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Use of Monte Carlo simulation: an empirical study of German, Austrian and Swiss controlling departments
Publikationstyp
Journal Article
Date Issued
2015-07-29
Sprache
English
Author(s)
Institut
TORE-URI
Journal
Volume
26
Issue
2-3
Start Page
249
End Page
273
Citation
Journal of Management Control 2-3 (26): 249-273 (2015)
Publisher DOI
Scopus ID
Publisher
Springer
This paper addresses current and future aspects of the use of Monte Carlo simulation in controlling departments and examines context as well as company-internal factors that may drive the intensity of its usage. To this end, we conducted an empirical survey that was completed by 445 participants from Germany, Austria and Switzerland. The results suggest a rather low adoption rate of Monte Carlo simulation in controlling, but at the same time, the quality of knowledge concerning Monte Carlo simulation within the companies is much higher. In addition, we identify a strong increase in the use of Monte Carlo simulation very recently, and its use is expected to increase threefold within the next 5 years. Furthermore, regression analyses indicate that the use of Monte Carlo simulation is mainly driven by company-internal factors such as its perceived relevance and years of usage. Contrary to our expectations, context factors such as perceived environmental uncertainty do not explain usage, and only company size and industry sector have significant effects.
Subjects
controlling
Monte Carlo simulation
perceived environmental uncertainty
survey
use
DDC Class
650: Management