Impact of corporate strategy on the digitalization of management control: evidence from Moroccan companies
Keywords:
Digitalization, Management control, Corporate Strategy, Moroccan Companies
Abstract
For several years, digitalization has emerged as a critical strategic issue for companies, influencing all of their functions, including Human Resources Management (HRM), logistics, finance, and others. It has been the subject of numerous research studies, particularly in developed countries. However, this type of research remains largely underexplored in developing countries. In this context, this paper, based on a survey conducted among forty-two companies in Morocco, aims to address two key questions. First, how can the degree of digitalization of management control in these companies be assessed? Second, does corporate strategy have a significant impact on this digitalization? The primary findings of the study suggest that the level of digitalization is "moderate." Furthermore, we demonstrate that corporate strategy significantly influences the digitalization of management control; specifically, prospector companies are more likely to adopt digital management control systems than defender companies. This research makes important contributions both theoretically and managerially. Theoretically, it provides new insights into the digitalization of management control. From a managerial perspective, it offers valuable guidance for decision-makers to better align the digitalization of management control systems with the broader strategic objectives of their organizations.
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References
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26. Elhamma, A., & Moalla, M. (2015). Impact of uncertainty and decentralization on activity-based costing use. International Journal of Accounting and Economics Studies, 3(2), 148–155.
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31. Langfield-Smith, K. (1997). Management control systems and strategy: A critical review. Accounting, Organizations and Society, 22(2), 207–232.
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33. Mintzberg, H. (1979). The structuring of organizations. Prentice Hall.
34. Otley, D. T. (1980). The contingency theory of management accounting: Achievement and prognosis. Accounting, Organizations and Society, 5(4), 194–208.
35. Pan, G., & Seow, P. (2016). Preparing accounting graduates for the digital revolution: A critical review of information technology competencies and skills development. Journal of Education for Business, 91(3), 166–175.
36. Pock, T. (2007). Contingency-based design of management control systems (Doctoral thesis). University of St. Gallen Graduate School of Business Administration, Economics, Law, and Social Sciences (HSG).
37. Ross, J. W., Beath, C. M., & Sebastian, I. M. (2017). Digitized ≠ digital. MIT CISR Research Briefings, 18(10), 1–3.
38. Simons, R. (1987). Accounting control systems and business strategy: An empirical analysis. Accounting, Organizations and Society, 12(4), 357–374.
39. Trahand, D. (1982). Le contrôle de gestion : Quel style adopter? Revue Française de Gestion, septembre-octobre, 45–69.
40. Vasarhelyi, M. A., Kogan, A., & Tuttle, B. M. (2015). Big data in accounting: An overview. Accounting Horizons, 29(2), 381–396.
41. Warren Jr., J. D., Moffitt, K. C., & Byrnes, P. (2015). How big data will change accounting. Accounting Horizons, 29(2), 397–407.
42. We Are Social & Hootsuite. (2022, 2023). Reports. https://wearesocial.com/
43. Zhu, N., & Xubei, L. (2023). Digitalization and firm performance in the Middle East and North Africa: Case studies of Jordan, Morocco, and Egypt. Economic Research Forum, Working Paper No. 1637, April 2023.
2. Anthony, R. N. (1965). Planning and control systems: A framework for analysis. Division of Research, Harvard University.
3. Anthony, R. N. (1988). The management control function. Harvard Business School Press.
4. Appelbaum, D., Kogan, A., Vasarhelyi, M., & Yan, Z. (2015). Impact of business analytics and enterprise systems on managerial accounting. International Journal of Accounting Information Systems, 25, 29–44.
5. Benga, B., & Elhamma, A. (2024). Navigating the digital frontier: A literature review on business digitalization. European Scientific Journal, ESJ, 20(10), 107–125. https://doi.org/10.19044/esj.2024.v20n10p107
6. Bennani, S., & Elhamma, A. (2015). La comptabilité en finance islamique selon les normes AAOIFI. Éditions Universitaires Européennes.
7. Bos, C. (2018). La transformation digitale, vers un management stratégique augmenté? Céline Bos, Ea Conseil & Formation. DIF 2018, Lyon, France.
8. Bouquin, H. (1999). Contrôle et stratégie. In B. Collasse (Coord.), Encyclopédie de comptabilité, contrôle, audit (pp. [page numbers]). Economica.
9. Bouquin, H. (2001). Le contrôle de gestion (5th ed.). PUF, Collection Gestion.
10. Cavelius, F., Endenich, C., & Zicari, A. (2018). L'impact de la digitalisation sur le rôle du contrôleur de gestion. Transitions numériques et informations comptables. May, Nantes, France. https://hal.archives-ouvertes.fr/ffhal-01907810f
11. De La Villarmois, O., & Tondeur, H. (2005). Contrôle et stratégie : Éléments empiriques. Cahier de recherche, CLAREE, UPRESA CNRS 8020, mai.
12. Dent, J. F. (1990). Strategy, organization, and control: Some possibilities for accounting research. Accounting, Organizations and Society, 15(1/2), [page range].
13. Desreumaux, A. (1998). Théorie des organisations. EMS.
14. Dorn, D. (2017). La montée en puissance des machines : Comment l’ordinateur a changé le travail. Revue française des affaires sociales, 1, 35–63.
15. Elhamma, A. (2011). Impact de la stratégie sur le contenu des tableaux de bord : Cas des entreprises au Maroc. Revue Congolaise de Gestion, 14, 57–77.
16. Elhamma, A. (2012). The activity based costing in Morocco: Adoption and diffusion. Arabian Journal of Business and Management Review, 1(6), 33–45.
