Skip Navigation Links
Journal of Environmental Accounting and Management
Dmitry Kovalevsky (editor), Jiazhong Zhang(editor)
Dmitry Kovalevsky (editor)

Climate Service Center Germany (GERICS), Helmholtz-Zentrum Hereon, Fischertwiete 1, 20095 Hamburg, Germany

Fax: +49 (0) 40 226338163 Email: dmitry.v.kovalevsky@gmail.com

Jiazhong Zhang (editor)

School of Energy and Power Engineering, Xi'an Jiaotong University, Xi'an, Shaanxi Province 710049, China

Fax: +86 29 82668723 Email: jzzhang@mail.xjtu.edu.cn


Effects of the Environmental Strategy and Management Control System Package on Managerial Performance

Journal of Environmental Accounting and Management 9(4) (2021) 429--443 | DOI:10.5890/JEAM.2021.12.007

Ilse M. Beuren , Patricia V. C. Vaz

Download Full Text PDF

 

Abstract

This study examines the effects of the environmental strategy and the Management Control System (MCS) Package on management performance in Brazilian companies. A questionnaire prepared by Roetzel et al (2014) was applied to the companies listed as the 150 best companies to work in Brazil, and the sample consists of 73 respondents. Structural equation modeling was used to analyze the hypotheses. The environmental strategy positively influences the MCS Package. The MCS Package positively influences managerial performance. It was also found that cybernetic and cultural controls are the package's most comprehensive elements of MCS, a result that is consistent with Roetzel et al (2014), however, in the Brazilian scenario, were the administrative controls and not the remuneration and rewards that demonstrated less important role. The analysis of the interaction of these elements can instigate managers as to the importance of studying environmental issues in the Brazilian scenario, in order to broaden the discussion on an integrated environmental policy. Analysis of the effects of the environmental strategy and the MCS Package on management performance contribute to the consolidation of theoretical principles and can be essential for proposing sustainable development policies. Although these interactions were tested in the study by Roetzel et al (2014), the perception of managers may differ in contexts with different environmental management strategies.

