Management control system and performance of Cameroonian SMES

Abstract

Faced with competition and the ever-increasing demands of stakeholders, Small and Medium-Sized Enterprises (SMEs) are required to regularly review and adjust their management methods. To this end, management control with the device that it entails can nevertheless facilitate the task of their manager; either for strategic and technological monitoring, or for the management of the company in general. Given the importance of management control in the manager's decision-making process, this study questions whether the management control system of the SME would not have an impact on their performance in Cameroon? Under the prism of contingency, agency and decision theories, the main objective of this study is to analyze the influence of the management control system on the performance of SMEs in Cameroon. Methodologically, we used correlation and regression tests on data collected by questionnaires in September and October 2021 on a sample of 315 SMEs from the cities of Yaoundé, Douala and the Far North (Ngaoundéré, Garoua and Maroua). The results obtained show that the management control system significantly influences the performance of SMEs in Cameroon. More specifically, compliance with the budget principle, the use of management control tools, budgetary participation and the use of the management control report in the decision-making process are variables that positively affect the performance of SMEs in Cameroon. We also note that compliance with the budget process does not significantly affect the performance of the SME. In terms of managerial implications, the study recommends that managers of SMEs wishing to improve performance, use management control tools in their management system, respect budgetary principles, take into account opinions and suggestions employees when preparing the budget and to use the information contained in the management control report in their decision-making.

Keywords: management control layout, performance, budgetary contribution, use of management control tools, compliance with budgetary principles

JEL Classification: L25, M49

Paper type: Empirical research