Importance, Challenges and Limitations of Management Control Systems’ Capability in owner-managed MSMEs for Sustainable Growth in Zimbabwe

Abstract

The article is based on a study that critically investigated theimportance of strengthening Management Control Systems’ (MCS)capability in pursuit of unlocking the sustainable growth potentialof owner-managed Micro Small and Medium Enterprises (MSMES)and examine the challenges they face in developing andimplementing effective Management Control Systems. Moststudies have documented the transition by these MSMEs fromhighly informal set-ups in their formative years as they seek toprofessionalise their operations, however the biggest challengeunearthed by the study is their failure to successfully implementMCSs. Employing a qualitative case study approach, data werecollected from 15 owner-managers of MSMEs in Zimbabwe'smanufacturing sector, each with at least two years of operationalexperience. The findings of the study to a broader extent stronglyindicate the massive importance of MCSs in protecting andadvancing business processes for a sustained businessoperational performance as they assist in effective decision-making. Further, the study has brought to the fore a plethora ofchallenges and limitations encountered uniquely by owner-managed MSMEs such as limited resources, lack of expertise,resistance to change, skills gap and cultural barriers when tryingto acquire and implement MCSs. In light of the findings, the study provides practical and useful approaches that can be deployedby owner managers in trying to acquire and implement MCSs fortheir sustainable operational efficiency and these includefocusing on MCS training, enlisting professional consultancyservices and ecosystem level interventions.