TY - JOUR
T1 - Effect of transformational-leadership style and management control system on managerial performance
AU - Nguyen, Thi Thu
AU - Mia, Lokman
AU - Winata, Lanita
AU - Chong, Vincent K.
PY - 2017/1/1
Y1 - 2017/1/1
N2 - Our study adds perspective on research into choices in the design of management control systems by examining: (1) how transformational-leadership style influences the choice of the design of a comprehensive performance-measurement system (PMS) and reward system; (2) how subordinate managers’ reliance on broad-scope accounting (BSA) information facilitates their managerial decision-making processes and managerial performance. Our results suggest that transformational-leadership style has a significant positive and direct effect on managerial performance. We find that it has a significant positive and direct effect on the use of BSA information and comprehensive PMS, but has no significant effect on reward systems. We also find that transformational-leadership style has a partial indirect effect on managerial performance via three mediators, namely, comprehensive PMS, reward systems, and BSA information. Our findings shed light on how such mediators intervene in the relationship between transformational-leadership style and managerial performance.
AB - Our study adds perspective on research into choices in the design of management control systems by examining: (1) how transformational-leadership style influences the choice of the design of a comprehensive performance-measurement system (PMS) and reward system; (2) how subordinate managers’ reliance on broad-scope accounting (BSA) information facilitates their managerial decision-making processes and managerial performance. Our results suggest that transformational-leadership style has a significant positive and direct effect on managerial performance. We find that it has a significant positive and direct effect on the use of BSA information and comprehensive PMS, but has no significant effect on reward systems. We also find that transformational-leadership style has a partial indirect effect on managerial performance via three mediators, namely, comprehensive PMS, reward systems, and BSA information. Our findings shed light on how such mediators intervene in the relationship between transformational-leadership style and managerial performance.
KW - Broad-scope information
KW - Performance measurement system
KW - Reward system
KW - Transformational-leadership style
UR - http://www.scopus.com/inward/record.url?scp=84994633932&partnerID=8YFLogxK
U2 - 10.1016/j.jbusres.2016.08.018
DO - 10.1016/j.jbusres.2016.08.018
M3 - Article
VL - 70
SP - 202
EP - 213
JO - Journal of Business Research
JF - Journal of Business Research
SN - 0148-2963
ER -