From Detecting Deviations to Preventing Shocks: The Value of IT for Management Controls

JMAR Research Conference in conjunction with 2012 Management Accounting Section Research and Case Conference

31 Pages Posted: 5 Jul 2013

See all articles by Manuel Wiesche

Manuel Wiesche

Technische Universtität München

Michael Schermann

Santa Clara University - Operations and Management Information Systems

Helmut Krcmar

Technische Universität München (TUM)

Date Written: June 11, 2013

Abstract

Information technology (IT) has a tremendous impact on management control through new ways of retrieving and processing information about performance deviations and control effectiveness. This paper explores the role of IT-enabled management controls on the example of information systems for Governance, Risk Management, and Compliance (GRC IS). We apply a grounded theory approach to structure value drivers of GRC IS into a framework. We relate the value drivers to existing theories to understand the impact of IT on management controls. We argue that IT serves as catalyzer for more effective management controls by enabling managers to exploit and explore richer data about performance deviations and potential shocks. We structure the catalyzing effects as value drivers of IT in a balanced control model. This paper uses the lens of management theories on GRC IS and establishes a research agenda for understanding the catalyzing function of IT for management controls by suggesting links between previously separate theories.

Suggested Citation

Wiesche, Manuel and Schermann, Michael and Krcmar, Helmut, From Detecting Deviations to Preventing Shocks: The Value of IT for Management Controls (June 11, 2013). JMAR Research Conference in conjunction with 2012 Management Accounting Section Research and Case Conference, Available at SSRN: https://ssrn.com/abstract=2277874

Manuel Wiesche (Contact Author)

Technische Universtität München ( email )

Arcisstrasse 21
Munich, DE 80333
Germany

Michael Schermann

Santa Clara University - Operations and Management Information Systems ( email )

500 El Camino Real
Santa Clara, CA 95053
United States

Helmut Krcmar

Technische Universität München (TUM) ( email )

Arcisstrasse 21
Munich, DE 80333
Germany

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