Risk management with management control systems: A pragmatic constructivist perspective
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In: Corporate Ownership & Control , Vol. 13, No. 3, 2016, p. 72-81.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Risk management with management control systems
T2 - A pragmatic constructivist perspective
AU - Lueg, Rainer
AU - Knapik, Magdalena
PY - 2016
Y1 - 2016
N2 - 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.
AB - 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.
KW - Calculative practice
KW - Management control systems
KW - Practice theory
KW - Pragmatic constructivism
KW - Risk management
KW - Management studies
UR - http://www.scopus.com/inward/record.url?scp=84986903202&partnerID=8YFLogxK
U2 - 10.22495/cocv13i3p6
DO - 10.22495/cocv13i3p6
M3 - Journal articles
AN - SCOPUS:84986903202
VL - 13
SP - 72
EP - 81
JO - Corporate Ownership & Control
JF - Corporate Ownership & Control
SN - 1727-9232
IS - 3
ER -