This work is licensed under a Creative Commons Attribution 4.0 International License.
Management Accounting as a Strategic Tool for Public Value in the Higher Education Sector
Corresponding Author(s) : Fandi Ahmad
Startupreneur Business Digital (SABDA Journal),
Vol. 5 No. 1 (2026): Startupreneur Business Digital (SABDA)
Abstract
This study explores the role of management accounting and control systems (MACS) as conceptualized through Simons Levers of Control framework in supporting public value creation, contributing to the growing body of literature on public value accounting. Adopting a mixed-method case study approach, which includes document analysis and semi structured interviews, the research uncovers varied applications of control systems within a Dutch university of applied sciences. The findings reveal a divergence in how control mechanisms are utilized. Belief systems and interactive control systems are employed extensively to facilitate strategic change and support the implementation of new strategic directions. In contrast, diagnostic control systems are primarily used at decentralized levels, functioning mainly as instruments to ensure compliance with operational and financial constraints. As such, belief and interactive controls form the core mechanisms for embedding public value considerations within the institution’s strategic orientation, while diagnostic controls serve to regulate activities at the operational level. Additionally, although the institution emphasizes the importance of engaging with external stakeholders, such interactions predominantly occur during the strategy formulation phase, with limited involvement observed during interim evaluations of the strategy, thereby refining the Levers of Control framework in the context of public value creation and demonstrating that contextual and unbalanced control configurations can effectively support public value orientation in higher education.
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- C. Van Noordt and L. Tangi, “The dynamics of ai capability and its influence on public value creation of ai within public administration,” Government Information Quarterly, vol. 40, no. 4, p. 101860, 2023.
- M. Mazzucato and J. Ryan-Collins, “Putting value creation back into “public value”: from market-fixing to market-shaping,” Journal of Economic Policy Reform, vol. 25, no. 4, pp. 345–360, 2022.
- L. Salemans and T. Budding, “Management accounting and control systems as devices for public value creation in higher education,” Financial Accountability & Management, vol. 40, no. 1, pp. 105–123, 2024.
- G. D. Carnegie, “Global university rankings: The macro-micro contradiction in public university management,” Accounting and Management Review Revista de Contabilidade e Gest˜ao, vol. 26, no. 1, 2022.
- A. Scupola and I. Mergel, “Co-production in digital transformation of public administration and public value creation: The case of denmark,” Government Information Quarterly, vol. 39, no. 1, p. 101650, 2022.
- T. Christensen and P. Lægreid, “Taking stock: New public management (npm) and post npm reforms trends and challenges,” Handbook on the politics of public administration, pp. 38–49, 2022.
- P. Virtanen and H. Jalonen, “Public value creation mechanisms in the context of public service logic: an integrated conceptual framework,” Public Management Review, vol. 26, no. 8, pp. 2331–2354, 2024.
- E. K. Funck, “Management control under post-npm: Replacing performance evaluation with trust-based management,” Financial Accountability & Management, vol. 41, no. 2, pp. 346–363, 2025.
- N. Muravu, “Strategic performance measurement and management: The distinctive nature of the public sector and implications on performance measures,” IOSR Journal of Business and Management, vol. 25, no. 12, pp. 26–52, 2023.
- P. Pavone, P. Ricci, and M. Calogero, “New challenges for public value and accountability in the age of big data: a bibliometric analysis,” Meditari Accountancy Research, vol. 32, no. 2, pp. 396–423, 2024.
- T. J. Kallio, K.-M. Kallio, M. Huusko, R. Pyykk¨o, and J. Kivist¨o, “Balancing between accountability and autonomy: the impact and relevance of public steering mechanisms within higher education,” Journal of Public Budgeting, Accounting & Financial Management, vol. 34, no. 6, pp. 46–68, 2022.
- R. S. Barros and A. M. D. S. d. C. Ferreira, “Management control systems and innovation: a levers of control analysis in an innovative company,” Journal of Accounting & Organizational Change, vol. 18, no. 4, pp. 571–591, 2022.
- P. A. Sunarya, U. Rahardja, S. C. Chen, Y.-M. Lic, and M. Hardini, “Deciphering digital social dynamics: A comparative study of logistic regression and random forest in predicting e-commerce customer behavior,” Journal of Applied Data Sciences, vol. 5, no. 1, pp. 100–113, 2024.
