Work

Management Control in the Space of Industry 4.0: A Holistic Perspective for Organisations Using Systems Thinking Approach

Year: 2025

Type: article

Abstract: The rapid digital transformation driven by Industry 4.0 has redefined traditional management control practices and necessitated a holistic rethinking of corporate governance. This paper presents an integrative framework that blends established management control systems with the dynamic demands of Industry 4.0 through the application of a comprehensive systems thinking approach. By developing an influence matrix, the work systematically maps the interdependencies between key elements of management control—such as budgeting, performance appraisal and organisational culture and key design principles of Industrie 4.0, including interoperability, virtualisation and real-time capability. The framework not only highlights the complex feedback loops and bidirectional influences that underpin digital transformation efforts but also provides actionable insights for organisations looking to adapt their control mechanisms to the rapidly evolving technology landscape and ensure a sustainable competitive advantage in an increasingly connected industrial environment.

Source: Open Journal of Business and Management

DOI: 10.4236/ojbm.2025.133112

Authors: Anitha Siriwardana, Siegfried Zürn, Abeysinghe Arachchige Chandrasiri Abeysinghe

Institutions: University of Colombo, Esslingen University of Applied Sciences

Language: English

Topic: Accounting and Organizational Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: diamond

OpenAlex ID: W4410735002