Sujeewa Damayanthi, Kumudu Kapiyangoda and Tharusha Gooneratne
The focused case is a “disguised case” developed based on a real-life apparel company in Sri Lanka. The authors have disguised the company name and have not revealed the identity…
Abstract
Research methodology
The focused case is a “disguised case” developed based on a real-life apparel company in Sri Lanka. The authors have disguised the company name and have not revealed the identity of the key respondents and any data, which makes the firm obvious. However, the processes and practices reported represent the actual scenario of the company (gathered through interviews done mainly with the case protagonist, General Manager (GM) – Risk and Controls) and the authors have not fabricated any data.
Case overview/synopsis
Having established itself as a pioneer in the apparel industry in Sri Lanka, Dots & Lines reached the pinnacle of its performance in 2019. Following the outbreak of COVID-19, the situation turned unfavorable: global customers canceled orders by the end of the first quarter of 2020. It experienced settlement delays, increased freight charges and supply chain barriers. The virus spread among the operational staff, leading to health and safety issues and absenteeism. On April 2020, the executive committee gathered and decided to form a position titled “General Manager (GM) – Risk and Controls” and a team to turn around the company. Dots & Lines witnessed the harvest of the risk management turnaround measures pioneered by GM – Risk and Controls, from the first quarter of 2021 with impressive revenue and profit figures. It developed a pool of key strategic customers, while key performance indicators dashboards and the risk matrix provided vital insights in moving forward.
Complexity academic level
The case, Dots & Lines is written for use in undergraduate and graduate-level classes in business administration and management degree programs. The focus aligns with discussions on industry competition, controls and risk management. Of further importance, the case is applicable to discussions on topics in strategic management accounting courses.
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Kumudu Kapiyangoda and Tharusha Gooneratne
This paper aims to explore how management control systems (MCS) of an operating company (Delta Lanka) of a multinational corporation (MNC) is shaped through the interplay between…
Abstract
Purpose
This paper aims to explore how management control systems (MCS) of an operating company (Delta Lanka) of a multinational corporation (MNC) is shaped through the interplay between external institutional influences via global prescriptions stemming from the parent company culture and localisation needs as suited to cultural context of the operating company through the agency of practice level actors.
Design/methodology/approach
Theoretically, the paper draws upon institutional theory, more specifically the notions of external institutions and agency of practice level actors, while methodologically, it adopts the single-site case study approach under the qualitative tradition.
Findings
The findings suggest that given the complex setting of being encountered with multiple cultural ramifications, MCS of Delta Lanka encompasses compulsory elements instigated by the parent company, and non-compulsory elements as attuned to the realities of the local culture of the operating company. The authors show how imposed practices in the institutional environment by the parent company (homogeneity) interact with agentic aspects of actors in the operating company giving rise to practice variation (heterogeneity) in the adoption of controls at the local level.
Practical implications
The paper offers insights on how practicing managers in operating companies of MNCs could formulate control systems by striking a balance between multiple cultural considerations (of the parent and operating company). This would be a lesson for managers of other firms (especially MNCs).
Originality/value
By bringing together multitude of cultural dimensions relating to the parent company and operating company into a single study in the area of management control, this paper adds to the burgeoning literature on the interplay between external institutions, agency of actors, culture and MCS. It also contributes to the on-going debate on MCS research taking a post-Hofstede orientation while extending the use of institutional theory in management accounting research in MNCs.
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Kumudu Kapiyangoda and Tharusha Gooneratne
This paper aims to review prior management accounting research founded upon family businesses. It presents the status quo, uncovers gaps in existing literature and postulates…
Abstract
Purpose
This paper aims to review prior management accounting research founded upon family businesses. It presents the status quo, uncovers gaps in existing literature and postulates avenues for future scholarly inquiry.
Design/methodology/approach
In carrying out this review, a search was conducted accessing three search engines: Emerald insight, JSTOR and ScienceDirect encompassing journals which have published family business and management accounting research. Accordingly, 50 papers spanning 28 journals were identified as relevant and selected for review.
Findings
The review suggests that amid heightened research interest, while literature on management accounting in the realm of family firms has accelerated across time, how peculiarities of family businesses get articulated in the management accounting practices they deploy deserve further study. It also became evident that currently little is known on the use of various traditional and contemporary control practices, sustainability accounting and infusion of new management accounting ideas as well as the use of informal controls, which are very real to family businesses.
Research limitations/implications
This paper contributes to the on-going knowledge debates on management accounting in family businesses and provides directions to potential researchers by illuminating the status quo of research and issues of significance which so far has been neglected.
Practical implications
This review, being placed at the nexus of management accounting and family businesses, offers lessons and insights to family business owners, managers and policymakers for the smooth functioning of businesses using management accounting insights.
Originality/value
Although a vast majority of family business studies in management accounting and controls have been published from 2013 onward, existing reviews capture publications up to 2012. Building upon, yet moving beyond reviews to date, and encompassing latest publications, this paper advances our understanding on the state of management accounting research in the field of family business.