Impact of Digital Transformation on the Performance of Management Control Systems

Abstract

The objective of this research is to examine the impact of Digital Transformation (DT) on Management Control Systems (MCS), particularly in the telecommunications sector. DT is fundamentally reshaping industries by dismantling traditional barriers between individuals, organizations, and objects. This profound shift redefines business processes, enhances workforce productivity and creativity, and personalizes customer and citizen experiences. MCS, which are essential for strategic decision-making, performance management, and operational monitoring, are among the domains most affected by this transformation. The rapid evolution of digital technologies challenges conventional management control methods, necessitating their swift adaptation to maintain relevance and effectiveness. In the telecommunications industry—an environment characterized by continuous change— the implementation of robust performance measurement systems leveraging management control tools is crucial. The Algerian telecommunications market, marked by intense competition and an ongoing drive for innovation, underscores the urgency of performance measurement studies. This thesis seeks to contribute to this field by analyzing the effects of DT on MCS through data collected from a questionnaire completed by 70 professionals working in the telecommunications sector