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Revenue growth in not‐for‐profit organisations: The effects of interactive and diagnostic controls and organisational culture
Author(s) -
Jiao Lu,
Harrison Graeme,
Chen Jinhua
Publication year - 2023
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/acfi.12960
Subject(s) - revenue , business , organizational culture , management control system , profit (economics) , marketing , industrial organization , control (management) , survey data collection , knowledge management , microeconomics , economics , accounting , management , computer science , statistics , mathematics
Using survey and archival data for 180 not‐for‐profit aged care organisations, we find that interactive use of performance measurement systems positively affects the organisations’ revenue growth, while the diagnostic use negatively affects revenue growth. We also find that organisational culture, specifically attention to detail, innovation and respect for people, moderates these effects. Our findings have implications for the literature in terms of understanding the combinatorial effects of formal management control and culture on organisational performance. The findings also have practical implications for designing performance measurement systems and developing organisational cultures, to create an internal environment effective in enabling revenue growth.