Management Control Systems in Small Business Transfers — A Resource-Based View

Abstract

This study investigates whether post-business transfer MCS development (PBTMCSD) is associated with post-business transfer success (PBTS) in small firms. The data for the study was collected in January 2012 as a web-based survey. The target group consisted of acquirers (both external buyers and family business successors) who had implemented a business transfer during 2006–2011 in Finland. A total of 178 questionnaires were sent out, and 67 responses were received. Regression analysis is used to investigate the relationship between PBTMCSD and PBTS. We utilize both resource-based view (RBV) and contingency theory. The results indicate that PBTMCSD has a positive and significant relation with PBTS. Our findings highlight the importance of PBTMCSD even in small companies in the context of business transfer. However, the relationship between PBTMCSD and PBTS performance was stronger for firms with five or more employees as well as firms with previous experience of business transfers.