The Use of Management Control Systems in Social Enterprises
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Abstract
SE has a distinctive characteristic which is a dual mission between social and financial sustainability goals. The dual mission induces the tension between the goals. Much literature investigates how to manage the tensions; however, most of them propose a theoretical analysis rather than empirical evidences. Some literature suggests that a cleared performance measurement should be used to resolve the tension. While performance measurement, which is one kind of Management Control System (MCS), is included, other MCSs are not explored. This research provides an empirical evidence how to use the MCS to manage the tension of SE. The research draws on a MCS framework, proposed by Tessier and Otley (2012) and uses data from a qualitative study of Thai SEs. The result found that social control is essential to achieve tension management. The result extends MCS literature by providing empirical evidence of the use of MCS in a new form of organization. It also reveals knowledge on how to use MCS for SE to achieve both financial sustainability and social goals simultaneously.
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References
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