Balanced Scorecard in SMEs: Effects on innovation and financial performance

Empirical research on the consequences of the use of the balanced scorecard (BSC) has mostly been conducted in large firms. Previous findings are not easily applied to the small business literature, and assumptions about the benefits of BSC for small and medium-sized enterprises (SMEs) are not based on quantitative empirical evidence. We investigated the effects of SME’s use of BSC in terms of financial performance and innovation outcomes. Our arguments are based on the efficiency gains and potential flexibility losses associated with formalizing managerial practices in SMEs. We propose that the developmental stage of the firm may influence this trade-off. Based on a survey of 201 SMEs in Spain, we found that firms using BSC for feedforward control obtained better financial performance and presented higher levels of exploitative innovation. We also found that the positive effect of BSC on perceived and attained financial performance is stronger in more established SMEs

Pluralistic ignorance: Conceptual framework, antecedents and consequences

Purpose: The aim of this paper is to present, in an integrated manner, the knowledge acquired about pluralistic ignorance in the fields of social psychology, sociology and business. Particularly, to identify the factors that work as antecedents of pluralistic ignorance, as well as its consequences, in various research contexts. Design/methodology: This integrative study on pluralistic ignorance was conducted with the Proknow-C method, which allows the construction of knowledge through a structured process of search and identification of a bibliographic portfolio. Findings: The major results include the literature review and the identification of research networks such as Allport, O'Gorman, Shamir and Miller in the field social psychology and Harvey, Buckley and Halbesleben in organizations. A systemic analysis showed how pluralistic ignorance is formed, and clarified the difference between perceptual and inferential ignorance. The systemic analysis resulted in a model with seven social comparison errors that can be seen as antecedents of ignorance and a framework with its consequences, divided into three categories: people's attitude, people's behavior and organizational capabilities. Research limitations/implications: As with every research review, identification and review of the literature depend on the authors' world view. One of the difficulties in researching pluralistic ignorance is that it is studied in different areas of knowledge and from different perspectives. Originality/value: The knowledge acquired throughout more than eight decades of research on pluralistic ignorance is fragmented into different perspectives. However, what was shown by the systemic analysis of the literature is that studies are more often geared toward psychosocial issues and it is still not very well known how the causes and consequences of pluralistic ignorance interact with the management processes in the organizational environment. This review presents a model for guiding the process of formation of pluralistic ignorance and a guiding framework for future research, as far as its consequences are concerned.Peer Reviewe

Management control systems and real earnings management: Effects on firm performance

We examine an unexplored side of management control systems (MCS): their links with real earnings management. We propose that interactive use of MCS supports management in identifying, evaluating, selecting, and implementing real actions that conceptually would be classified as real earnings management (REM). Interactive MCS use is predicted to enhance managerial REM actions that retain the focus of the organization on its strategic objectives, leading to higher future performance. We test our research model empirically with survey and archival data. The results support our predictions. Finally, we explore the role of other levers of control.We thank the support of AECA in conducting the study. We also acknowledge financial contribution from Fundación COTEC-Programa de Innovación Abierta 2016 (PIA), the Spanish Ministry of Education and Science (ECO2016-77579), Spanish Ministry of Science and Innovation (PID2019-104163RA-I00 and PID2019-111143GB-C33), Santander Financial Institute, PRICIT (CAM-UAM-Professorship Excellence Program), and the Catedra UAM-Auditores Madrid

Relação entre os sistemas de contabilidade e de controle de gerenciamento e das distorções na avaliação e na tomada de decisões

Managers conduct evaluations and make decisions that can be biased and, therefore, cause adverse effects to the desired organizational performance. Identifying the biases and their causes have been widely studied in the accounting literature and management control in recent decades. The aim of this paper is to summarize the previous results, which allows a clear and comprehensive view of the role of Accounting Systems and Management Control (SCCG) in relation to biases in the decisions and assessments. As a result a conceptual framework is obtained in which SCCG are postulated as both generators and inhibitors of bias, according to its own characteristics and the characteristics of users. This result allows professionals (especially controllers) and academicians to know better processes using the information generated by SCCG and so act accordingly.Los directivos realizan evaluaciones y toman decisiones que pueden estar sesgadas y, como consecuencia, provocar efectos contrarios a los deseados en el rendimiento organizacional. La identificación de los sesgos y sus causas han sido ampliamente estudiadas en la literatura de contabilidad y control de gestión en las últimas décadas. El objetivo de este trabajo es sintetizar los resultados previos, lo cual permite disponer de una visión más clara y comprensiva del papel de los Sistemas de Contabilidad y Control de Gestión (SCCG) en relación a los sesgos en las decisiones y evaluaciones. Como resultado se obtiene un marco conceptual en el que los SCCG se postulan al mismo tiempo como generadores e inhibidores de sesgo, en función de sus propias características y de las características de los usuarios. Este resultado permite que profesionales (especialmente los controllers) y académicos conozcan mejor los procesos de utilización de la información generada por los SCCG y así actúen en consecuencia.Os diretores realizam avaliações e tomam decisões que podem estar equivocadas e, como consequência, provocar efeitos contrários aos desejados no rendimento organizacional. A identificação das distorções e suas causas têm sido amplamente estudadas na literatura de contabilidade e de controle de gerenciamento nas últimas décadas. O objetivo deste trabalho é sintetizar os resultados prévios, o qual permite dispor de uma visão mais clara e compreensiva do papel dos Sistemas de Contabilidade e de Controle de Gerenciamento (SCCG) em relação às distorções nas decisões e avaliações. Como resultado se obtém um marco conceitual no qual os SCCG se apresentam ao mesmo tempo como geradores e inibidores de distorção, em função de suas próprias características e das características dos usuários. Este resultado permite que profissionais (especialmente os controllers) e acadêmicos conheçam melhor os processos de utilização da informação gerada pelos SCCG e assim ajam de maneira consequente com isto