- L. H¨oglund, M. M˚artensson, and K. Thomson, “Strategic management, management control practices and public value creation: the strategic triangle in the swedish public sector,” Accounting, Auditing & Accountability Journal, vol. 34, no. 7, pp. 1608–1634, 2021.
- K. Baird, S. Su, and R. Munir, “The mediating role of levers of controls on the association between sustainable leadership and organisational resilience,” Journal of Management Control, vol. 34, no. 2, pp. 167–200, 2023.
- F. Alfiana, N. Khofifah, T. Ramadhan, N. Septiani, W. Wahyuningsih, N. N. Azizah, and N. Ramadhona, “Apply the search engine optimization (seo) method to determine website ranking on search engines,” International Journal of Cyber and IT Service Management, vol. 3, no. 1, pp. 65–73, 2023.
- S. Ayuso, X. Carbonell, and L. Serradell, “Assessing universities’ social sustainability: Accounting for stakeholder value,” International Journal of Sustainability in Higher Education, vol. 23, no. 2, pp. 443– 457, 2022.
- T. T. T. Phong, H. M. Dao, L. A. T. Nguyen et al., “Impact of strategic management accounting on operating performance: research in public universities of vietnam,” International Journal of Professional Business Review: Int. J. Prof. Bus. Rev., vol. 8, no. 8, p. 60, 2023.
- A. Y. M. Alastal, A. Ateeq, S. A. Ali, C. Z. M. Jamil, and H. Abd-Mutalib, “Levers of control framework and environmental strategy,” in The AI Revolution: Driving Business Innovation and Research: Volume 1. Springer, 2024, pp. 485–495.
- T. Gonc¸alves and C. Gaio, “The role of management accounting systems in global value strategies,” Journal of Business Research, vol. 124, pp. 603–609, 2021.
- D. S. Wuisan and T. Handra, “Maximizing online marketing strategy with digital advertising,” Startupreneur Business Digital (SABDA Journal), vol. 2, no. 1, pp. 22–30, 2023.
- U. Rahardja, T. Hongsuchon, T. Hariguna, and A. Ruangkanjanases, “Understanding impact sustainable intention of s-commerce activities: The role of customer experiences, perceived value, and mediation of relationship quality,” Sustainability, vol. 13, no. 20, p. 11492, 2021.
- P. Pineda and S. Mishra, “The semantics of diversity in higher education: differences between the globanorth and global south,” Higher Education, vol. 85, no. 4, pp. 865–886, 2023.
- M. Soleymanpor, R. Norouzi Ajirloo, and T. Alizadeh Hossein Hajloo, “Investigating the role of strategic control levers on competitive advantage with the role of innovative performance,” Journal of Strategic Management Studies, vol. 15, no. 60, pp. 287–300, 2024.
- A. H. Hussain, A. Ummihusna, S. Eni, W. N. W. Mohamad, and N. C. Musa, “Integrating industry 4.0 into higher education: a case study of a drone course for multidisciplinary learning course,” International Journal of Academic Research in Business and Social Sciences, vol. 14, no. 6, 2024.
- C. M. White, S. Mangubhai, L. Rumetna, and C. M. Brooks, “The bridging role of non-governmental organizations in the planning, adoption, and management of the marine protected area network in raja ampat, indonesia,” Marine Policy, vol. 141, p. 105095, 2022.
- Z. Aripin, F. Yulianty et al., “A quantitative performance management framework to improve community economy through omnichannel supply chain: a case study in the banking and marketing industry,” KRIEZ ACADEMY: Journal of development and community service, vol. 1, no. 1, pp. 15–24, 2023.
- O. Neumann, K. Guirguis, and R. Steiner, “Exploring artificial intelligence adoption in public organizations: a comparative case study,” Public Management Review, vol. 26, no. 1, pp. 114–141, 2024.
- F. Kitsios, M. Kamariotou, and A. Mavromatis, “Drivers and outcomes of digital transformation: The case of public sector services,” Information, vol. 14, no. 1, p. 43, 2023.
- B. E. Sibarani, C. Anggreani, B. Artasya, and D. A. P. Harahap, “Unraveling the impact of self-efficacy, computer anxiety, trait anxiety, and cognitive distortions on learning mind your own business: The student perspective,” Aptisi Transactions on Technopreneurship (ATT), vol. 6, no. 1, pp. 29–40, 2024.
- J. A. Pfister, P. Peda, and D. Otley, “A methodological framework for theoretical explanation in performance management and management control systems research,” Qualitative Research in Accounting & Management, vol. 20, no. 2, pp. 201–228, 2023.
