Big data and management control systems change: the case of an agricultural SME

A literature review on the impact of digitalisation on management control

Digitalisation affects management control (MC). It leads to changes in the way MC activities are organised, performed and analysed. Companies of all industries, locations and sizes have to adapt their MC to digital circumstances, starting with the understanding and delimitation of MC tasks, through the modified application of MC instruments and the consideration of behavioural aspects of MC, to the organisation of the MC function within the company. This paper presents a systematic review of the literature according to Tranfield et al. (Br J Manag 14:207–222, 2003), focusing on the impact of digitalisation on MC. A comprehensive overview of scientific literature is provided by reviewing 166 highly rated accounting journals (based on multiple international journal ratings) and analysing 116 articles from January 2000 to August 2022. Based on the MC framework developed by Guenther (J Manag Control 23:269–290, 2013), the identified studies are categorised into the following research dimensions: tasks, instruments, organisation and behavioural aspects. Multiple studies highlight the continuous development of the MC function under the impact of digitalisation, including the extension of MC tasks, the adaptation of existing MC instruments and creation of new MC instruments, positive and negative behavioural aspects of digitalisation on MC and the establishment of new MC organisation models. In addition to the qualitative content analysis, this literature review also includes an analysis of the methods applied and illustrates their changes over time. This study reveals research gaps in relation to the current MC research and presents potential starting points for future research.

The illusion of data-driven decision making – The mediating effect of digital orientation and controllers’ added value in explaining organizational implications of advanced analytics

This study extends existing research on the implications of advanced analytics. Drawing on organizational information processing theory (OIPT), hypotheses are developed for the relationships between information technology orientation, the use of advanced analytical techniques, the ability of information to be utilized in a decision context, and data-driven decision-making. Using survey data from 176 medium-sized and large firms, a mediator model was proposed and tested with structural equation modelling. The data show that the significant direct effect of technology orientation on analytical practice is greatly enhanced by the digital orientation of the firms. As suggested by OIPT, controllers are argued to act as integrators in the sense-making of data-centric mechanisms. The results of the model indicate that the added value of controllers mediates the effect of advanced analytics on the ability of analytical information to be utilized in a decision context. Importantly, the data did not corroborate any relationship between the extent to which available information is able to support decision making and reliance on this information in the decision-making process. It suggests that the strengthening of data-driven decision-making does not overshadow intuition, as assumed based on the expected opposite movement of the two variables. This finding shows the importance of a more detailed and theoretically grounded investigation on how advances in analytical capabilities are (not) changing managerial decision-making processes.

The use of non-financial performance measures for managerial compensation: evidence from SMEs

This study explores the relationship between contextual variables—strategy, perceived environmental uncertainty (PEU), and decentralization—and the use of non-financial performance measures (NFPM) for managerial compensation in small and medium enterprises (SMEs). Using questionnaire data from SMEs’ managers, we find that the use of NFPM is positively associated with PEU hostility and decentralization. Furthermore, our study shows that these results are mostly driven by CEO’s compensation (in comparison to non-CEOs compensation) and family firms (in comparison to non-family firms). Finally, our analyses reveal that the use of different types of NFPM (customer-oriented, employee-oriented and operations-oriented) is associated with distinct contextual variables. Particularly, customer-oriented NFPM are negatively related to PEU dynamism and positively related to decentralization, while operations-oriented NFPM are positively related to PEU hostility.

Strategies for data analytics projects in business performance forecasting: a field study

Data analytics is applied in various fields, including business performance forecasting, but companies struggle with its implementation. Following a cross-sectional field study approach, we make two contributions. First, we elaborate on the central role played by the head controller in generating trust in analytics solutions and thus, making the project successful. Second, we identify three patterns in the way companies plan, implement, and then use data analytics in the context of business performance forecasting. The two successful patterns are the ones that start with a limited but tangible objective (either in term of information precision, or rapidity of processing) that can be expended in a second time.

Towards a better understanding on mitigating algorithm aversion in forecasting: an experimental study

Forecasts serve as the basis for a wide range of managerial decisions. With the potential of new data sources and new techniques for data analysis, human forecasters are increasingly interacting with algorithms. Although algorithms can show better forecasting performance than humans, forecasters do not always accept these algorithms and instead show aversion to them. Algorithm aversion has become a widely known phenomenon. Drawing on the seminal study of Dietvorst et al. (J Exp Psychol Gen 144(1):114–126, 2015), we extend the evidence on algorithm aversion by introducing three environmental variables from the management accounting literature. We argue that time pressure, “do your best” goals, and forecasters’ data input decision rights on the algorithms input mitigate algorithm aversion. To test our hypotheses, we conducted an experimental study with 1,840 participants overall. We found support for our hypothesis that time pressure mitigates algorithm aversion. We found evidence that the mitigation effect is based on forecasters’ loss of confidence in their own forecast when they are under time pressure. We found no support for our hypothesis on “do your best” goals or forecasters’ data input decision rights.

Big Data’s Disruptive Effect on Job Profiles: Management Accountants’ Case Study

The abundance of new innovative data sources creates opportunities and challenges for all professions and professionals working with information. One of these professionals is the management accountant (MA). Although their tasks have expanded over time and especially recently, MAs have not fully employed all the available internal and external data sources to describe, diagnose, visualize, predict and prescribe possible solutions that enable smart decisions with positive effects on businesses. Thus, the paper investigates the impact of Big Data, including Data Analytics, on MA’s job profile. Through a review of the most recent academic and professional publications, the paper contributes to the debate surrounding the redefinition of the role of MAs in organizations in a novel informational perspective of Abbott’s theory. The results could serve as a research agenda and incentive for further studies, as well as provide MAs with a guide on the topic of the enlargement of their role(s), respectively, the augmentation of their tasks and responsibilities regarding the analysis of Big Data. Furthermore, the research may provide both a rich and flexible framework to help practitioners in their analysis of potential risks, opportunities and challenges when handling Big Data, and a lens for professional accounting associations and bodies by helping them to prioritize the holding and seizing of jurisdictions as an imperative part of safety and security.