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Strategy and management control systems: A study of the design and use of management control systems following takeover
Author(s) -
Nilsson Fredrik
Publication year - 2002
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/1467-629x.00003
Subject(s) - management control system , control (management) , business , process management , strategic management , industrial organization , operations management , risk analysis (engineering) , marketing , economics , management
This paper describes and analyses the approach taken by four well‐known Swedish companies to management control following takeover. The findings suggest two factors which can explain how the management control systems were designed and used after an acquisition: the corporate strategy of the acquirer and the business strategy of the acquired company. The case studies show how these forces could impose mutually inconsistent requirements on the management control system of the acquired firm, and also how these inconsistencies were resolved.