This book provides a multilateral view of Japanese management control systems (MCS), presents the frameworks of MCS theory, and integrates those systems based on quantitative and qualitative research. Readers will learn how Japanese MCS were investigated by researchers and why they chose the existing frameworks. Not only are the topics clarified with regard to Japanese MCS; empirical evidence from Japan is also provided. At the outset, the frameworks of MCS used by Japanese researchers are explained, and the reasons they choose those frameworks are investigated. Following that exploration, readers are shown a close examination of MCS, which are thought to be difficult to understand in Japan. In Japanese companies, however, these systems are generally used, so in other words Japanese companies use MCS without considering its frameworks. It is a baffling phenomenon, thus a fine topic of research. After a comprehensive review of the literature, the current status of Japanese MCS is presented by using both quantitative and qualitative research. By the end of the book, readers will have a firm grasp of how Japanese firms use MCS and what MCS means for Japanese companies.
Author(s): Eri Yokota
Series: Translational Systems Sciences, 32
Publisher: Springer
Year: 2023
Language: English
Pages: 169
Preface
Contents
About the Editor
Chapter 1: Introduction
1.1 Diversity of Management Control Research
1.2 Issues in This Volume
1.3 Structure of This Book
References
Chapter 2: Contemporary Management Control Research in Japan
2.1 Introduction
2.2 Literature Analysis Method
2.3 Bibliographic Study of Management Control Research in Japan
2.3.1 Research Objectives
2.3.1.1 Descriptions to Japanese-Specific Practice
2.3.1.2 Region
2.3.1.3 Research Site (Industry)
2.3.1.4 Organizational Scope
2.3.1.5 Management Accounting Tools
2.3.1.6 Cross-Tabulation with Descriptions to Japanese-Specific Practice
2.3.2 Approach
2.3.2.1 Research Methods
2.3.2.2 Source Discipline
2.3.2.3 Cross-Tabulation with Existence of Peer Review
2.4 Conclusion
References
Chapter 3: A Survey of Management Control Systems and Managerial Behavior in Japanese Companies
3.1 Introduction
3.2 Survey Method and Sample Characteristics
3.3 Budgeting (Question 2)
3.4 Business Environment of Major Organizational Units (Question 3)
3.5 Characteristics of Major Organizational Units (Question 4)
3.6 Leadership of Managers [Question 5 (A)]
3.7 Managerial Behavior [Question 5 (B)]
3.8 Conclusion
References
Chapter 4: A Survey of Performance Management Systems in Japanese Companies
4.1 Introduction
4.2 Survey Method
4.3 Importance of Organizational Structure and Performance Measures (Question 1)
4.3.1 Organizational Structure
4.3.2 Importance of Performance Measures
4.4 Process for Setting Performance Targets and Levels
4.4.1 Performance Target-Setting Process
4.4.2 Performance Target Levels
4.5 How the Performance Management System and Its Characteristics Are Used (Question 3)
4.5.1 How the Performance Management System Is Used
4.5.2 Characteristics of the Performance Management System
4.5.3 Meetings and Performance Management Systems
4.6 Performance Evaluation Process at the End of the Year (Question 4)
4.7 Influential Factors (Question 6)
4.8 Conclusion
References
Chapter 5: The Influence of Parent-Performance Management Systems on Subsidiaries´ Decision-Making: Process of Parent-Performa...
