Management Control Practices in the Third Sector: A Study of Supporting Foundations Drawing on Actor-Network Theory

Abstract

The third sector has been gaining significant prominence in the global economic scenario, with broad action in education, culture, health, social assistance, and other subject, attracting the attention of the market and academia, especially regarding the professionalization of the sector and the quality of its management. This research aims to understand the use of management control practices in the foundations supporting federal higher education and science and technology institutions (FAP), drawing on Actor-Network Theory (ANT) and Simons's Levers of Control to explore the management control practices used in the network. In addition to participant observation, twenty-one semi-structured interviews were conducted with participants in the FAP's network, selected using the Snowball technique. The data collected was processed and subjected to content analysis. The theoretical-methodological choice of ANT allowed the actors' (both human and non-human) network mapping, identification of relationships and management control practices, and interpretations of the support foundations management dynamics. The findings revealed that the major challenges relate to the costs of services provided and the financing of foundations, the strong influence of laws, standards, and regulatory bodies, and the great difficulty concerning information systems. The study highlighted the importance of alliances between actors in dealing with the dynamic environment that imposes frequent changes in the management of foundations. Together with the information systems, the regulatory environment strongly impacts the management of the foundations, influencing optimization and creation of processes. The research acknowledged the dynamic relationship between foundations and their clients, emphasizing the transformative role of these organizations in society.