The Evolving Role Of The Financial Controller In The Indian Manufacturing Sector: From Accounting Steward To Strategic Business Partner

Abstract

The present study examines the evolving role of the financial controller in the Indian manufacturing sector, focusing on the transition from a traditional accounting steward to a strategic business partner. Using a mixed-method research design combining quantitative and qualitative analyses, the study collected data from 168 financial controllers and finance executives representing medium and large manufacturing firms across major industrial hubs in India. The research explored six key dimensions; technological integration, strategic decision involvement, leadership support, regulatory compliance, skill development, and organizational size to evaluate their impact on the Role Transformation Index (RTI). Statistical tools such as descriptive analysis, multiple regression, correlation, and Structural Equation Modeling (SEM) were employed to assess relationships among variables. The findings revealed that technological integration (β = 0.342) and strategic decision involvement (β = 0.298) are the most significant predictors of role transformation, highlighting the growing importance of digital technologies and strategic financial participation. Leadership support and skill development further enhance this evolution by fostering innovation, cross-functional collaboration, and managerial adaptability. The SEM results confirmed a strong model fit (CFI = 0.958, RMSEA = 0.041), validating the multidimensional nature of the financial controller’s strategic role. Overall, the study concludes that financial controllers in Indian manufacturing are increasingly positioned as strategic partners driving data-driven decisions, operational efficiency, and sustainable business performance.