Journal of Strategic Management Studies
Online ISSN : 2434-124X
Print ISSN : 1883-9843
The Effects of Budgetary Control System, Belief System and Employee’s Perception of Empowerment: A Test of Three-way Interaction
Yuri Fukaya
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2022 Volume 14 Issue 1 Pages 31-44


To execute business strategy under an uncertain environment, several management control systems (MCS) need to be used as a package (e.g., Simons, 1995). Even if the MCS are designed as a package, organizations could not adapt to the changing environment without empowering frontline employees. This study is to aim to examine the effect of budgetary control system, belief system, and employee’s perception of empowerment on individual kaizen behavior quantitatively and qualitatively selecting a business hotel company as a research site. First, this study verifies a three-way interaction based on questionnaire survey data. The results show that when the degree of perception of empowerment is higher, the synergetic effect is more significant. Second, this study conducts qualitative research to confirm the validity of quantitative results. The contribution of the paper is to extend the knowledge of MCS as a package concerning the question of ‘why the results of synergetic effect of control systems differ?’ by demonstrating the impact of the employee’s perception of empowerment on the synergetic effect.

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