Quality of performance metrics, informal peer monitoring, and goal commitment

We examine whether the quality of performance metrics affects informal peer monitoring and, in turn, goal commitment. By fostering performance-oriented behaviours, performance metrics drive managers to involve themselves in learning and improvement efforts, building a fertile atmosphere for informal peer monitoring. We argue that the quality of performance metrics is positively associated with direct peer monitoring and negatively linked to indirect peer monitoring. Subsequently, we postulate that direct (indirect) peer monitoring is positively (negatively) associated with goal commitment. We use partial least squares (PLS) to analyse survey data from store managers in a large retail firm. Results provide overall support for our hypotheses

The importance given to food naturalness attributes by millennial university students

So-called natural food is one of the most significant current trends in the food business. Despite this trend, previous research on the measurement of naturalness has made no distinction between different groups of consumers. Therefore, the objective of this study is to explore the attributes important to millennial university students when evaluating food naturalness. The study is based on a questionnaire administered to a sample of 372 respondents. Using a partial least square (PLS) methodology, it performs a standard confirmatory factor analysis for measurement and validations. As a result, it identifies one attribute linked to how the food is grown and eight attributes associated to how it is produced and processed. These findings have several implications. Apart from testing previous scales in a millennial context, they confirm that market strategies must take different understandings of naturalness into account contingent upon the consumer group.Diputación de Ourense | Ref. INOU 17-10Universidade de Vigo | Ref. INOU 17-1

Management Control Systems and Clinical Experience of Managers in Public Hospitals

Healthcare authorities are encouraging managers in hospitals to acquire clinical experience and knowledge in order to better carry out and coordinate healthcare service delivery. The main objective of this paper is to analyse how the clinical experience of hospital managers is related to public health institutions’ performance. It is proposed that the effect of the clinical experience on operative and financial organizational performance is indirect through the mediating variables of perceived utility of management information and horizontal management control system. This paper analyses how these variables impact hospital performance through the data from a survey sent to 364 hospital managers in Brazil. The results show that managers’ clinical experience is related to higher perceived utility of historical, financial, short-term, and internal information, but not with horizontal control adoption in hospitals. Furthermore, our results show that, in hospitals, perceived utility of forecasted, non-financial, long-term, and external managerial information positively affects hospitals’ financial performance, while adoption of horizontal control management positively affects operational performance. Through showing evidence that clinical background could explain the differences not only in hospital service management but also in information capabilities and management control processes, this study offer meaningful implications for healthcare authorities and hospital managers involved in the development and implementation of strategies in the health sector

Relação entre os sistemas de contabilidade e de controle de gerenciamento e das distorções na avaliação e na tomada de decisões

Managers conduct evaluations and make decisions that can be biased and, therefore, cause adverse effects to the desired organizational performance. Identifying the biases and their causes have been widely studied in the accounting literature and management control in recent decades. The aim of this paper is to summarize the previous results, which allows a clear and comprehensive view of the role of Accounting Systems and Management Control (SCCG) in relation to biases in the decisions and assessments. As a result a conceptual framework is obtained in which SCCG are postulated as both generators and inhibitors of bias, according to its own characteristics and the characteristics of users. This result allows professionals (especially controllers) and academicians to know better processes using the information generated by SCCG and so act accordingly.Los directivos realizan evaluaciones y toman decisiones que pueden estar sesgadas y, como consecuencia, provocar efectos contrarios a los deseados en el rendimiento organizacional. La identificación de los sesgos y sus causas han sido ampliamente estudiadas en la literatura de contabilidad y control de gestión en las últimas décadas. El objetivo de este trabajo es sintetizar los resultados previos, lo cual permite disponer de una visión más clara y comprensiva del papel de los Sistemas de Contabilidad y Control de Gestión (SCCG) en relación a los sesgos en las decisiones y evaluaciones. Como resultado se obtiene un marco conceptual en el que los SCCG se postulan al mismo tiempo como generadores e inhibidores de sesgo, en función de sus propias características y de las características de los usuarios. Este resultado permite que profesionales (especialmente los controllers) y académicos conozcan mejor los procesos de utilización de la información generada por los SCCG y así actúen en consecuencia.Os diretores realizam avaliações e tomam decisões que podem estar equivocadas e, como consequência, provocar efeitos contrários aos desejados no rendimento organizacional. A identificação das distorções e suas causas têm sido amplamente estudadas na literatura de contabilidade e de controle de gerenciamento nas últimas décadas. O objetivo deste trabalho é sintetizar os resultados prévios, o qual permite dispor de uma visão mais clara e compreensiva do papel dos Sistemas de Contabilidade e de Controle de Gerenciamento (SCCG) em relação às distorções nas decisões e avaliações. Como resultado se obtém um marco conceitual no qual os SCCG se apresentam ao mesmo tempo como geradores e inibidores de distorção, em função de suas próprias características e das características dos usuários. Este resultado permite que profissionais (especialmente os controllers) e acadêmicos conheçam melhor os processos de utilização da informação gerada pelos SCCG e assim ajam de maneira consequente com isto