- C. Lukita, G. A. Pangilinan, M. H. R. Chakim, D. B. Saputra et al., “Examining the impact of artificial intelligence and internet of things on smart tourism destinations: A comprehensive study,” Aptisi Transactions on Technopreneurship (ATT), vol. 5, no. 2sp, pp. 135–145, 2023.
- D. Agostino and M. Arnaboldi, “From cost accounting to strategic cost management: The experience of italian higher education,” in Managing Public Services. Routledge, 2021, pp. 61–78.
- E. Bracci, T. Mouhcine, T. Rana, and D. Wickramasinghe, “Risk management and management account- ing control systems in public sector organizations: a systematic literature review,” Public Money & Management, vol. 42, no. 6, pp. 395–402, 2022.
- D. S. S. Wuisan, R. A. Sunardjo, Q. Aini, N. A. Yusuf, and U. Rahardja, “Integrating artificial intelligence in human resource management: A smartpls approach for entrepreneurial success,” Aptisi Transactions on Technopreneurship (ATT), vol. 5, no. 3, pp. 334–345, 2023.
- E. Bracci, I. Saliterer, M. Sicilia, and I. Steccolini, “Accounting for (public) value (s): reconsidering publicness in accounting research and practice,” Accounting, Auditing & Accountability Journal, vol. 34, no. 7, pp. 1513–1526, 2021.
- M. Carlsson-Wall, L. Goretzki, J. Hofstedt, K. Kraus, and C.-J. Nilsson, “Exploring the implications of cloud-based enterprise resource planning systems for public sector management accountants,” Financial accountability & management, vol. 38, no. 2, pp. 177–201, 2022.
- L. Cannavacciuolo, G. Capaldo, and C. Ponsiglione, “Digital innovation and organizational changes in the healthcare sector: multiple case studies of telemedicine project implementation,” Technovation, vol. 120, p. 102550, 2023.
- H. Salmanzadeh, G. Kordestani, and H. Kazemi, “The role of management accounting in improving management control system in public sector,” Iranian Journal of Finance, vol. 6, no. 1, pp. 54–82, 2022.
- E. Dolan, S. Kosasi, and S. N. Sari, “Implementation of competence-based human resources management in the digital era,” Startupreneur Business Digital (SABDA Journal), vol. 1, no. 2, pp. 167–175, 2022.
- G. Grossi, I. Steccolini, P. Adhikari, J. Brown, M. Christensen, C. Cordery, L. Ferry, P. Lassou, B. Mc- Donald III, R. Raudla et al., “The future of public sector accounting research. a polyphonic debate,” Qualitative Research in Accounting & Management, vol. 20, no. 1, pp. 1–37, 2023.
- K. DERROUICH, E.-Z. Zakaria, and A. ELASSALI, “Conceptual analysis of the role of accounting in optimizing the management of higher education institutions,” International Journal of Accounting Finance Auditing Management and Economics, vol. 6, no. 4, pp. 733–746, 2025.
References
C. Van Noordt and L. Tangi, “The dynamics of ai capability and its influence on public value creation of ai within public administration,” Government Information Quarterly, vol. 40, no. 4, p. 101860, 2023.
M. Mazzucato and J. Ryan-Collins, “Putting value creation back into “public value”: from market-fixing to market-shaping,” Journal of Economic Policy Reform, vol. 25, no. 4, pp. 345–360, 2022.
L. Salemans and T. Budding, “Management accounting and control systems as devices for public value creation in higher education,” Financial Accountability & Management, vol. 40, no. 1, pp. 105–123, 2024.
G. D. Carnegie, “Global university rankings: The macro-micro contradiction in public university management,” Accounting and Management Review Revista de Contabilidade e Gest˜ao, vol. 26, no. 1, 2022.
A. Scupola and I. Mergel, “Co-production in digital transformation of public administration and public value creation: The case of denmark,” Government Information Quarterly, vol. 39, no. 1, p. 101650, 2022.
T. Christensen and P. Lægreid, “Taking stock: New public management (npm) and post npm reforms trends and challenges,” Handbook on the politics of public administration, pp. 38–49, 2022.
P. Virtanen and H. Jalonen, “Public value creation mechanisms in the context of public service logic: an integrated conceptual framework,” Public Management Review, vol. 26, no. 8, pp. 2331–2354, 2024.
