Specific Management Control Practices and Overall Performance Management Systems in Service Companies : A theoretical contribution

Abstract

The service sector operates within an economic landscape where the provision of services holds a predominant role compared to the production of tangible goods. This industry is often marked by heightened variability, increased customization of offerings, and a substantial reliance on human expertise. In the service-oriented landscape, customer-company interactions play a central role, with service quality, responsiveness, and innovation emerging as key determinants of success. In the specific context of research on management control and performance in service enterprises, it is crucial to recognize and account for the unique characteristics of this sector. Performance indicators in the service sector differ from those in traditional manufacturing, emphasizing metrics such as customer satisfaction, loyalty, operational efficiency, and the ability to innovate in service delivery. This distinctiveness calls for an adaptive approach to management control that is tailored to the intricacies of the service industry, aiming to maximize overall business performance.

This article aims to explore the intricate relationship between management control practices and the performance of service-oriented enterprises, shedding light on the current dynamics of this context. The primary objective of the study is to analyze how specific management control practices influence the overall performance of service companies. The findings underscore the critical importance of adjusting management control practices to align with the unique characteristics and comprehensive performance management systems of service-oriented enterprises. This research offers innovative perspectives on how companies can adapt their management control strategies to enhance their performance within an ever-evolving and dynamic environment, providing valuable insights for navigating the complexities of the service industry.

Keywords: Management control, performance, service, service companies, specific management control practices.

JEL Classification : M40, M54, M55.

Paper type: Theoretical Research