The adoption of Management Accounting and Control Systems (MACS) is instrumental for achieving strategic goals in transitional economies, where MACS serve as channels for knowledge transfer and standard practice sharing. This thesis examines the impact of environmental and organisational contexts on MACS and strategic changes in Mongolia, a transitional economy. Prior research on MACS in a such setting is limited, highlighting the need for this study. Building on the contingency theory and Levers of Control (LOC) framework, the study addresses a gap in understanding MACS’ role in facilitating strategic change to respond to crisis, technology, non-market strategy, hybrid structure, supply chain disruption and networking contexts. It employs a positivist research philosophy and a cross-sectional survey method targeting organisations with over 50 employees in Mongolia. A sample size of 322 responses was analysed using Structural Equation Modelling to examine the relationships between contextual factors, MACS and strategic change. Findings indicate that organisations are highly dependent on MACS during crises with an emphasis on building resilience, risk mitigation and stakeholder interactions. The non-market strategy and networking influence strategic change, while technology and hybrid structure have less impact. Furthermore, MACS play a mediating role between contextual factors and strategic change, demonstrating their importance in business survival and long-term success. The study contributes to MACS literature by extending the LOC framework to a transitional economy and highlighting the importance of non-market strategy and networking. It also offers practical insights for organisations in similar settings, emphasising the need for robust control systems to overcome increased uncertain operating business conditions. Future research could explore longitudinal impacts, broader organisational context and the role of MACS in addressing sustainability practices and cybersecurity risks. In summary, this thesis underscores the critical role of MACS in supporting strategic change in Mongolia, providing a foundation for further studies in transitional economies.
- Management Accounting and Control Systems
- Mongolia
- Contingency Theory
- Levers of Control Framework
MANAGEMENT ACCOUNTING AND CONTROL SYSTEMS IN A TRANSITIONAL ECONOMY : A CONTINGENCY PERSPECTIVE
Badam, S. (Author). 23 Jul 2024
Student thesis: Doctoral Thesis