Management Control Systems and Strategy Change in Buyouts
37 Pages Posted: 18 Jan 2003
Date Written: October 2002 1,
Abstract
The impact of management buy-outs (MBO) on strategy and managementcontrol systems (MCS) is little understood. Previous research by Jones(1992) focused on efficiency-enhancing buy-outs that were a feature ofthe early development of the market. However, MBOs are heterogeneousand more recent developments have involved ownership changes thatstimulate entrepreneurial practices. The novel contribution of thispaper is to use Simons' (1995) classification of beliefs systems,boundary systems, diagnostic and interactive control systems to extendJones' study to these newer forms of MBO. Within-case analysis andcross-case comparisons from four buyout firms are used to capture theinteraction between management control systems and competitivestrategy formulation, implementation and modification. This evidencesupports arguments that buy-out managers undertake efforts inbalancing the traditional feedback systems with the newer systems thatstimulate opportunity seeking and learning.
Keywords: management control systems, strategy change, management buyouts
JEL Classification: M, M10, L2
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
The Business Cycle and the Life Cycle
By Paul Gomme, Richard Rogerson, ...
-
Human Capital and Labor Supply: A Synthesis
By Alan S. Blinder and Yoram Weiss
-
Demographic Differences in Cyclical Employment Variation
By Kim B. Clark and Lawrence H. Summers
-
Learning by Doing and Aggregate Fluctuations
By Russell Cooper and Alok Johri
-
Entrepreneurial Orientation in Management Buy-Outs and the Contribution of Venture Capital
By Hans Bruining and Mike Wright
-
By John C. Ham and Kevin T. Reilly
-
Business Cycle Fluctuations and the Life Cycle: How Important is On-the-Job Skill Accumulation?
-
The Demand for Youth: Implications for the Hours Volatility Puzzle
By Nir Jaimovich, Seth Pruitt, ...
-
Social Security and Retirement: Evidence from the Canada Time Series