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" Management Controls System, Firm Contingencies and Performance of Small and Medium Manufacturing Enterprises in Lagos, Nigeria "
Mustapha, Abdulrasaq
Sanni, Mubaraq
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Latin Dissertation
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| Language of Document
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English
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| Record Number
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1104494
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| Doc. No
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TLpq2235266672
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| Main Entry
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Mustapha, Abdulrasaq
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Sanni, Mubaraq
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| Title & Author
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Management Controls System, Firm Contingencies and Performance of Small and Medium Manufacturing Enterprises in Lagos, Nigeria\ Mustapha, AbdulrasaqSanni, Mubaraq
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| College
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Kwara State University (Nigeria)
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| Date
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2019
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| student score
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2019
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| Degree
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Ph.D.
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| Page No
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237
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| Abstract
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Management control constitutes one of the critical functions of management in organization. However, little or no attentions have been given to design and use of this very important function of management. Much of the mechanisms or techniques acknowledged to be in use to carry out management control functions are limited to accounting-based control techniques which have been criticized to have behavioral dysfunctional consequences such as lack of direction, efforts aversion and other self-interested behaviours. To prevent or avert these dysfunctional behaviours, appropriate design that takes into account relevant contingency factors is very essentials. In view of the foregoing, the study investigated how Small and Medium Manufacturing Enterprises (SMMEs) engage in the practice of Management Controls System (MCS) in context of relevant contingency factors and its effect on performance. The study obtained quantitative data through self-administered questionnaire from randomly selected 262 managers as well as qualitative data, through face-to-face interview, from purposively selected 13managers of small and Medium Manufacturing Enterprises in Lagos State respectively. The obtained quantitative data were subjected to multiple regression analysis (Ordinary Least Squares) and Partial Least Squares (PLS-SEM) while the qualitative data were narratively analysed. The result of quantitative analysis was enhanced by qualitative evidence. The findings of the study revealed that both institutional contingency (association and regulatory) and other firm’s factors: Perceived Environmental Uncertainty (PEU) and Task Uncertainty (TU)) influence the choice of accounting and non-accounting control systems. In addition, variation in performance of Small and Medium Manufacturing Enterprises (SMMEs) was attributed to four management control mechanisms. In relation to institutional contingency factors, association pressures significantly influence usage level of accounting control system (t-vlue = 4.000 P-value < 0.01) while both association and regulatory pressures significantly drive the usage level of non-accounting control system (t-vlue = 3.867, P-value < 0.01) and (t-value = 2.896 P < 0.01) respectively. For firm contingency factors, both PEU and TU significantly explained variation in the usage level of both accounting control system [PEU :(t-value = 4.360, P-value < 0.01)and [TU:(t-value = 3.223, P-value < 0.01)] and non-accounting control system [PEU :(t-value = 6.583, P < 0.01) and TU :(t-value = 6.993 P < 0.01)].On the variation in performance of the focused firms, two accounting control mechanisms: compensation (t-value = 2.573, P < 0.05) and Planning (t-value = 4.882, P-value < 0.01) significantly impact on performance while Policies and procedures(t-value = 3.125, P < 0.01) and socio-cultural control(t-value = 5.732, P < 0.01) also to a large extent, drive the performance of SMMEs. In addition to the aforementioned, findings also revealed existence of lack of fit between accounting control system and firms’ contingency factors. The thesis concluded that managers of Small and Medium Manufacturing Enterprises employ some accounting and non-accounting control mechanisms to achieve goal congruence among their subordinates and to a greater extent, the practices impact positively on performance. Therefore, the study recommended that SMMEs should integrate both accounting and non-accounting control mechanisms into the design of their control system architecture, with focused attention on relevant contingency factors to achieve goal congruence.
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Accounting
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African Studies
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Finance
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