engleski

The use of controlling instruments during the pandemic in Croatian companies

Nowadays, in times of corona crisis, controlling is gaining much attention because it represents an effective internal mechanism that can greatly contribute to a timely and rapid response to changes. Controlling activities reflect the quality of company management at the strategic, tactical, and operational level. In doing so, controlling uses appropriate instruments and contributes to business efficiency and effectiveness. Aim of the research is to determine the current state of controlling instrument application (operational/strategic) in companies. Further, we examine the role of controlling in stabilizing business operations and adjusting business strategies that affect business performance indicators in the context of the corona crisis. The survey method was used and data were collected from 180 companies of different size in the Republic of Croatia. The survey was conducted in 2021. Nonparametric techniques, Chi square test and the Kruskal Wallis test were used for hypothesis testing. The findings show: (1) there is a significant relationship between the role of controlling in business stabilization and business strategy redirection in times of corona crisis and thus affects business indicators measured by liquidity, profitability and indebtedness, (2) there is a statistically significant difference between those companies who established controlling department and those without a controlling department in the application of operational controlling instruments, (3) there is no a statistically significant difference between those companies who established controlling department and those without a controlling department in the application of strategic controlling instruments. The results of the study provide insight into the application of controlling instruments in Croatian companies during corona crisis, and empirical implications for academics and practitioners. Implications for Central European audience: Nowadays, market volatility and external factors significantly influence the business decisions of Central European companies. In order for managerial decisions to be timely and effective, controlling uses various instruments with the aim of better advising managers. In order to be more agile, companies have to use a combination of operational and strategic controlling instruments. In the Republic of Croatia, as a post-transition country, companies are more short-term oriented, which is visible in the significant use of operational controlling instruments, and to a lesser extent strategic instruments. In times of pandemic and geopolitical events, the results of the research indicate the need for the strategic orientation of companies through the application of strategic controlling instruments in the practice of Croatian companies with the aim of increasing the efficiency and effectiveness of operations.

controlling ; strategic instruments ; operational instruments ; crisis ; business stabilisation ; business strategy redirection

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