From Informal Practices to Operational Vulnerability: A Contingency-Based Documentary Case Analysis of a Small Food Manufacturing Enterprise

This study examines how informal management practices turn into operational vulnerabilities once they are no longer appropriate for a small food manufacturing enterprise due to its growing complexity. The study follows a qualitative documentary case analysis approach with a student generated Service-Learning Malaysia University for Society (SULAM) business advisory report guided by the Contingency Theory. The report is treated as the sole documentary dataset. The information has been gathered from the students' observations and interviews, but the information in the interview transcript, field notes and other primary records has not been analysed separately. Themes were identified through thematic analysis, with four interrelated themes identified: founder dependence and informal supervision, weak inventory and supplier vulnerability, weaknesses in food safety labelling and compliance readiness, and operational inconsistency due to the absence of formal Standard Operating Procedures (SOPs). The documentary evidence also suggests that the enterprise has developed its business activity and expanded beyond the initial home-based operating model through business expansion, equipment enhancements, distribution and seasonal production pressures, and several control practices continue to be informal. The results then suggest a mismatch in control context, not informality per se. Informal controls are suitable for smaller-scale operations, but as production, workforce, sourcing, safety and market demands increase in complexity, they may not be sufficient. The study adds to the field of SME management-control research by incorporating operational, supply-chain, safety, and compliance vulnerabilities as interrelated expressions of control misalignment. Where the evidence is student-generated, SULAM is considered largely as the context in which it was produced, while there is an implicit suggestion that student-generated business reports constitute a valuable source of material for cases when the boundaries of the evidence are made explicit.

Informal Management Practices; Management Control Systems; Operational Vulnerability; Contingency Theory; Food Manufacturing Smes; SULAM

1. Alam, M. K., Thakur, O. A., & Islam, F. T. (2024). Inventory management systems of small and medium enterprises in Bangladesh. Rajagiri Management Journal, 18(1), 8–19. https://doi.org/10.1108/RAMJ-09-2022-0145 [Google Scholar] [Crossref]

2. Bowen, G. A. (2009). Document analysis as a qualitative research method. Qualitative Research Journal, 9(2), 27–40. https://doi.org/10.3316/QRJ0902027 [Google Scholar] [Crossref]

3. Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. https://doi.org/10.1191/1478088706qp063oa [Google Scholar] [Crossref]

4. Burns, T., & Stalker, G. M. (1961). The management of innovation. Tavistock Publications. [Google Scholar] [Crossref]

5. Chenhall, R. H. (2003). Management control systems design within its organizational context: Findings from contingency-based research and directions for the future. Accounting, Organizations and Society, 28(2–3), 127–168. https://doi.org/10.1016/S0361-3682(01)00027-7 [Google Scholar] [Crossref]

6. Churchill, N. C., & Lewis, V. L. (1983). The five stages of small-business growth. Harvard Business Review, 61(3), 30–50. [Google Scholar] [Crossref]

7. Coelho, M., & Menezes, I. (2021). University social responsibility, service learning, and students' personal, professional, and civic education. Frontiers in Psychology, 12, Article 617300. https://doi.org/10.3389/fpsyg.2021.617300 [Google Scholar] [Crossref]

8. Davila, A., & Foster, G. (2005). Management accounting systems adoption decisions: Evidence and performance implications from early-stage/startup companies. The Accounting Review, 80(4), 1039–1068. https://doi.org/10.2308/accr.2005.80.4.1039 [Google Scholar] [Crossref]

9. Dora, M. K., Van Goubergen, D., Kumar, M., Molnar, A., & Gellynck, X. (2014). Application of lean practices in small and medium-sized food enterprises. British Food Journal, 116(1), 125–141. https://doi.org/10.1108/BFJ-05-2012-0107 [Google Scholar] [Crossref]

10. Food and Agriculture Organization of the United Nations & World Health Organization. (2023). General principles of food hygiene (Codex Alimentarius Code of Practice No. CXC 1-1969). Codex Alimentarius Commission. https://doi.org/10.4060/cc6125en [Google Scholar] [Crossref]

11. Garengo, P., Biazzo, S., & Bititci, U. S. (2005). Performance measurement systems in SMEs: A review for a research agenda. International Journal of Management Reviews, 7(1), 25–47. https://doi.org/10.1111/j.1468-2370.2005.00105.x [Google Scholar] [Crossref]

12. Greiner, L. E. (1972). Evolution and revolution as organizations grow. Harvard Business Review, 50(4), 37–46. [Google Scholar] [Crossref]

