a framework for management control systems research.Management Accounting Research, 10: 363–382.
  • Porter, M.E. (1980). Competitive strategy. New York: The Free Press.
  • Scott, T.W. and Tiessen, P. (1999). Performance measurement and managerial teams. Accounting, Organisations and Society, 24: 263–285.
  • Simons, R. (1987). Accounting control systems and business strategy: an empirical analysis. Accounting, Organisations and Society, 12(4): 357–374.
  • Simons, R. (1991). Strategic orientation and top management attention to control systems. Strategic Management Journal, 12: 49–62.
  • Simons, R. (1995). Levers of control: How managers use innovative control systems to drive strategic renewals. Boston: Harvard Business School Press.
  • Snodgrass, C. and Grant, J.H. (1986). Cultural influences on strategic planning and control systems.Advances in Strategic Management, 4: 205–228.
  • Stathakopoulos, V. (1998). Enhancing the performance of marketing managers - aligning strategy, structure and evaluation systems. European Journal of Marketing, 23(5–6): 536–558.
  • Steiner, G. (1979). Strategic planning. What every manager should know. New York: The Free Press.
  • Ueno, S. and Wu, A. (1993). The comparative influence of culture on budget control practices in the United States and Japan. International Journal of Accounting, 28: 17–39.
  • Whitley, R. (1999). Firms, institutions and management control: the comparative analysis of coordination and control systems. Accounting, Organisations and Society, 24(5–6): 507–524.

Document Type

Publication order reference


YADDA identifier

JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.