Financial Management as a Socio-Cybernetic Control System: a Qualitative Study of Feedback, Adaptation and Sensemaking

Authors

  • Aceng Abdul Hamid Universitas pamulang

DOI:

https://doi.org/10.32493/eaj.v9i2.y2026.p134-142

Keywords:

Financial Control, Cybernetics, Sensemaking, Adaptive Control, Feedback

Abstract

This study reconceptualizes financial management as a socio-cybernetic control system embedded within organizational processes of feedback, adaptation, and sensemaking. Existing financial management literature has predominantly emphasized rational, static, and optimization-based models, which are increasingly insufficient to explain decision-making under conditions of uncertainty and organizational complexity. This research adopts a qualitative multiple case study approach, using semi-structured interviews, internal financial documents, and observational data to explore how financial control operates in practice. The findings reveal that financial management functions as a recursive and adaptive system in which financial information is continuously interpreted, negotiated, and reconfigured through feedback loops and organizational interactions. Based on these findings, this study develops a novel framework Socio-Cybernetic Financial Control (SCFC) which integrates feedback mechanisms, adaptive control processes, and behavioral mediation into a unified model. The framework highlights that financial control is not merely a technical function but a socially embedded process shaped by interpretation, power dynamics, and contextual influences. This research contributes to the literature by extending management control and financial management theories through a dynamic, systems-based, and interpretive perspective, while also offering practical insights for designing adaptive and feedback-driven financial systems in complex organizational environments.

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Additional Files

Published

2026-05-09

Issue

Vol. 9 No. 2 (2026): EAJ (Economics and Accounting Journal)

Section

Articles

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Copyright (c) 2026 Aceng Abdul Hamid

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