Management Control and Public Value: The Role of Management Accounting and Control Systems in Creating Public Value by Universities of Applied Sciences

Summary Introduction This dissertation examines how Management Accounting and Control Systems (MACS) can support public value creation in Dutch universities of applied sciences (UAS). MACS encompass the processes and tools used for planning, performance measurement, decision-making, and aligning behavior with strategic goals. The study responds to limitations of New Public Management (NPM), which emphasized efficiency and accountability but often led to fragmentation and narrow performance metrics. Public value theory offers an alternative perspective, focusing on societal impact, stakeholder collaboration, and democratic legitimacy. Theoretical framework The research integrates four perspectives. First, public value theory positions public organizations as co-creators of societal outcomes. Second, MACS are viewed as strategic tools that enable alignment and organizational learning. The Levers of Control framework distinguishes belief, boundary, diagnostic, and interactive control systems. Third, Public Value Accounting broadens traditional accounting with social indicators and narrative accountability. Fourth, boundary crossing theory explains how organizations collaborate across institutional boundaries to create value. Public value categories Based on focus groups with stakeholders from six UAS institutions, five key public value domains are identified: educating adaptable professionals and supporting lifelong learning; addressing societal challenges; contributing to regional knowledge ecosystems; fostering social cohesion and equal opportunities; and providing safe learning environments. Although widely recognized, these domains are mainly reported narratively and lack structured performance indicators. Operationalizing public value An analysis of strategic plans and annual reports (2016–2018) from ten UAS institutions reveals a hybrid reporting practice. Strategic documents emphasize societal ambitions, while annual reports still rely largely on traditional output indicators. This misalignment highlights a gap between strategy and execution. Public value is acknowledged but not yet systematically embedded in planning and control cycles, reflecting a broader need for more integrated accountability frameworks. MACS and public value creation Applying the Levers of Control model shows that belief systems and interactive controls play a key role in fostering engagement, learning, and adaptability. Diagnostic controls are primarily used at decentralized levels, such as study programs. However, the balance between control mechanisms is often lacking, leading to misalignment between central strategies and local practices. Interactive and belief-based controls are particularly important for enabling innovation, stakeholder engagement, and adaptive capacity. MACS and boundary crossing The study also explores how MACS facilitate collaboration across organizational and societal boundaries. Using boundary crossing theory, four mechanisms are identified: identification, coordination, reflection, and transformation. These mechanisms are present in practice and are closely linked to control systems. Interactive forms of management, in particular, support cross-boundary learning and enhance organizational adaptability. MACS thus extend beyond internal control and contribute to external collaboration and societal engagement. Conclusion The dissertation demonstrates that MACS are not merely administrative tools but strategic enablers of public value creation. By combining performance measurement with stakeholder dialogue and learning processes, MACS help UAS balance internal accountability with external responsiveness. Especially interactive and belief systems contribute to innovation, agility, and societal impact. Contributions and implications The study contributes by developing an empirically grounded typology of public value in higher education, integrating MACS with public value theory, and linking management control to boundary crossing. Limitations include the regional focus on the Randstad and the limited use of structured indicators. Future research should explore other contexts and further develop measurement approaches. In practice, the findings offer guidance for policymakers, managers, and controllers to better articulate, monitor, and strengthen public value. Embedding MACS in broader societal strategies can enhance both organizational legitimacy and long-term impact.