USE OF CONTROLLING INSTRUMENTS IN CROATIAN COMPANIES DURING THE PANDEMIC

Abstract

Nowadays, in times of the corona crisis, controlling is gaining much attention because it represents an effective internal mechanism that can greatly contribute to a timely and rapid response to changes. Controlling activities reflect the quality of company management at the strategic, tactical and operational levels. In doing so, controlling uses appropriate instruments and contributes to business efficiency and effectiveness. The research aims to determine the current state of controlling instrument application (operational/strategic) in companies. Furthermore, we examine the role of controlling in stabilizing business operations and adjusting business strategies that affect business performance indicators in the context of the corona crisis. The survey method was used, and data were collected from 180 companies of different sizes in the Republic of Croatia. The survey was conducted in 2021. Nonparametric techniques, the chi-square test and the Kruskal-Wallis test were used for hypothesis testing. The findings show that (i) there is a significant relationship between the role of controlling in business stabilization and business strategy redirection in times of corona crisis, thus affecting business indicators measured by liquidity, profitability and indebtedness; (ii) there is a statistically significant difference in the application of operational controlling instruments between companies that have established a controlling department and those without a controlling department; and (iii) there is no statistically significant difference in the application of strategic controlling instruments between companies that have established a controlling department and those without a controlling department. The results of the study provide insight into the application of controlling instruments in Croatian companies during the corona crisis and empirical implications for both academics and practitioners.