Background – Over the years, management control has become an agenda in the research field, and new frameworks have been developed to study organizational control and measure company performance. Management Control Systems (MCS) development has gained attention with the trend of young, technology-driven companies becoming substantial contributors to the economy. Because of the sudden growth of communication channels, employee numbers, and unguided processes around products and services, informal control becomes inefficient, causing communication problems and eventually limiting company growth. Research indicates that adaptation of a well-functioning MCS overcomes these problems. Purpose – The purpose of this study is to connect observations of Venture Capital effects on MCS to the existing SME and MCS literature. Method – Empirical data was collected by interviewing participants within four European SMEs that operate in different sectors. Semi-structured interviews were set up with the guidance of the theoretical framework. Thematic analysis was used to analyze the interview recordings. Findings – The study finds that case study companies commonly use Objectives and Key Results (OKRs), a practical implementation framework for Balance Scorecards (BSC). The short-sighted characteristics of BSC are in line with the nature of the SME environment, reactively responding to short-term threats and the financial-measure-focused VC interest. Agency Theory characteristics can label VC and SME relations. The research encourages addressing conflicting interests by redirecting focus to company growth. Since the adoption of well-functioning MCS assists company growth, this research suggests motivating and assisting MCS development at SMEs.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:su-207460 |
| Date | January 2022 |
| Creators | Thormar, Gauti, Renáta Gabriella, Sándor |
| Publisher | Stockholms universitet, Företagsekonomiska institutionen |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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