5.1 Introduction
5.2 Theoretical Background and Hypotheses
5.2.1 The Process of PMS Use
5.2.1.1 Diagnostic Use of PMS
5.2.1.2 Interactive Use of PMS
5.2.2 Embeddedness Perspective
5.2.2.1 Interaction Effects of the Use of PMS and Subsidiaries´ External Embeddedness
5.3 Method
5.3.1 Data Collection
5.3.2 Variables
5.4 Results
5.4.1 Main Analyses Results
5.4.2 Supplemental Analyses Results
5.5 Discussion and Conclusion
5.5.1 Relevant Findings and Contributions
5.5.2 Implications
5.5.3 Limitations and Suggestions for the Future Research
Appendix A: Constructs, Measures, and Descriptive Statistics
Appendix B: Descriptive Statistics of Subsidiaries´ Decision-Making Authority Delegated by Headquarters
References
Chapter 6: Empirical Study on Capital Budgeting as a Management Process: Evidence from Japanese Manufacturing Firms
6.1 Introduction
6.2 Literature Review of Capital Budgeting Processes
6.3 Research Method and the Core Components of the Capital Budgeting Management Process
6.3.1 Data Collection
6.3.2 The Capital Budgeting Management Process
6.4 The Relationships Between Core Components and the Efficiency of the Capital Budgeting Management Process
6.5 Conclusion
References
Chapter 7: Exploring the Use of Balanced Scorecard in Functional Departments: A Case Study of Kirin Brewery Company, Limited
7.1 Introduction
7.2 Research Framework
7.2.1 Aligning Functional Departments with a Business Strategy
7.2.2 Effectiveness of a BSC in Functional Departments
7.2.3 Research Questions
7.3 Research Method
7.4 Case Study: The BSC in Functional Departments of Kirin Brewery
7.4.1 Case Study Outline
7.4.2 Cascading the BSC
7.4.2.1 Cascading the BSC from the SBU to Functional Departments
7.4.2.2 BSCs Between Higher and Lower Levels of the Organizational Hierarchies in Functional Departments
7.4.3 Coordination Between Functional Departments Using the BSC
7.4.4 BSC Effects in Functional Departments
7.5 Discussion
7.6 Conclusion
References
Chapter 8: Discussing the Balanced Scorecard as an Interactive Control System: A Case Study of a Food Company
8.1 Introduction
8.2 Research Framework
8.2.1 General Properties of the ICS
8.2.2 BSC as an ICS
8.2.3 Relationship Between the BSC as an ICS and Other MCS
8.3 Research Method
8.4 Case Study: Use of the BSC at Food Company X
8.4.1 Overview of the Business and BSC at Company X
8.4.1.1 Business Environment, Business Strategy, and Introduction of the BSC
8.4.1.2 Organizational Structure of Company X When Using the BSC
8.4.1.3 Overview of the BSC
8.4.2 Use of the BSC
8.4.2.1 Use of the BSC by Top Management
8.4.2.2 Use of the BSC by Operating Managers
8.4.2.3 Other Business Management Systems
8.4.3 Impact of the BSC
8.4.4 Discontinuation of the BSC and the Situation After
8.5 Discussion of the Case
8.5.1 Examination of the Five ICS Properties in the Use of the BSC
8.5.2 Examination of the Relationship with Other MCS
8.5.3 Examination of Strategy Emergence Through the ICS
8.6 Conclusion
References
Chapter 9: A Management Control Package for Associating Customer Satisfaction with Financial Performance: A Case Study on Cust...
9.1 Introduction
9.2 Previous Studies on the Relationship Between Customer Satisfaction and Financial Outcomes
9.2.1 Previous Studies in the Management Accounting and Marketing Fields
9.2.2 Perspectives for Addressing the Research Question
9.3 Case Study
9.3.1 Research Method and Survey Summary
9.3.2 Overview of Hoshino Resorts
9.3.3 Customer-Oriented Management
9.3.3.1 Management Reform and Vision Setting
9.3.3.2 Pursuit of Customer Satisfaction
9.3.3.3 Top Management´s Perception of Customer Satisfaction
9.3.4 Management of the Relationship Between Customer Satisfaction and Financial Outcomes
9.3.4.1 Organizational Structure
9.3.4.2 Strategy Development
9.3.4.3 Annual Planning
9.3.4.4 Performance of Duties
9.3.4.5 Comparison of Targets and Actual Results
9.3.4.6 Personnel Systems
9.3.5 Considerations
9.4 Conclusion
References
Chapter 10: Institutional Isomorphism of Corporate Social Responsibility Performance Measurement: A Case of a Japanese Homebui...
10.1 Introduction
10.2 Literature on CSR Performance Measurement
10.3 Analytical Framework
10.4 Research Method
10.5 A Case Study of CSR Performance Measurement at Misawa
10.5.1 An Overview of CSR Management
10.5.2 Assessing the Materiality of CSR Issues
10.5.2.1 The Introduction of the Materiality Assessment
10.5.2.2 Changes in the Assessment of the Materiality of CSR Issues
10.5.3 Setting CSR Performance Indicators
10.5.3.1 Waste Reduction Activities
10.5.3.2 Educational Support Program on Antarctic Observation Activities
10.6 Discussion
10.6.1 Isomorphism in Materiality Assessment
10.6.2 Homogenization in Setting Individual CSR Performance Indicators
10.7 Conclusion
References
