| 2014 - STRATEGY AND MANAGEMENT CONTROL IN EMBRACING MARKET-POLITICAL PARADOX: THE CASE DURING INSTITUTIONAL TRANSITIONS IN EMERGING ECONOMIES |
| Authors : Pingli Li - UNIVERSITY OF SOUTHAMPTON , Guliang Tang - UNIVERSITY OF INTERNATIONAL BUSINESS AND ECONOMICS, Lu Dai - RENMIN UNIVERSITY OF CHINA |
| Thursday, June 22, 2017 - Slot 5 (14:00 - 15:30) |
| Business School Cathedral Wing - Room CW 310 |
| |
| This study focuses on the management of market-political paradox within the context of institutional transition in emerging economies and how management control systems (MCSs) can be used to engage and communicate such a strategy. A case study is conducted in a Chines state-owned enterprise where Economic-Value-Added is introduced to promote shareholder’s value maximization while firm size is still important to meet the political demand. A spatial focus strategy was identified which requires subsidiaries to engage both forces but with different focuses. It provides critical insights on how diagnostic, interactive, beliefs, and boundary control have been employed to visualize and engage the paradoxical strategy in the organization, where the interwoven of ‘either/or’ dilemma and ‘both/and’ paradox brings ambivalence and uncertainty into decision-making. The study extends our understanding of managing organizational paradox and the relevance of MCSs in it, which enriches our knowledge with insights on indigenous Chinese management practices. |
| Keywords : Paradox, China, management control |
