This study aims to examine how family business organizational culture functions as an informal control mechanism shaping the configuration, strategic alignment and perceived usefulness of management accounting and control systems (MACS), with particular emphasis on the use of non-financial key performance indicators (KPIs).
Drawing on institutional theory, the resource-based view and the dynamic capabilities perspective, the study adopts a quantitative approach based on a survey of 202 Portuguese family businesses. The data were analyzed using statistical techniques to assess associations between organizational culture, firm characteristics, and the use of non-financial KPIs within MACS.
The findings indicate that family businesses predominantly rely on customer satisfaction indicators, while innovation- and people-related KPIs are adopted less systematically. Firm size is associated with differences in the adoption of selected non-financial indicators, particularly those related to human resources. Moreover, a strong family-oriented culture is positively associated with the strategic alignment of MACS and enhances managers’ perceptions of the usefulness of non-financial performance measures. The findings further suggest that family culture exerts a stronger influence on the alignment and use of MACS than on the broad adoption of non-financial KPIs, highlighting the importance of interpretative and cultural mechanisms in management control processes.
The cross-sectional design and national scope of the sample limit causal inference and generalizability. Future research could extend this analysis through longitudinal, cross-country and qualitative studies to further explore the organizational mechanisms underlying MACS adaptation in family businesses.
The results suggest that aligning non-financial KPIs with family values and long-term orientation strengthens the role of MACS as tools for strategic coordination, organizational learning and value preservation. The findings also highlight the importance of balancing stakeholder-facing indicators, such as customer satisfaction, with capability-building indicators related to innovation and people management.
This study contributes to management accounting and family business research by demonstrating that family organizational culture influences not only the adoption of performance measures but, more importantly, the way management control systems are aligned with strategic objectives and interpreted by organizational actors. By integrating cultural, institutional and management control perspectives, the study provides new insights into the mechanisms through which non-financial KPIs support long-term value creation in family firms.
