Transformation Management and Sustainability Performance: On the Importance of the Enabling and Controlling Uses of Management Control Systems

Abstract

The purpose of this study is to investigate how transformation management affects the sustainability performance of companies and whether the enabling and controlling uses of management control systems (MCSs) mediate the relationship between a company's transformation management and sustainability performance in small- and medium-sized enterprises (SMEs). The analysis revealed that the controlling use of MCSs strongly advances transformation management actions toward higher sustainability performance, while no mediating effect was found when examining the enabling use of MCSs between the same connection. The findings contribute to the discussion on the relationship between transformation management and sustainability performance. The analysis also provides novel theoretical and practical insights into the role of enabling and controlling uses of MCSs in facilitating the transformation toward higher sustainability performance.