The use of management control systems within family owned SMEs

Abstract

Research examining the use of control systems in the family context is scant. Through a qualitative case-based study we will examine how family firms cope with the use of management control systems. Therefore, a distinction is made between family-owned firms which are managed by family members and family-owned firms which are managed by external, non-family members, i.e.professional managers. This situation is approached through the owner/manager relationship understanding of the Agency Theory. The taxonomy of control which is used, will distinguish between formal and informal types of control. This corresponds with the main dichotomy which occurs in most control typologies of previous literature.