Risk management with management control systems: A pragmatic constructivist perspective
Research output: Journal contributions › Journal articles › Research › peer-review
Authors
This paper addresses the issue that calculative practices build on socially constructed facts that have both subjective and objective components. Using risk management as an example, we take a pragmatic-constructivist stance to explore how such a tool might be integrated in actor-based Management Control Systems. We propose a conceptual framework and a research agenda that accounts for actorship (L. Nørreklit, 2013) beyond numerical facts. This paper is conceptual and draws on secondary literature. Our framework highlights the non-linear, iterative nature of integrating calculative practices that specifically require complex reflection concerning the [1] validation if possibilities are factual (combining subjective and numerical data), [2] the elimination of illusions and sur-realities through constructive conflict/dialectical management, and [3] the co-construction of organization-wide topoi (causality and pertinent accounting practices). Our research furthers practice research on calculative practices through the development of a prescriptive rather than descriptive framework. It also offers propositions that future case study researchers can use.
| Original language | English |
|---|---|
| Journal | Corporate Ownership & Control |
| Volume | 13 |
| Issue number | 3 |
| Pages (from-to) | 72-81 |
| Number of pages | 10 |
| ISSN | 1727-9232 |
| DOIs | |
| Publication status | Published - 2016 |
| Externally published | Yes |
- Calculative practice, Management control systems, Practice theory, Pragmatic constructivism, Risk management
- Management studies