What drives companies to integrate Sustainability into Management Control Systems- Managerial Perception.

Key finding of the study

The findings identified managers’ perceived factors, such as environmental impact, stakeholder pressure and top management commitment, showcasing the difference between strongly and weakly integrated companies.

Authors

Udani Chathurika Edirisinghe, Murdoch University, Perth, Australia, Sabaragamuwa University of Sri Lanka

Md Moazzem Hossain, Murdoch University, Perth, Australia

Manzurul Alam. Murdoch University, Perth, Australia

Summary

This study explores the managerial conception of the determinants and barriers of sustainability integration into management control systems (MCS) manufacturing companies in Sri Lanka. Existing literature is scarce in identifying contextual and organisational factors that influence corporates to go beyond the mere adoption of controls to integrate with regular controls.  A multiple case study approach has been used to identify the management conception of barriers and enablers for sustainability control integration. The findings identified managers’ perceived factors, such as environmental impact, stakeholder pressure (customer, competitor and regulatory authorities) and top management commitment, showing a clear difference between strongly and weakly integrated companies. Contrary to the literature, domestic regulatory pressure and multinational ownership do not sufficiently drive MCS sustainability integration. The study adds value to the literature by presenting a theoretical framework based on the triangulation of different theories to recognise the significance of management ideas in sustainable integration.

Published in

Qualitative Research in Accounting & Management

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