Value Logics and Management Control Systems


Speaker:Prof David Otley
Date: Wednesday 13 February 2013
Time: 14.00 - 15.30
Location: Bateman Lecture Theatre

Further details

This paper explores the relationship between strategy and management control systems through the lens of the value logic typology (Stabell and Fjeldstad, 1998). The relationship between strategy and management control systems has long been an area of interest to researchers typically using strategic to conceptualize strategy. However, it has been suggested that the typologies most often utilized are dated and do not account for modern day business models. The value logic typology builds on the Value Chain model (Porter 1985) to present an alternative strategic typology that incorporates traditional firms (Value Chains) as well as knowledge based firms (Value Shops) and network firms (Value Networks). We utilize the value logic typology to investigate differences in management control systems under different value logics. Evidence from case studies and a questionnaire suggest that significant differences exist in the management control systems of firms using different value logics. We argue that the value logic may be an important factor in explaining differences in management control systems’ use.