Since 2014
Management Control Systems Design of Malaysian Research and Development Units
Asian Journal of Accounting and Governance
View Archive Info| Field | Value | |
| Title |
Management Control Systems Design of Malaysian Research and Development Units
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| Creator |
Kasim, Khairul Naziya
Amiruddin, Rozita Md Auzair, Sofiah |
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| Subject |
Management Control System; task uncertainty; research and development
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| Description |
The nucleus for any high income economy is its successful innovation agenda. This gives rise to the importance of well-managed research and development (R&D) activities for the economy. To address this issue, the study aims to understand the relationships between task uncertainty and Management Control Systems (MCS) in R&D units of Malaysian manufacturing firms. Specifically, the relationship between two dimensions of task uncertainty, task variability and task analyzability; and four characteristic of MCS are investigated. The MCS characteristics were conceptualized using the framework that includes the MCS degree of formalization; degree of tightness; degree of influence and participation involved; and the scope of information used. This study suggests fit between task uncertainty and MCS will enhance R&D performance. Survey questionnaires were administered to managers of R&D units in 61 manufacturing companies operating in Malaysia. Using moderated regression analysis, the results showed that high unit performance was reported when there was interaction (1) between task non-analyzability and controls formalization, (2) between task variability and influence and participation of subordinates in control process, and (3) between task variability and scope of information. These findings suggest that the two dimensions of task uncertainty affect different MCS characteristics in a different manner to produce high R&D unit performance. This study provides important implication for management as it involves a greater understanding of the governance structure of the R&D unit. The finding suggests that the design of the MCS needs to take into account information gaps among employees, which contribute to uncertainty when performing their work tasks.
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| Publisher |
Penerbit UKM
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| Contributor |
—
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| Date |
2014-06-18
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://ejournal.ukm.my/ajac/article/view/6515
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| Source |
Asian Journal of Accounting and Governance; Vol 3 (2012); 49-60
2180-3838 |
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| Language |
eng
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| Relation |
http://ejournal.ukm.my/ajac/article/view/6515/2794
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| Rights |
Authors who publish with this journal agree to the following terms:Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
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