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Management control systems design of Malaysian Research and Development Units

The nucleus for any high income economy is its successful innovation agenda. This gives rise to the importance of wellmanaged research and development (R&D) activities for the economy. To address this issue, the study aims to understand the relationships between task uncertainty and Management...

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Main Authors: Khairul Naziya Kasim,, Rozita Amiruddin,, Sofiah Md. Auzair,
Format: Article
Language:English
Published: FEP 2012
Online Access:http://journalarticle.ukm.my/5691/1/vol3ch5.pdf
http://journalarticle.ukm.my/5691/
http://www.ukm.my/ajag/issues.html
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spelling my-ukm.journal.56912016-12-14T06:39:12Z http://journalarticle.ukm.my/5691/ Management control systems design of Malaysian Research and Development Units Khairul Naziya Kasim, Rozita Amiruddin, Sofiah Md. Auzair, The nucleus for any high income economy is its successful innovation agenda. This gives rise to the importance of wellmanaged research and development (R&D) activities for the economy. To address this issue, the study aims to understand the relationships between task uncertainty and Management Control Systems (MCS) in R&D units of Malaysian manufacturing firms. Specifically, the relationship between two dimensions of task uncertainty, task variability and task analyzability; and four characteristic of MCS are investigated. The MCS characteristics were conceptualized using the framework that includes the MCS degree of formalization; degree of tightness; degree of influence and participation involved; and the scope of information used. This study suggests fit between task uncertainty and MCS will enhance R&D performance. Survey questionnaires were administered to managers of R&D units in 61 manufacturing companies operating in Malaysia. Using moderated regression analysis, the results showed that high unit performance was reported when there was interaction (1) between task non-analyzability and controls formalization, (2) between task variability and influence and participation of subordinates in control process, and (3) between task variability and scope of information. These findings suggest that the two dimensions of task uncertainty affect different MCS characteristics in a different manner to produce high R&D unit performance. This study provides important implication for management as it involves a greater understanding of the governance structure of the R&D unit. The finding suggests that the design of the MCS needs to take into account information gaps among employees, which contribute to uncertainty when performing their work tasks. FEP 2012 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/5691/1/vol3ch5.pdf Khairul Naziya Kasim, and Rozita Amiruddin, and Sofiah Md. Auzair, (2012) Management control systems design of Malaysian Research and Development Units. Asian Journal of Accounting and Governance, 3 . pp. 49-60. ISSN 2180-3838 http://www.ukm.my/ajag/issues.html
institution Universiti Kebangsaan Malaysia
building Perpustakaan Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description The nucleus for any high income economy is its successful innovation agenda. This gives rise to the importance of wellmanaged research and development (R&D) activities for the economy. To address this issue, the study aims to understand the relationships between task uncertainty and Management Control Systems (MCS) in R&D units of Malaysian manufacturing firms. Specifically, the relationship between two dimensions of task uncertainty, task variability and task analyzability; and four characteristic of MCS are investigated. The MCS characteristics were conceptualized using the framework that includes the MCS degree of formalization; degree of tightness; degree of influence and participation involved; and the scope of information used. This study suggests fit between task uncertainty and MCS will enhance R&D performance. Survey questionnaires were administered to managers of R&D units in 61 manufacturing companies operating in Malaysia. Using moderated regression analysis, the results showed that high unit performance was reported when there was interaction (1) between task non-analyzability and controls formalization, (2) between task variability and influence and participation of subordinates in control process, and (3) between task variability and scope of information. These findings suggest that the two dimensions of task uncertainty affect different MCS characteristics in a different manner to produce high R&D unit performance. This study provides important implication for management as it involves a greater understanding of the governance structure of the R&D unit. The finding suggests that the design of the MCS needs to take into account information gaps among employees, which contribute to uncertainty when performing their work tasks.
format Article
author Khairul Naziya Kasim,
Rozita Amiruddin,
Sofiah Md. Auzair,
spellingShingle Khairul Naziya Kasim,
Rozita Amiruddin,
Sofiah Md. Auzair,
Management control systems design of Malaysian Research and Development Units
author_facet Khairul Naziya Kasim,
Rozita Amiruddin,
Sofiah Md. Auzair,
author_sort Khairul Naziya Kasim,
title Management control systems design of Malaysian Research and Development Units
title_short Management control systems design of Malaysian Research and Development Units
title_full Management control systems design of Malaysian Research and Development Units
title_fullStr Management control systems design of Malaysian Research and Development Units
title_full_unstemmed Management control systems design of Malaysian Research and Development Units
title_sort management control systems design of malaysian research and development units
publisher FEP
publishDate 2012
url http://journalarticle.ukm.my/5691/1/vol3ch5.pdf
http://journalarticle.ukm.my/5691/
http://www.ukm.my/ajag/issues.html
_version_ 1643736504278712320
score 13.211869

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