<h5>Introduction</h5> In recent years there has been an increased interest in examining the relationships between product innovation and the use of formal management control systems (MCS). 1 The term Management Control Systems (MCS) refers to the set of procedures and processes that managers and other organizational participants use in order to help ensure the achievement of their goals and the goals of their organizations ( Otley & Berry, 1994 ), and it encompasses formal control systems as well as informal personal and social controls ( Chiapello, 1996 ; Otley, 1980 ; Ouchi, 1977 ). Formal MCS consist of purposefully designed, information based and explicit sets of structures, routines, procedures and processes ( Maciarello & Kirby, 1994 ) that help managers ensure that their organization's strategies and plans are carried out or, if conditions warrant, that they are modified ( Merchant, 1998 ; Simons, 1995a ). 1 Understanding how an organization can use its formal control systems to support product innovation has emerged as an important research question ( Shields, 1997 ). A significant body of literature has explored the relationships between formal MCS and product innovation within subunits, taking R&D departments, product development teams and product development projects
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