Technology-Enabled Management Control Systems and Organizational Performance: The Role of Data Analytics Capability and Strategic Flexibility
DOI:
https://doi.org/10.69980/bma.v12i3.2536Keywords:
Technology-enabled, Organizational performance, Data analytics, Strategic flexibility, Digital transformation, Organizational agilityAbstract
The digitalisation has revolutionized the management control of the modern era, allowing organizations to incorporate real-time information, analytics, digital monitoring and technology-enabled decision-making into management processes. Secondary survey data consisting of 125 complete observations and 38 measurement items were used for a quantitative explanatory design. The study variables for technology-enabled management control systems were operationalized as the digital transformation indicators and data analytics capability as the digital capability measures, the organizational flexibility through organizational agility indicators and the organizational performance through firm performance measures. Descriptive statistics, reliability analysis, Pearson correlation, standardized regression analysis and parallel mediation analysis with 10,000 bootstrap resamples were used. The results indicated that the use of technology-based management control systems was positively related to organization performance and increased the data analytics capability and the strategic flexibility of the organizations to a large extent. Strategic flexibility also had a great positive influence on organizational performance and partially explained the link between technology-based management control systems and performance. Contrary to this, data analytics capability did not show to have any significant independent impact on organizational performance and no significant mediating impact either. The overall model accounted for 61.5% of the variance among organizational performance. The results suggest that the benefits of the technology-based management control systems extend beyond direct managerial effects to reinforcement of the adaptive organizational capabilities.
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