Management Control Systems Focused on the Customer: Evidence from Brazil
Flavio Roberto Mantovani, Carlos Alberto Pereira

The turbulent changes in the business environment and the trend in new technologies for the management of customer bases signal the way for administrators to manage and maximize the value of a company’s customer base. Thus, this study seeks to understand the Brazilian business environment and the influence of external and internal customer-focused contingency factors in the design and use of management control systems (MCSs) from the perspective of contingency theory. Data from a sample consisting of 83 Brazilian companies were collected through survey-type research. For data analysis, we adopted the technique of structural equation modelling using the partial least squares (PLS) estimation method. The results confirm all the research hypotheses. We conclude that the characteristics of the environment play a considerable part in decisions involving the internal configuration of these contingency factors and the design of customerfocused MCSs. The design of a customer-focused MCS serves as a diagnostic tool in monitoring and controlling targets, making adjustments to the budget and reviewing goals. Furthermore, through critical review, MCSs make it possible to identify threats and opportunities, turning unprofitable customers into profitable customers. As well as providing elements for the appropriate allocation of resources to obtain and retain loyalty.

Full Text: PDF     DOI: 10.15640/jmm.v5n1a5