A Fitness between CEO Characteristics and Management Control

CEO특성과 경영통제간의 적합성에 관한 연구

  • Received : 2014.05.20
  • Accepted : 2014.07.11
  • Published : 2014.07.28


In order to improve organization performance by CEO's leadership, the control systems have to be designed in accordance with CEO's strategic orientation. A management control systems (MCS) is a system which gathers and uses information to evaluate the performance of different organizational resources like human, physical, financial and also the organization as a whole considering the organizational strategies. The current study is conducted with the objective to explore the effects of CEO's Characteristics (Risk-taking tendency, and Achievement motivation) and control types (Behavioral control, and Result control) on organization performance. The characteristics of ceo - behavior control and risk-taking propensity - results in significantly positive effect on management control. On the other hand, risk-taking propensity has influence negatively on behavior control. The behavioral control is received negative influence from risk-taking propensity. and it received positive influence from motivation. and then it has effect on organization performance(indirct effect). To achieve the purpose of this study, Structural Equation Model (SEM) has been applied.


CEO's Characteristics;Behavior Control;Result Control;Financial Performance


  1. R. Kaplan, "The role of nature in the urban context: Behavior and the Natural Environment,, Human Behavior and Environment, Vol.6, pp.127-161, 1983.
  2. Robert Brockhaus, Horwitz. "The Psychology of the Entrepreneur," in D.L. Sexton & R.W. Smilor (eds.), The Art and Science of Entrepreneurship, Cambridge, MA:Ballinger, 1985.
  3. Robert Simon, "The role of management control system in creating competitive advantage: New perspectives," Accounting Organizations and Society, Vol.12, pp.124-153, 1990.
  4. W. Robert and R. Vandenberg, Differences in Employee Attitudes and Behaviors Based on Rotter's (1966) Internal-External Locus of Control: Are They All Valid?" Human Relations, 1991.
  5. M. H. Nunnally, Janet M. D'Angelo, and Susan W. Craig, "Filamin concentration in cleavage furrow and midbody region: Frequency of occurrence compared with that of alpha-actinin and myosin," J. Cell, Vol.87, pp.216-219, 1980.
  6. W. G. Ouchi, "A Conceptual Framework for the Design of Organizational Control Mechanisms," Management Science, Vol.25, No.9, pp.833-847, 1979.
  7. C. Chen, P. Greene, and A. Crick, "Does Entrepr-eneurial Self-Efficacy Distinguish Entrepreneurs from Managers?," Journal of Business Venturing, Vol.13, pp.295-316, 1998.
  8. David Otley and A. Berry, "Control, organization and accounting," Accounting, Organizations and Society, Vol.5, pp.231-244, 1980.
  9. E. Flamholtz, "Accounting, budgeting and control systems in their organizational context: Theoretical and empirical perspectives," Accounting, Organizations and Society, Vol.8, pp.53-169, 1983.
  10. H. O. Rockness and M. D. Shields, "Organization control systems in research and development," Accounting, Organizations and Society, Vol.9, pp.165-177, 1984.
  11. Jeremy F. Dent, "Strategy, Organization and control: Some possibilities for accounting research," Accounting, Organization and Society, Vol.15, pp.3-25, 1990.
  12. J. C. Henderson and S. Lee, "Managing I/S Design Teams: A Control Theories perspective," Management Science, Vol.38, pp.757-777, 1992.
  13. Joseph Fisher, "Contingency-based research on management control systems: categorization by level of complexity," Journal of Accounting Literature, Vol.14, No.1, pp.24-53, 1995.
  14. J. B. Rotter, "Generalized expectancies for internal versus external control of reinforce-ment," Psychological Monographs, Vol.80, No.1, pp.1-28, 1966.
  15. K. A. Merchant, "Organizational controls and discretionary program decision making," Accounting, Organizations and Society, Vol.10, pp.67-85, 1985.
  16. L. Shi, "A Study on the Macro-Control Policy of China Real Estate Development," AISS: Advances in Information Sciences and Service Sciences, Vol.5, No.1, pp.202-211, 2013.
  17. A. Nahavandi and A. Malekzadeh, Organizational Culture in the Management of Mergers, Westport, CT: Quorum Books, 1993.