Digitalisation as a driver of transformation for management control of small and medium-sized enterprises
Qualitative Research in Accounting & Management
ISSN: 1176-6093
Article publication date: 19 April 2024
Abstract
Purpose
This study aims to analyse the influence of digitalisation on the management control function of small and medium-sized enterprises (SMEs). In particular, it aims to illuminate how digitalisation influences management control elements, organisation and roles/competencies and to identify obstacles to digitalisation of management control in SMEs and measures taken to overcome them.
Design/methodology/approach
The study is based on guideline-supported expert interviews conducted with 14 financial managers from SMEs in Germany, Austria and Switzerland.
Findings
This study reveals the influence of digitalisation on management control elements, organisation, and roles/competencies. The automation and standardisation of management control processes result in new elements for management control, such as strategic support for management. In addition, the increased availability and transparency of data enable the use of instruments within a company that allow for quick analyses of the company's development. Digitalisation leads to the integration of management control into the corporate network and, thus, a change in the organisation of management control. It also triggers the expansion of management control competencies, especially IT competencies. A shortage of internal digitalisation resources, unclear corporate roadmaps, and a lack of managerial experience loom as central challenges for digitalising the management control function. Measures derived from the interviews can help SMEs overcome the obstacles to the digitalisation of management control.
Originality/value
This research is the first interview-based study of the impact of digitalisation on management control in SMEs, potential obstacles to that digitalisation, and measures to overcome those obstacles. Thus, it contributes to the emerging debate on factors that may explain why SMEs lag in terms of the digitalisation of their internal processes.
Keywords
Acknowledgements
An earlier version of this paper was presented at the 3rd EIASM conference on management accounting and control in SMEs in Assisi (Italy) on 20th and 21st April 2023. The authors would like to thank the participants of the conference, especially Erik-Pieter Janssen, Teemu Malmi and Fabio Santini, for their valuable feedback on earlier versions of this paper.
The authors would like to thank the editor and the anonymous reviewer for their helpful and valuable suggestions on earlier versions of this paper.
Citation
Fähndrich, J. and Pedell, B. (2024), "Digitalisation as a driver of transformation for management control of small and medium-sized enterprises", Qualitative Research in Accounting & Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/QRAM-08-2023-0149
Publisher
:Emerald Publishing Limited
Copyright © 2024, Emerald Publishing Limited