13. Hasmawati, H., Winarti, W., Jumriani, J., Arfah, M. I. C., & Jafar, J. (2024). The effect of community-based entrepreneurship development programs on improving the economic welfare of communities in rural areas. Celebes Journal of Community Services, 3(2), 10–23. https://doi.org/10.37531/celeb.v3i2.1618 [Google Scholar] [Crossref]

14. International Organization for Standardization. (2018). Food safety management systems - Requirements for any organization in the food chain (ISO Standard No. 22000:2018). https://www.iso.org/standard/65464.html [Google Scholar] [Crossref]

15. Jennings, P., & Beaver, G. (1997). The performance and competitive advantage of small firms: A management perspective. International Small Business Journal, 15(2), 63–75. https://doi.org/10.1177/0266242697152004 [Google Scholar] [Crossref]

16. Lawrence, P. R., & Lorsch, J. W. (1967). Organization and environment: Managing differentiation and integration. Division of Research, Graduate School of Business Administration, Harvard University. [Google Scholar] [Crossref]

17. Lavia López, O., & Hiebl, M. R. W. (2015). Management accounting in small and medium-sized enterprises: Current knowledge and avenues for further research. Journal of Management Accounting Research, 27(1), 81–119. https://doi.org/10.2308/jmar-50915 [Google Scholar] [Crossref]

18. Malmi, T., & Brown, D. A. (2008). Management control systems as a package: Opportunities, challenges and research directions. Management Accounting Research, 19(4), 287–300. https://doi.org/10.1016/j.mar.2008.09.003 [Google Scholar] [Crossref]

19. Mthiyane, Z. Z. F., van der Poll, H. M., & Tshehla, M. F. (2022). A framework for risk management in small medium enterprises in developing countries. Risks, 10(9), Article 173. https://doi.org/10.3390/risks10090173 [Google Scholar] [Crossref]

20. O'Reilly, S., Kumar, A., & Adam, F. (2015). The role of hierarchical production planning in food manufacturing SMEs. International Journal of Operations & Production Management, 35(10), 1362–1385. https://doi.org/10.1108/IJOPM-04-2014-0157 [Google Scholar] [Crossref]

21. Otley, D. T. (1980). The contingency theory of management accounting: Achievement and prognosis. Accounting, Organizations and Society, 5(4), 413–428. https://doi.org/10.1016/0361-3682(80)90040-9 [Google Scholar] [Crossref]

22. Otley, D. (1999). Performance management: A framework for management control systems research. Management Accounting Research, 10(4), 363–382. https://doi.org/10.1006/mare.1999.0115 [Google Scholar] [Crossref]

23. Sucipto, S., Sumbayak, P. W., & Perdani, C. G. (2020). Evaluation of good manufacturing practices (GMP) and sanitation standard operating procedure (SSOP) implementation for supporting sustainable production in bakery SMEs. Turkish Journal of Agriculture - Food Science and Technology, 8(1), 7–12. https://doi.org/10.24925/turjaf.v8i1.7-12.1960 [Google Scholar] [Crossref]

24. Sullivan-Taylor, B., & Branicki, L. (2011). Creating resilient SMEs: Why one size might not fit all. International Journal of Production Research, 49(18), 5565–5579. https://doi.org/10.1080/00207543.2011.563837 [Google Scholar] [Crossref]

25. Tang, C. S. (2006). Perspectives in supply chain risk management. International Journal of Production Economics, 103(2), 451–488. https://doi.org/10.1016/j.ijpe.2005.12.006 [Google Scholar] [Crossref]

26. Trienekens, J., & Zuurbier, P. (2008). Quality and safety standards in the food industry, developments and challenges. International Journal of Production Economics, 113(1), 107–122. https://doi.org/10.1016/j.ijpe.2007.02.050 [Google Scholar] [Crossref]

27. Yin, R. K. (2018). Case study research and applications: Design and methods (6th ed.). SAGE Publications. [Google Scholar] [Crossref]

28. Zainuri, A., & Huda, M. (2023). Empowering cooperative teamwork for community service sustainability: Insights from service learning. Sustainability, 15(5), Article 4551. https://doi.org/10.3390/su15054551 [Google Scholar] [Crossref]

• Assessment of the Role of Artificial Intelligence in Repositioning TVET for Economic Development in Nigeria
• Teachers’ Use of Assure Model Instructional Design on Learners’ Problem Solving Efficacy in Secondary Schools in Bungoma County, Kenya
• “E-Booksan Ang Kaalaman”: Development, Validation, and Utilization of Electronic Book in Academic Performance of Grade 9 Students in Social Studies
• Analyzing EFL University Students’ Academic Speaking Skills Through Self-Recorded Video Presentation
• Major Findings of The Study on Total Quality Management in Teachers’ Education Institutions (TEIs) In Assam – An Evaluative Study