Effect of Management Control Systems and Corporate Social Responsibility Practices on Corporate Performance of Manufacturing Companies in Nigeria

This research investigates the relationships among management control systems (MCS), corporate social responsibility (CSR) practices, and corporate performance (CP) in Nigerian manufacturing enterprises. Concurrently to this purpose, the research paper evaluates the direct impact that MCS have on the financial and non-financial performance measures among manufacturing companies in Nigeria. The conceptual foundation rests on the resource-based view (RBV) and shareholder theory (ST). Using a cross-sectional design, the study followed a random sampling route and thus 280 valid survey questionnaires were obtained and subjected to the process of quantitative analysis. Data examination was performed using partial least squares structural equation modelling (PLS-SEM) in SmartPLS 3.2.9, enabling a rigorous empirical test of the hypothesised associations. The results show that MCS and CSR practices have a significant impact and, therefore, support the focus of the RBV on intangible resource and also meet the assumptions of the ST with regard to shareholder value created when integrating CSR into MCS. In totality, the research has brought in empirical knowledge to the theoretical device and provided operational knowledge to Nigerian manufacturing firms that are hopeful of improvement in performance using synergistic control of management and sustainable practices. The key findings indicate that, MCS have both direct and significant relationship with CSR, and have a direct relationship with financial and non-financial performance. In addition, CSR affect CP (both financial performance and non-financial performance). These empirical findings are explained with the framework of relations between RBV and a stakeholder theory implies further theoretical discussion. The study provides also a number of recommendations that are to be applied to the managerial practice but are limited by the context of Nigeria. Longitudinal studies combining mixed methods could be an asset to future studies in order to get more fine-grained qualitative and quantitative results extending the empirical and theoretical boundaries of the discipline.