Guest editorial

2019

QRAM

Purpose The purpose of this study is to present the evolution of thinking on the role of management control systems (MCSs) in innovation, according to the development of control practices, and to provide a reflection on the achievements of the more recent literature. Design/methodology/approach This paper assesses articles, books and book chapters that have explored MCSs in innovation, together with seminal works on management accounting and control. Findings Moving from the traditional phase where MCSs were seen as detrimental to innovation, the literature has now reached a new consensus that attributes a positive role to control. In this recent phase, it arises from the literature that MCSs in the realm of innovation should embrace a multiplicity of controls; MCSs depend on the magnitude and innovation mode of a company; MCSs evolve over time; and that synergies and tensions are expected to arise. Adding these factors to the inherent complexity of innovation, the assertion is that qualitative approaches should be undertaken to infuse the field with more fine-grained evidence. It is also proposed that this methodological approach be used to address the following points: (1) the use of multiple controls; (2) synergies and tensions; and (3) behavioural aspects of controls in relation with innovation. Originality/value The paper is of value for researchers who have an interest in studying the use of MCSs in innovation and in qualitative research and proposes some areas of research that could be explored.

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

Bridging management control systems and innovation

2019

QRAM

“…These contributions respond to several calls to dig into these matters of the role of control in innovation (e.g., Moll, 2015;Fried, 2017;Major et al, 2018;Baird et al, 2019) and to address this line of research through qualitative approaches that enrich the debate (e.g., Henri, 2006;Barros and Ferreira, 2019), and allow for the capturing of more finelygrained evidence.…”

Section: Discussion and Concluding Remarksmentioning

confidence: 99%

“…Management accounting and control literatures have enquired into and advanced our knowledge on management control systems (MCS) and innovation with several recently published papers (Bedford, 2015; Curtis and Sweeney, 2017; Aaltola, 2018; Healy et al , 2018; Barros and Ferreira, 2019; Bellora-Bienengräber, 2019; Müller-Stewens et al , 2020; Rathnasekara and Gooneratne, 2020). This has allowed considerable knowledge to be accumulated, but there remains the “need to undertake further research into how management accounting and control practice realized by the managerial actors jointly and individually can contribute and relate to innovation” (Major et al , 2018, p. 154). Additionally, as Van der Kolk et al (2020) recognize, the inner workings of combinations of controls are an area quite unexplored and considering that control in innovative settings is an especially complex matter, with various aspects to considerer, much has yet to be understood.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Management Control Systems and Innovation: a levers of control analysis in an innovative company

2021

JAOC

Purpose Building on the growing body of research that has addressed management control systems and innovation, the purpose of this study is to assess the extent and nature of the use of controls in an innovative setting and how they work together unveiling the relationships and tensions amongst the Simons’ levers. Design/methodology/approach This study resorts to an in-depth and single case study in a company that has both a strong orientation to innovation and stable control practices in place. Evidence was collected from 32 interviews, visits to the company and internal documentation. Findings At the case company, it was possible to find the presence of controls according to all the levers of control. Likewise, joint effects of controls used according to interactive and beliefs approaches and diagnostic and boundary controls showed a consistent reinforcement that push the organization in a single direction. Signs of some countervailing reinforcement between these pairs were also detected, creating tensions. This in general shows that innovation can be weighed against the necessity of goal achievement taking place within fields in which the company can exploit the effort developed. Originality/value This study documents the collective use of controls in a context in which innovation is needed and how the combination of the levers of control with their inner workings and tensions allow the company to have a corporate environment of innovation that is friendly.

Management control systems and innovation: a case study grounded in institutional theory

2023

J Manag Control

Drawing on the growing literature that has addressed the role of Management Control Systems in innovation and the literature on institutional theory, this study explores the case of Amorim Cork Composites to analyse how the situated rationalities within the company get reflected in the management control practices in use, and then how these practices are used to communicate and provide guidance when innovation is part of the strategy. The study uses a single case study approach at an innovative company, collecting data from 32 interviews, direct observations, and documentation of the company. Based on that data, this study is able to perceive the existence of a rationality that is constructed around the importance of innovation, which becomes a paramount part of the defined strategy and leaves signs on to the internal control practices of the company. After that, through a mix of strategic objectives, well-defined cascaded process of these objectives, values, mottos, objectives related to that situated rationality within the company, and with the commitment created within the “signing” of objectives contracts, managers are able to communicate strategically and provide guidance to the collaborators, driving them to action that makes them more aware.