Management controls in family-owned businesses (FOBs): A case study of an Indonesian family-owned University

This paper reports on the results of a case study of management controls in an Indonesian family-owned University. The paper attempts to understand the nature and dynamics of management controls in the operations of the University. Data for the analyses are gathered from multiple sources including document analysis, observations and semi-structured interviews. The findings of the case study showed that culture and social relations are very instrumental in the management of the University [Ansari, S. L., & Bell, J. (1991). Symbolism, collectivism and rationality in organizational control. Accounting, Auditing and Accountability Journal, 4(2), 4–27]. Decisions such as recruitment, rewards, performance evaluation, and resource allocations are often made in cognizance of social and cultural factors. The strong influence of culture and social relations in the organization thus made formal management controls less relevant. These findings have implications for understanding management controls in FOBs especially in the developing world.