17. Elhamma, A. (2013). Influence de la taille, de la stratégie et de la structure organisationnelle sur l’adoption de la comptabilité par activité au Maroc. Revue Gestion et Organisation, 5(1), 27–32.
18. Elhamma, A. (2013). The impact of business strategy on budgetary evaluation in Moroccan firms: An empirical study. International Journal of Accounting Research, 1(2), 1–7.
19. Elhamma, A. (2023). Digitalisation et incertitude environnementale : Cas du contrôle de gestion des entreprises marocaines. Revue Économie, Gestion et Société, 1(39). https://doi.org/10.48382/IMIST.PRSM/regs-v1i39.42390
20. Elhamma, A. (2023). Impact of mandatory IFRS adoption on foreign direct investment: The moderating role of conflict of interest regulation. Journal of Financial Reporting and Accounting, ahead-of-print. https://doi.org/10.1108/JFRA-04-2022-0145
21. Elhamma, A. (2023). Numérisation du contrôle de gestion en fonction du secteur d’activité : Résultats d’une étude empirique. Moroccan Journal of Entrepreneurship, Innovation and Management, 8(1&2), 59–68. https://doi.org/10.48396/IMIST.PRSM/mjeim-v8i1%20&%202.43254
22. Elhamma, A. (2024). Determinants of national IFRS adoption: Evidence from the Middle East and North Africa region. International Journal of Accounting, Auditing and Performance Evaluation, 20(1-2), 69–90. https://doi.org/10.1504/IJAAPE.2024.135535
23. Elhamma, A. (2024). Participant observation as a qualitative research method in management sciences: Interests, conditions, and limitations. In B. Bentalha & L. Alla (Eds.), Applying qualitative research methods to management science (pp. 75–91). IGI Global. https://doi.org/10.4018/979-8-3693-5543-5.ch004
24. Elhamma, A., & El-Moumane, R. (2023). Impact de la taille sur la digitalisation du contrôle de gestion des entreprises marocaines : Résultats d’une enquête. Alternatives Managériales Économiques, 5(3), 182–199. https://doi.org/10.48374/IMIST.PRSM/ame-v5i3.41916
25. Elhamma, A., & El-Moumane, R. (2023). Impact of firm size on digitalization of management control: Evidence from Morocco. International Journal of Management, Accounting & Economics, 10(6), 412–424. https://doi.org/10.5281/zenodo.8216014
26. Elhamma, A., & Moalla, M. (2015). Impact of uncertainty and decentralization on activity-based costing use. International Journal of Accounting and Economics Studies, 3(2), 148–155.
27. Elhamma, A., & Zhang, Y. (2013). The relationship between activity-based costing, business strategy, and performance in Moroccan enterprises. Journal of Accounting and Management Information Systems, 12(1), 22–38.
28. Ezzamel, M., & Hart, H. (1987). Advanced management accounting: An organisational emphasis. Cassell.
29. Fähndrich, J. (2023). A literature review on the impact of digitalisation on management control. Journal of Management Control, 34, 9–65. https://doi.org/10.1007/s00187-022-00349-4
30. Fisher, J. (1995). Contingency-based research on management control systems: Categorization by levels of complexity. Journal of Accounting Literature, 14.
31. Langfield-Smith, K. (1997). Management control systems and strategy: A critical review. Accounting, Organizations and Society, 22(2), 207–232.
32. Mia, M. A., Hossain, M. I., & Sangwan, S. (2024). Determinants of digitalization: Evidence from Asia and the Pacific countries. Digital Transformation and Society, 3(4), 340–358. https://doi.org/10.1108/DTS-10-2023-0097
33. Mintzberg, H. (1979). The structuring of organizations. Prentice Hall.
34. Otley, D. T. (1980). The contingency theory of management accounting: Achievement and prognosis. Accounting, Organizations and Society, 5(4), 194–208.
35. Pan, G., & Seow, P. (2016). Preparing accounting graduates for the digital revolution: A critical review of information technology competencies and skills development. Journal of Education for Business, 91(3), 166–175.
36. Pock, T. (2007). Contingency-based design of management control systems (Doctoral thesis). University of St. Gallen Graduate School of Business Administration, Economics, Law, and Social Sciences (HSG).
37. Ross, J. W., Beath, C. M., & Sebastian, I. M. (2017). Digitized ≠ digital. MIT CISR Research Briefings, 18(10), 1–3.
38. Simons, R. (1987). Accounting control systems and business strategy: An empirical analysis. Accounting, Organizations and Society, 12(4), 357–374.
39. Trahand, D. (1982). Le contrôle de gestion : Quel style adopter? Revue Française de Gestion, septembre-octobre, 45–69.
40. Vasarhelyi, M. A., Kogan, A., & Tuttle, B. M. (2015). Big data in accounting: An overview. Accounting Horizons, 29(2), 381–396.
41. Warren Jr., J. D., Moffitt, K. C., & Byrnes, P. (2015). How big data will change accounting. Accounting Horizons, 29(2), 397–407.
42. We Are Social & Hootsuite. (2022, 2023). Reports. https://wearesocial.com/
43. Zhu, N., & Xubei, L. (2023). Digitalization and firm performance in the Middle East and North Africa: Case studies of Jordan, Morocco, and Egypt. Economic Research Forum, Working Paper No. 1637, April 2023.
Published
2024-11-30
How to Cite
El-Moumane, R., & Elhamma, A. (2024). Impact of corporate strategy on the digitalization of management control: evidence from Moroccan companies. European Scientific Journal, ESJ, 20(31), 81. https://doi.org/10.19044/esj.2024.v20n31p81
Section
ESJ Social Sciences
Copyright (c) 2024 Rajae El-Moumane, Azzouz Elhamma
This work is licensed under a Creative Commons Attribution 4.0 International License.
