Ownership, management control diffusion and framing processes: a multiple case study in Private Equity Firms

This paper explores how notions of shareholder value orientation shape management control practice in Private Equity firms. Drawing on the social movement literature and adopting a multiple case study approach, we examine how the influence takes a form of a framing process where ownership has a key role in shaping Value-based Management practice. Particular attention is paid to how ownership fosters a frame alignment, denoting the extent to which particular frames are congruent with those enacted by different types of owners. We show how the shareholderfocused frame promoted by Private Equity challenges, but also complements, extant control practices to address the objective of economic value creation. These findings lead us to reflect on how different owners stimulate diverse shareholder-focused control practices and which roles they play in constraining as well as enabling organizational action.