E. K. Funck, “Management control under post-npm: Replacing performance evaluation with trust-based management,” Financial Accountability & Management, vol. 41, no. 2, pp. 346–363, 2025.
N. Muravu, “Strategic performance measurement and management: The distinctive nature of the public sector and implications on performance measures,” IOSR Journal of Business and Management, vol. 25, no. 12, pp. 26–52, 2023.
P. Pavone, P. Ricci, and M. Calogero, “New challenges for public value and accountability in the age of big data: a bibliometric analysis,” Meditari Accountancy Research, vol. 32, no. 2, pp. 396–423, 2024.
T. J. Kallio, K.-M. Kallio, M. Huusko, R. Pyykk¨o, and J. Kivist¨o, “Balancing between accountability and autonomy: the impact and relevance of public steering mechanisms within higher education,” Journal of Public Budgeting, Accounting & Financial Management, vol. 34, no. 6, pp. 46–68, 2022.
R. S. Barros and A. M. D. S. d. C. Ferreira, “Management control systems and innovation: a levers of control analysis in an innovative company,” Journal of Accounting & Organizational Change, vol. 18, no. 4, pp. 571–591, 2022.
P. A. Sunarya, U. Rahardja, S. C. Chen, Y.-M. Lic, and M. Hardini, “Deciphering digital social dynamics: A comparative study of logistic regression and random forest in predicting e-commerce customer behavior,” Journal of Applied Data Sciences, vol. 5, no. 1, pp. 100–113, 2024.
L. H¨oglund, M. M˚artensson, and K. Thomson, “Strategic management, management control practices and public value creation: the strategic triangle in the swedish public sector,” Accounting, Auditing & Accountability Journal, vol. 34, no. 7, pp. 1608–1634, 2021.
K. Baird, S. Su, and R. Munir, “The mediating role of levers of controls on the association between sustainable leadership and organisational resilience,” Journal of Management Control, vol. 34, no. 2, pp. 167–200, 2023.
F. Alfiana, N. Khofifah, T. Ramadhan, N. Septiani, W. Wahyuningsih, N. N. Azizah, and N. Ramadhona, “Apply the search engine optimization (seo) method to determine website ranking on search engines,” International Journal of Cyber and IT Service Management, vol. 3, no. 1, pp. 65–73, 2023.
S. Ayuso, X. Carbonell, and L. Serradell, “Assessing universities’ social sustainability: Accounting for stakeholder value,” International Journal of Sustainability in Higher Education, vol. 23, no. 2, pp. 443– 457, 2022.
T. T. T. Phong, H. M. Dao, L. A. T. Nguyen et al., “Impact of strategic management accounting on operating performance: research in public universities of vietnam,” International Journal of Professional Business Review: Int. J. Prof. Bus. Rev., vol. 8, no. 8, p. 60, 2023.
A. Y. M. Alastal, A. Ateeq, S. A. Ali, C. Z. M. Jamil, and H. Abd-Mutalib, “Levers of control framework and environmental strategy,” in The AI Revolution: Driving Business Innovation and Research: Volume 1. Springer, 2024, pp. 485–495.
T. Gonc¸alves and C. Gaio, “The role of management accounting systems in global value strategies,” Journal of Business Research, vol. 124, pp. 603–609, 2021.
D. S. Wuisan and T. Handra, “Maximizing online marketing strategy with digital advertising,” Startupreneur Business Digital (SABDA Journal), vol. 2, no. 1, pp. 22–30, 2023.
U. Rahardja, T. Hongsuchon, T. Hariguna, and A. Ruangkanjanases, “Understanding impact sustainable intention of s-commerce activities: The role of customer experiences, perceived value, and mediation of relationship quality,” Sustainability, vol. 13, no. 20, p. 11492, 2021.
P. Pineda and S. Mishra, “The semantics of diversity in higher education: differences between the globanorth and global south,” Higher Education, vol. 85, no. 4, pp. 865–886, 2023.
M. Soleymanpor, R. Norouzi Ajirloo, and T. Alizadeh Hossein Hajloo, “Investigating the role of strategic control levers on competitive advantage with the role of innovative performance,” Journal of Strategic Management Studies, vol. 15, no. 60, pp. 287–300, 2024.
A. H. Hussain, A. Ummihusna, S. Eni, W. N. W. Mohamad, and N. C. Musa, “Integrating industry 4.0 into higher education: a case study of a drone course for multidisciplinary learning course,” International Journal of Academic Research in Business and Social Sciences, vol. 14, no. 6, 2024.
