Frontiers of Japanese Management Control Systems

Inhaltsverzeichnis

1. Frontmatter

2. Chapter 1. Introduction

   Eri Yokota

   Abstract

   In the trend of diversification of management control research, management control in Japan has been conducted from various perspectives. This book begins with an overview of the trends in Japanese research on management control processes. Next, it clarifies, quantitatively and qualitatively, the budget, performance evaluation, and investment decision making that builds the management control system in Japanese firms, and attempts to gain a deeper understanding of management control in Japan.

3. Chapter 2. Contemporary Management Control Research in Japan

   Eri Yokota, Sakichi Otomasa, Junya Sakaguchi, Takaharu Kawai, Yasushi Onishi, Takeyoshi Senoo, Yudai Onitsuka

   Abstract

   The purpose of this study is to present the current status of management control research in Japan through a literature analysis. To achieve the purpose of this study, we conducted a literature analysis of studies published in seven major Japanese accounting journals between 2011 and 2013. Specifically, the bibliographic study was conducted in relation to the research objective (Japanese-specific practices, regions, industries, organizational scope, and management accounting tools) and the approach (research method and source disciplines) for management control research in Japan. Finally, based on the results of the bibliographic study, we discuss the characteristics of recent management control research in Japan and provide useful insights into the current state of management control research in Japan.

4. Chapter 3. A Survey of Management Control Systems and Managerial Behavior in Japanese Companies

   Eri Yokota, Asako Takada, Takeyoshi Senoo, Shinya Kaneko

   Abstract

   Theoretical research on management control systems (MCS) have developed in recent years. Based on Yokota and Senoo (2011), we conduct a mail-based questionnaire survey of 1674 companies listed on the First Section of the Tokyo Stock Exchange from February through March 2012 (263 companies responded (response rate of 15.7)) to clarify the status of and changes in MCS in Japanese companies after the Great East Japan Earthquake that occurred in March 2011. This chapter reports the simple tabulation results of the survey about budgeting, business environments, organizational characteristics, and managerial leadership and behaviors.

5. Chapter 4. A Survey of Performance Management Systems in Japanese Companies

   Eri Yokota, Takeyoshi Senoo, Shingo Takahashi, Yusuke Goto

   Abstract

   In recent years, new theoretical frameworks for performance management systems have been proposed, such as the balanced scorecard (BSC) and beyond budgeting. In November 2009, we conducted a mail-based questionnaire survey of 1700 companies listed on the First Section of the Tokyo Stock Exchange (including 143 major operating companies) to clarify the details of performance management systems in Japanese companies and the factors expected to affect these systems (68 companies responded (response rate of 4.0). This chapter reports the main simple tabulation results of the survey about the organizational structure of major business units and the importance of performance measures, the process for setting performance targets and levels, how to use performance management systems and their characteristics, the performance evaluation process at the end of the year, and the factors that are expected to have an impact.

6. Chapter 5. The Influence of Parent-Performance Management Systems on Subsidiaries’ Decision-Making: Process of Parent-Performance Management Systems Use and Subsidiaries’ External Embeddedness

   Yudai Onitsuka

   Abstract

   This study investigates the influence of parent-PMS on subsidiaries’ decision-making, and the interaction effects of the parent-PMS use and subsidiaries’ external embeddedness. In particular, this study analyzes the moderating effects of the subsidiaries’ external embeddedness on the cause-effect relation between parent-PMS use and the influence of parent-PMS on subsidiaries’ decision-making. The analyses using survey data from 199 top-managements in Japanese subsidiaries indicate that subsidiaries’ embeddedness in customers negatively moderates the influence of the interactive use of PMS by headquarters although subsidiaries’ embeddedness in suppliers positively moderates the influence of the interactive use of PMS by headquarters.

7. Chapter 6. Empirical Study on Capital Budgeting as a Management Process: Evidence from Japanese Manufacturing Firms

   Nobumasa Shimizu, Yutaka Kato, Junya Sakaguchi, Takaharu Kawai, Akiko Tamura

   Abstract

   Capital budgeting is critical for firms in terms of regulating the activity of the organization and retaining a large amount of capital for the long term. In this research, we aim at the management process as a new way of analyzing capital budgeting in management accounting. Using a mail survey of Japanese manufacturing firms, we extract ex-ante evaluation, ex-post evaluation, and careful deliberation as core components of the capital budgeting management process. Additionally, our results demonstrate that ex-ante evaluation and ex-post evaluation foster capital budgeting management efficiency, whereas careful deliberation inhibits its efficiency.

8. Chapter 7. Exploring the Use of Balanced Scorecard in Functional Departments: A Case Study of Kirin Brewery Company, Limited

   Takeyoshi Senoo

   Abstract

   This case study of Kirin Brewery Company, Limited was conducted with the aim of developing a hypothesis about the importance of using a balanced scorecard (BSC) to align functional departments with business strategies. As a result, I present multiple hypotheses about cascading a BSC between strategic business units and functional departments, as well as between higher and lower levels of the organizational hierarchy within functional departments. We also address problems of coordination between functional departments using a BSC.

9. Chapter 8. Discussing the Balanced Scorecard as an Interactive Control System: A Case Study of a Food Company

   Eri Yokota, Takeyoshi Senoo

   Abstract

   Recently, many studies have suggested that the Balanced Scorecard (BSC) should be used as an interactive control system (ICS). To examine essential properties of the BSC as an ICS, in this chapter we conduct a case study of a food company which intensively used the BSC. Consequently, we find that five properties of ICS which Bisbe et al. (2007) have identified, are not always sufficient to encourage innovation as an ICS.

10. Chapter 9. A Management Control Package for Associating Customer Satisfaction with Financial Performance: A Case Study on Customer Satisfaction Management at Hoshino Resorts

    Sakichi Otomasa, Takahito Kondo

    Abstract

    Prior studies have reported inconsistent findings regarding the effects of customer satisfaction on financial outcomes. To figure out what beliefs practitioners have of the interrelationship between them and explore what managerial practices are implemented for pursuing better performance based on such beliefs, this paper provides a case study on management systems for taking control of customer satisfaction at a leading company in the Japanese hotel industry, Hoshino Resorts Inc. While the company believes that customer satisfaction should lead to operating profits, it is still in the process of finding the causal relationship between customer satisfaction and financial outcomes. This study illustrates that even though the causal relationship is not perfectly specified, the company continues to make a lot of effort to develop management control systems as a package for simultaneous improvements in customer satisfaction and financial outcomes.

11. Chapter 10. Institutional Isomorphism of Corporate Social Responsibility Performance Measurement: A Case of a Japanese Homebuilding Firm

    Yasushi Onishi, Eri Yokota

    Abstract

    Measuring corporate social responsibility (CSR) performance is crucial to promote sustainable corporate management. However, the practice of CSR performance measurement faces institutional uncertainty because the concept of sustainability is ambiguous and stakeholders have diverse opinions. In this paper, we explore the case of the CSR performance measurement practice in a Japanese homebuilding firm from the perspective of the new institutionalism to show the institutional isomorphism of corporate CSR performance measurement. Our results show that the isomorphism of the practices on assessing materiality of CSR issues and defining CSR performance indicators.