This paper focuses on the manner in which the architecture of control systems of a company can be affected by the interplay of several external and internal forces over the time. As its object of enquiry, the Italian manufacturer Piaggio (well known for being the producer of the scooter Vespa) provides us with a glimpse of management accounting techniques across almost a century in a context of economic instability and political and social tensions in the country. In this respect, this paper identifies three main periods of analysis strictly liked to the history of Italy in the last century: a) 1884 –World War I; b) years between the two World Wars and the rise of fascism and c) World War II, Miracolo Italiano (Italian “Economic Miracle”) and the change of ownership of the company. The conditioning influences of internal and external forces and their interplay with Piaggio's costing concerns are examined. The study suggests that changes in management control systems at Piaggio was dependant on a complex set of relationships and preconditions and that the specificity of the company's accounting controls was tied to both the interplay of internal and external forces, for instance changes in the production were motivated for instance by wars requirements, rise of the fascist regime and the consequent protectionism, but also low market competition, economic aids coming from the Marshall Plan, heavy investments on innovation, low wages, increasing power of the trade unions and strikes of the workforce. Findings coming from this paper highlight that the developments and changes that occurred in the structure of management control systems in Piaggio were carried out in order to enable the business to survive to changes and response to specific managerial and organizational needs

Management accounting change in an Italian manufactory company (1884-1975)

francesca francioli
2015-01-01

Abstract

This paper focuses on the manner in which the architecture of control systems of a company can be affected by the interplay of several external and internal forces over the time. As its object of enquiry, the Italian manufacturer Piaggio (well known for being the producer of the scooter Vespa) provides us with a glimpse of management accounting techniques across almost a century in a context of economic instability and political and social tensions in the country. In this respect, this paper identifies three main periods of analysis strictly liked to the history of Italy in the last century: a) 1884 –World War I; b) years between the two World Wars and the rise of fascism and c) World War II, Miracolo Italiano (Italian “Economic Miracle”) and the change of ownership of the company. The conditioning influences of internal and external forces and their interplay with Piaggio's costing concerns are examined. The study suggests that changes in management control systems at Piaggio was dependant on a complex set of relationships and preconditions and that the specificity of the company's accounting controls was tied to both the interplay of internal and external forces, for instance changes in the production were motivated for instance by wars requirements, rise of the fascist regime and the consequent protectionism, but also low market competition, economic aids coming from the Marshall Plan, heavy investments on innovation, low wages, increasing power of the trade unions and strikes of the workforce. Findings coming from this paper highlight that the developments and changes that occurred in the structure of management control systems in Piaggio were carried out in order to enable the business to survive to changes and response to specific managerial and organizational needs
2015
2295 - 1660
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11367/85074
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