Luciano Marchi

Generating Knowledge by combining prediction models with information technology

The process of planning is largely based on the way the Information Technology supports decision makers to formulate the future objectives from the past results, and, at the same time, managing knowledge development. In this perspective, the past business dynamics are very important in order to estimate the future ones; this way, taking some aspects arising from the variance analysis, can improve the understanding of past data and, consequently, improve the reliability of estimation. The aim of the paper is to discuss how different modelling approaches allow the process to evolve from supporting decisions to generating knowledge.

Editoriale. Controllo interno-esterno nella valutazione dei rischi e delle performance aziendali

The scope of this article is the analysis of the reputation risk management process with the aim to define a conceptual model that could be applied to identify, assess and mitigate this type of risk. This model is based on the analysis of the extant literature on risk management and on corporate reputation. This analysis reveals that the measurement of the reputational risk is a controversial aspect and there are different approaches that could be used to carry out this activity. Furthermore the value of the corporate reputation may be influenced by many variables and a wide range of actions could be implemented to reduce the probability and/or the impact. However the analysis of the existing models for reputation risk management reveals noticeable differences regarding the variables and the methodology that could be used. Based on these findings, our conceptual model proposes a qualitative methodology to assess a set of reputational risk drivers. Moreover the model highlights the importance of the internal control systems and the crisis communication management for risk mitigation. Future steps include the formal validation of this model through an empirical investigation that will be carried out on a selected number of Italian companies.

Controlling and reporting for strategy

Management Control is an academic journal devoted to the advancement of management control, management accounting and information systems knowledge. The journal provides a forum for the exchange of insights, knowledge and information based on both theoretical development and empirical evidence. Our mission to publish high quality research manuscripts goes on with this special issue of Management Control, including a selection of five papers presented at the 1 Workshop of the Management Control Journal “Controlling and reporting for strategy”, held in Pisa in February 2012. Drawing on the literature on accounting change and on the impacts of organizational life-cycle on management accounting systems, the first paper by Zoni, Dossi and Morelli discusses how the MAS change process differentiates through the organization lifecycle. The field study suggests that, to achieve successful MAS changes, the organization should focus on the design phase at the organizations’ birth and at its revival stages. In the growth, maturity and decline stages, the organization should instead focus on the implementation phase. The second article by Chiucchi, Gatti and Marasca investigates the relationship between MAS and ERP systems in a medium-sized firm. In a departure from prior research, the Authors also focus on the way MAS can influence the design, the implementation and the use of ERP systems. Interestingly, the paper found evidence of a bidirectional relationship between MAS and ERP systems.

Performance Audit in the Public Sector. What is the contribution to the Performance Management

This paper examines possible future improvements of performance audit/performance management relationship in the public sector. Performance measurement, management and audit are strictly linked and influence each other. Scientific literature highlighted the coexistence of two contrasting sides. On one hand the positive side regards, for example, accountability and performance improving. On the other hand, a wrong use of performance audit process might lead to several problems such as: unintended consequences, performance paradox etc. Based on these premises, the research investigates on whether the performance audit really makes the difference, that is, how much performance audit contributes to performance management. This paper does not give an answer to this question but rather highlights the drawbacks and weak points as they come out from the analysis of various studies.

Governance codes and types of issuer: a global study

We study the relationship between the types of issuer and the contents of the governance codes in the new-institutional theory, using a global sample of over 70 national governance codes. We hypothesise that the code recommendations are influenced by the isomorphic pressure to embrace new social practices, exerted by the different types of issuer. The findings show that codes issued involving multiple stakeholder groups and organisations in hybrid committees are more likely to: 1) include recommendations that take into account multiple political and social institutional demands; 2) adapt the mainstream agency-theory-based governance model to the national setting. Overall, the policy-making negotiations among different stakeholder groups in the local institutional setting appear to be determinant in shaping the recommendations of the code and in improving the promotion of good governance among firms. To the best of our knowledge, this is the first study to systematically investigate the relationship between the types of issuer and the contents of codes, in a global sample.

A New Perspective for Accounting-Based Business Planning Simulation: An Integration with Agent-Based Simulation

This paper examines possible future developments of accounting-based business simulation models applied to business planning as knowledge generators. To this purpose, we tried to elaborate a theoretical framework by integrating system dynamics models and agent-based models. Although such an integration has already been put in practice for general purposes, it is still a new issue for planning and control systems.

La comunicazione al mercato delle performance economico-finanziarie: il ruolo del controllo di gestione

The general framework of this paper is the evolution of financial and non-financial reporting along with internal and external conditions of companies, which explain this evolutionary path. Starting from this framework, the objective of this study is to analyze whether Management Control could be included among the internal conditions that lead to changes in the financial and non-financial reporting. The methodological approach is based on both deductive and inductive logic. Thus, the answer to the research question is provided by the analysis of the literature and is strengthened by a case study.

Percorsi di integrazione tra auditing e controllo di gestione

This article reviews the research streams published on this journal. We review the journal integrated research approach within the planning, management and information systems fields. Integrated analysis regards the internal-external dimensions, as well as the public-private dimension of the firm. The article links these themes to the papers included in this issue.

Hierarchical and Relational Database Accounting Systems: Critical Aspects and Trade-Offs

Although the transition from hierarchical to relational databases marked a crucial turning point in the development of accounting systems, the concept of hierarchy has not entirely been abandoned. The aim of this research is to highlight the critical aspects and trade-offs between the hierarchical and relational structures of a database accounting system (DAS). First, we address the relationships between database accounting structure and accounting data coding: hierarchical coding, as distinct from sequential encoding schemes, may have different implications on the selectivity/accuracy/efficiency of the DAS. Next, we investigate the impact that both structure and data encoding schemes have on select queries and update queries: hierarchical models allow for higher efficiency in performing select queries, but higher rigidity in executing update queries; conversely, relational models allow for higher flexibility of update queries, but higher complexity in performing select queries. Finally, we offer suggestions for managing the trade-offs between both types of DAS.