Redesign of Management Control Systems Following Change in Value Emphasis in Family-owned Firms

Abstract: The overall purpose of the thesis is to gather deeper insights into the redesign of management control systems (MCSs) following a shift in value emphasis in family-owned firms by exploring the different dynamics of the family business system (FBS). Furthermore, the research has aimed to find an answer to how a shift from family management to external management influences the value emphasis, and how this shift influences the management control system of a family-owned firm. Therefore, a single case study in a Dutch, privately held horticultural family firm has been conducted. The combination of Malmi and Brown’s (2008) MCS as a package typology with the systematic view of value orientations in FBSs by Distelberg and Sorenson (2009) has led to the development of a framework that enables the analysis of management controls in family firms that differ in their value emphases. This thesis shows that the change in governance structure has led to a change in value emphasis within a family-owned firm. The findings indicate that this shift in value emphasis has further influenced the overall usage of the MCS.