Applying the viable system model in an MCS: Addressing relationships between ERP and budgeting

Wipawee Paulsson, Björn Johansson

Research output: Chapter in Book/Report/Conference proceedingPaper in conference proceedingpeer-review

1 Citation (SciVal)


We apply the viable system model (VSM) in the management control system (MCS) area in order to address the multifariousrelationships between enterprise resource planning (ERP) systems and budgeting through the introduction of five researchcriteria: ERP system, budgeting, informal control, organizational hierarchy and the relationships among them. The researchquestion discussed is: How can we develop an MCS that addresses the relationships among budgeting, ERP systems,informal control and organizational hierarchy? It is found that the VSM application overcomes the limitations in MCSframeworks by addressing the relationships among formal and informal sub-control components across all the organizationlevels. The main conclusion of the research is that the amended VSM could be used to describe and explain the social aspectbetween ERP and budgeting in organizations. The unintended use and disconnection of ‘ERP as a database’ in VSM’s system2 explains why the relationship between ‘ERP as a system’ and budgeting remains multifarious.
Original languageEnglish
Title of host publication[Host publication title missing]
PublisherAssociation for Information Systems
Publication statusPublished - 2011
EventAmericans Conference on Information Systems AMCIS 2011 - Detroit, US
Duration: 2011 Aug 5 → …


ConferenceAmericans Conference on Information Systems AMCIS 2011
Period2011/08/05 → …

Subject classification (UKÄ)

  • Information Systems, Social aspects


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