A CONCEPTUAL FRAMEWORK FOR EXPLORING MANAGEMENT CONTROL STYLE WITHIN PSYCHOLOGICAL EMPOWERMENT

PETRUS MAASALO, HENRI TEITTINEN

Abstract:

This article explores the effect of management control style in terms of structural empowerment and visionary leadership on psychological empowerment. Despite the inseparable nature of leadership and management control systems, the field of accounting has largely ignored the study of leadership. We address this gap by drawing on the literature on management control systems and leadership. We propose a framework for analyzing how management control style in terms of structural empowerment and visionary leadership affects psychological empowerment. We draw on theories of leadership, management control systems, psychological empowerment, and competitive strategy. We argue that leadership style is embedded in management control systems and that the degree of visionary leadership and degree of control are key dimensions determining the effect of management control style on psychological empowerment and alignment with strategy. This paper proposes a novel perspective for approaching management control systems from the perspective of their effect on psychological empowerment and alignment with strategy. This paper proposes a framework for analyzing the effect of management control style on psychological empowerment. Such analysis makes it possible to assess the effect of management control style on psychological empowerment and thus on organizational performance, as well as alignment with strategy.

Keywords:
management control style, management control system, leadership, psychological empowerment, strategy

DOI: 10.20472/BM.2023.11.1.001

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APA citation:
PETRUS MAASALO, HENRI TEITTINEN (2023). A conceptual framework for exploring management control style within psychological empowerment. International Journal of Business and Management, Vol. XI(1), pp. 1-18. , DOI: 10.20472/BM.2023.11.1.001

Copyright © 2023, Petrus Maasalo et al, petrusm@student.uef.fi