The network effects of core values on management controls

Simons’ (1995b, 2000) levers of control have become one of the most prominently utilised management control system frameworks in the accounting literature. In this paper we focus on core values, which guide and motivate an organisation, an area of the framework not examined in the accounting literature. Specifically we examine the process through which a new core value develops. We also show how this process is influenced by and acts upon the other levers of control. We highlight how this process initially involves few actors, little complexity and creates a descriptive definition for the core value. Based on this descriptive definition more actors become involved, resulting in more complexity and focuses on these actors trying to develop an understanding of the practical relevance of the new core value. The process of developing the core value and the search for practical relevance necessitates the creation and transformation of other management controls. These management controls in turn change the core value and other actors within the process. The process of search and discovery provides belief control through embedding elements of the core value in the management controls that were created or transformed. While the core value may be displaced its effects on other controls remain in place thus showing how and why controls embody both technical and social elements.