THE ROLES OF RISK MANAGEMENT CULTURE AND
MANAGEMENT CONTROL SYSTEMS IN THE RELATIONSHIP
BETWEEN LEADERSHIP AND ORGANIZATIONAL PERFORMANCE:
A STUDY OF THE AUSTRALIAN SCHOOL SECTOR
A thesis submitted in fulfilment of the requirements for the degree of
Doctor of Philosophy
Zhiyun Gong
BA MCom
School of Accounting
College of Business
RMIT University
March 2017
I
Declaration
I certify that except where due acknowledgement has been made, the work is that of the author
alone; the work has not been submitted previously, in whole or in part, to qualify for any other
academic award; the content of the thesis/project is the result of work which has been carried out
since the official commencement date of the approved research program; any editorial work,
paid or unpaid, carried out by a third party is acknowledged; and, ethics procedures and
guidelines have been followed. I acknowledge the support I have received for my research
through the provision of an Australian Government Research Training Program Scholarship.
Zhiyun Gong
18th March 2017
II
Acknowledgements
I would like to extend my sincere appreciation to the following people, who
have provided invaluable support to me in the long journey of completing this PhD
thesis. It gives me great pleasure to thank them here, and to acknowledge their
input into this project.
First, I would like to express my sincere gratitude to my principal supervisor,
Professor Nava Subramaniam, for her continuous support for my PhD study and her
patience, motivation, and immense knowledge that has guided me in the research area
of management control systems. I benefited greatly from her invaluable advice,
encouragement and friendship, which has accompanied me in every step of the way. I
am also deeply grateful to my associate supervisor, Dr. Gillian Vesty, for her
valuable advice and support during my fieldwork. In particular, our fruitful
discussions helped me clarify my thoughts and refine my arguments.
I would also like to thank Dr. Mihret Dessalegn of Deakin University for
serving on my supervisory panel during the initial stages of the study. Special thanks
also go to Professor Karen Starr who provided me with deep insights and advice on
school sector issues which greatly helped me in conducting this project.
Further, the thesis would not be possible if not for the support of Victorian
Department of Education and Training as well as the school principals and teachers in
the Victorian school sector who so very generously participated in the study. Thank
you for your kind support.
III
I would also like to extend my gratitude to my colleagues at Monash Business
School, Monash University, Dr. Aldonio Ferreira, Professor Ralph Kober, and
Professor Carla Wilkins for their mentoring, encouragement and institutional
support. I gratefully acknowledge the financial support provided by the Faculty of
Business and Law, Deakin University, during the early stages of the study; the School
of Accounting, RMIT University; and the AFAANZ/CAANZ/CPA Australia PhD
Scholarship Committee. I would also like to thank the copy editor for his prompt,
thorough and professional proof-reading services.
This thesis has also benefited from the contribution of the participants from the
following conferences and workshops:
• AFAANZ Doctoral Symposium, Auckland, New Zealand, 2014
• The 8th Colloquium on Qualitative Research Methods in Business and
Accounting, Melbourne, 2015
• CIMA Research Training Workshop, Sydney, 2016
• The La Trobe University Management Accounting Workshop, Melbourne, 2016
• The AFAANZ Conference, Gold Coast, 2016
Lastly, I would like to especially thank my family – my parents, my husband
Michael and my daughter Melody, for their immense patience, love, and support in
this long journey. I would not have been able to achieve what I have achieved without
your understanding and encouragement.
I dedicate this thesis to you all.
Zhiyun Gong
March 2017
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Table of Contents
ACKNOWLEDGEMENTS II
TABLE OF CONTENTS IV
LIST OF FIGURES VIII
LIST OF TABLES IX
LIST OF COMMON ACRONYMS AND ABBREVIATIONS X
ABSTRACT XII
CHAPTER 1: INTRODUCTION 1
1.1 Introduction 1
1.1.1 The Present Study 4
1.2 Background 5
1.2.1 The Australian School Sector 5
1.2.2 Risk Management Ethos in Schools 8
1.3 Research Questions 13
1.4 Brief Overview of the Research Design 20
1.5 Expected Contributions 22
1.6 Overview of Thesis 25
CHAPTER 2: LITERATURE REVIEW 28
2.1 Introduction 28
2.2 Leadership Theory 29
2.2.1 Transactional Theory and Transformational Theory 29
2.2.2 Transactional and Transformational Leadership Styles 32
2.2.3 Leadership Styles and Organizational Performance 34
School Leadership 36
2.3 Organizational Culture 39
2.3.1 Organizational Culture 39
2.3.2 Risk Management Culture as Organizational Culture 42
The Notion of Risk and the ‘Risk Society’ 42
Risk Management Culture 44
Linking Risk Management and Management Control Systems 48
2.4 Management Control Systems (MCS) 49