References

  1. [1] Abernathy, M.A. and Brownell, P. (1997), Management control systems in research and development organizations: The role of accounting, behavior and personnel controls, Accounting, Organizations and Society, 22(3/4), 233-248.
  2. [2] Aguiar, A.B., Pace, E.S.U., and Frezatti, F. (2009), An\{a}lise do inter-relacionamento das dimens\~{o}es da estrutura de sistemas de controle gerencial: Um estudo piloto, RAC. Revista de Administra\c{c\~{a}o Contempor\^{a}nea, }3(1), 1-21.
  3. [3] Al-Mawali, H., Sharif, A. Al, Rumman, G.A., and Kerzan, F. (2018), Environmental strategy, environmental management accounting and organizational performance: Evidence from the United Arab Emirates Market, Journal of Environmental Accounting and Management, 6(2), 105-114.
  4. [4] Anthony, R. (1965), Planning and control systems: A framework for analysis, Boston, MA: Harvard Business Press.
  5. [5] Berry, A.J., Coad, A.F., Harris, E.P., Otley, D.T., and Stringer, C. (2009), Emerging themes in management control: A review of recent literature, The British Accounting Review, 41(1), 2-20.
  6. [6] Beuren, I.M. and Teixeira, S.A. (2014), Evaluation of management control systems in a higher education institution with the performance management and control, Journal of Information Systems and Technology Management, 11(1), 169-192.
  7. [7] Durden, C. (2008), Towards a socially responsible management control system, Accounting, Auditing and Accountability Journal, 21(5), 671-694.
  8. [8] Feng, T., Cai, D., Wang, D., and Zhang, X. (2016), Environmental management systems and financial performance: The joint effect of switching cost and competitive intensity, Journal of Cleaner Production, 113, 781-791.
  9. [9] Flamholtz, E., Das, T.D., and Tsui, A.S. (1985), Toward an integrative framework of organizational control, Accounting Organization and Society, 10(1), 35-50.
  10. [10] Fornell, C. and Larcker, D.F. (1981), Evaluating Strctural Equation Models with unobservable variables and measurement error, Journal of Marketing Research, 18(1), 39-50.
  11. [11] Gaski, J.F. and Nevin, J.R. (1985), The differential effects of exercised and unexercised power sources in a marketing channel, Journal of Marketing Research, 22(1), 130-142.
  12. [12] Grabner, I. and Moers, F. (2013), Management control as a system or a package? Conceptual and empirical issues, Accounting, Organizations and Society, 38(6-7), 407-419.
  13. [13] Guerrero-Baena, M.D., G\{o}mez-Lim\{o}n, J.A., and Fruet, J.V. (2015), A multicriteria method for environmental management system selection: An intellectual capital approach, Journal of Cleaner Production, 105(20), 428-437.
  14. [14] Hair Jr., J.F., Black, W.C., Babin, B.J., Anderson, R.E., and Tatham, R.L. (2009), An\{alise multivariada de dados} (6 ed.), Porto Alegre: Bookman.
  15. [15] Hanafi, E. and Fatma, Z. (2015), The effect of the integration between levers of control and swot analysis on organizational performance: Balanced Scorecard approach. International Journal of Academic Research, 7(1), 215-221.
  16. [16] Hared, B.A., Abdullah, Z., and Huque, S.M.R. (2013), Management Control Systems: A review of literature and a theoretical framework for future researches, European Journal of Business and Management, 5(26), 1-13.
  17. [17] Henri, J.F. (2006), Management control systems and strategy: A resource-based perspective, Accounting, Organizations and Society, 31(6), 529-558.
  18. [18] Herath, S.K. (2007), A framework for management control research, Journal of Management Development, 26(9), 895-915.
  19. [19] Langfield-Smith, K. (1997), Management control systems and strategy: A critical review, Accounting, Organizations and Society, 22(2), 207-232.
  20. [20] Malmi, T. and Brown, D.A. (2008), Management control systems as a package: Opportunities, challenges and research directions, Management Accounting Research, 19(4), 287-300.
  21. [21] Mintzberg, H. and Quinn, J.B. (2001), O processo da estrat\{egia} (3 ed.), Porto Alegre: Bookman.
  22. [22] Murillo-Luna, J.L., Garc\{e}s-Ayerbe, C. and Rivera-Torres, P. (2011), Barriers to the adoption of proactive environmental strategies, Journal of Cleaner Production, 19(13), 1417-1425.
  23. [23] Otley, D. (1999), Performance management: A framework for management control systems research, Management Accounting Research, 10(4), 363-382.
  24. [24] Otley, D. (2001), Extending the boundaries of management accounting research: Developing systems for performance management, The British Accounting Review, 33(3), 243-261.
  25. [25] Otley, D. (2003), Management control and performance management: Whence and whither? The British Accounting Review, 35(4), 309-326.
  26. [26] Pallant, J. (2007), SPSS survivor manual: A step by step guide to data analysis using SPSS for Windows, New York, NY: McGraw Hill.
  27. [27] Polizelli, D.L., Petroni, L.M., and Kruglianskas, I. (2005), Gest\~{a}o ambiental nas empresas l\{\i}deres do setor de telecomunica\c{c}\~{o}es no Brasil, Revista de Administra\c{c\~{a}o da USP}, 40(4), 309-320.
  28. [28] Porter, M. (1989), Vantagem competitiva: Criando e sustentando um desempenho superior (12 ed.). Rio de Janeiro, RJ: Campus.
  29. [29] Ramos, E.M. (2009), Direito ambiental comparado Brasil-Alemanha-EUA: Uma an\{alise exemplificada dos instrumentos ambientais brasileiros \`{a} luz do direito comparado}, Maring\{a}, PR: Midiograf II.
  30. [30] Rehman, S.U., Bhatti, A., Kraus, S., and Ferreira, J.J.M. (2020), The role of environmental management control systems for ecological sustainability and sustainable performance, Management Decision, ahead-of-print. https://doi.org/10.1108/MD-06-2020-0800
  31. [31] Ringle, C.M., Silva, D., and Bido, D. (2014), Modelagem de equa\c{c}\~{o}es estruturais com utiliza\c{c}\~{a}o do SmartPLS, Revista Brasileira de Marketing, 13(2 ed. espec.), 56-73.
  32. [32] Roetzel, P.G., Stehle, A., and Pedell, B. (2014), Using an environmental management control system to translate environmental strategy into managerial performance, American Accounting Association Annual Meeting and Conference on Teaching and Learning in Accounting, Atlanta, Georgia, USA.
  33. [33] Roetzel, P.G., Stehle, A., Pedell, B., and Hummel, K. (2019), Integrating environmental management control systems to translate environmental strategy into managerial performance, Journal of Accounting {$\&$ Organizational Change}, 15(4), 626-653.
  34. [34] Sandelin, M. (2008), Operation of management control practices as a package: A case study on control system variety in a growth firm context, Management Accounting Research, 19(4), 324-343.
  35. [35] Simons, R. (1995), Levers of control, Boston, MA: Harvard Business School Press.
  36. [36] Wijethilake, C., Munir, R., and Appuhami, R. (2018), Environmental innovation strategy and organizational performance: Enabling and controlling uses of management control systems, Journal of Business Ethics, 151, 1139-1160.