C. M. White, S. Mangubhai, L. Rumetna, and C. M. Brooks, “The bridging role of non-governmental organizations in the planning, adoption, and management of the marine protected area network in raja ampat, indonesia,” Marine Policy, vol. 141, p. 105095, 2022.
Z. Aripin, F. Yulianty et al., “A quantitative performance management framework to improve community economy through omnichannel supply chain: a case study in the banking and marketing industry,” KRIEZ ACADEMY: Journal of development and community service, vol. 1, no. 1, pp. 15–24, 2023.
O. Neumann, K. Guirguis, and R. Steiner, “Exploring artificial intelligence adoption in public organizations: a comparative case study,” Public Management Review, vol. 26, no. 1, pp. 114–141, 2024.
F. Kitsios, M. Kamariotou, and A. Mavromatis, “Drivers and outcomes of digital transformation: The case of public sector services,” Information, vol. 14, no. 1, p. 43, 2023.
B. E. Sibarani, C. Anggreani, B. Artasya, and D. A. P. Harahap, “Unraveling the impact of self-efficacy, computer anxiety, trait anxiety, and cognitive distortions on learning mind your own business: The student perspective,” Aptisi Transactions on Technopreneurship (ATT), vol. 6, no. 1, pp. 29–40, 2024.
J. A. Pfister, P. Peda, and D. Otley, “A methodological framework for theoretical explanation in performance management and management control systems research,” Qualitative Research in Accounting & Management, vol. 20, no. 2, pp. 201–228, 2023.
C. Lukita, G. A. Pangilinan, M. H. R. Chakim, D. B. Saputra et al., “Examining the impact of artificial intelligence and internet of things on smart tourism destinations: A comprehensive study,” Aptisi Transactions on Technopreneurship (ATT), vol. 5, no. 2sp, pp. 135–145, 2023.
D. Agostino and M. Arnaboldi, “From cost accounting to strategic cost management: The experience of italian higher education,” in Managing Public Services. Routledge, 2021, pp. 61–78.
E. Bracci, T. Mouhcine, T. Rana, and D. Wickramasinghe, “Risk management and management account- ing control systems in public sector organizations: a systematic literature review,” Public Money & Management, vol. 42, no. 6, pp. 395–402, 2022.
D. S. S. Wuisan, R. A. Sunardjo, Q. Aini, N. A. Yusuf, and U. Rahardja, “Integrating artificial intelligence in human resource management: A smartpls approach for entrepreneurial success,” Aptisi Transactions on Technopreneurship (ATT), vol. 5, no. 3, pp. 334–345, 2023.
E. Bracci, I. Saliterer, M. Sicilia, and I. Steccolini, “Accounting for (public) value (s): reconsidering publicness in accounting research and practice,” Accounting, Auditing & Accountability Journal, vol. 34, no. 7, pp. 1513–1526, 2021.
M. Carlsson-Wall, L. Goretzki, J. Hofstedt, K. Kraus, and C.-J. Nilsson, “Exploring the implications of cloud-based enterprise resource planning systems for public sector management accountants,” Financial accountability & management, vol. 38, no. 2, pp. 177–201, 2022.
L. Cannavacciuolo, G. Capaldo, and C. Ponsiglione, “Digital innovation and organizational changes in the healthcare sector: multiple case studies of telemedicine project implementation,” Technovation, vol. 120, p. 102550, 2023.
H. Salmanzadeh, G. Kordestani, and H. Kazemi, “The role of management accounting in improving management control system in public sector,” Iranian Journal of Finance, vol. 6, no. 1, pp. 54–82, 2022.
E. Dolan, S. Kosasi, and S. N. Sari, “Implementation of competence-based human resources management in the digital era,” Startupreneur Business Digital (SABDA Journal), vol. 1, no. 2, pp. 167–175, 2022.
G. Grossi, I. Steccolini, P. Adhikari, J. Brown, M. Christensen, C. Cordery, L. Ferry, P. Lassou, B. Mc- Donald III, R. Raudla et al., “The future of public sector accounting research. a polyphonic debate,” Qualitative Research in Accounting & Management, vol. 20, no. 1, pp. 1–37, 2023.
K. DERROUICH, E.-Z. Zakaria, and A. ELASSALI, “Conceptual analysis of the role of accounting in optimizing the management of higher education institutions,” International Journal of Accounting Finance Auditing Management and Economics, vol. 6, no. 4, pp. 733–746, 2025.