Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Management control systems and the strategic management of innovation

Management control systems and the strategic management of innovation This paper aims to understand the strategic management of innovation by examining the effect that management control systems (MCS) have on innovation activities during the strategic change process.Design/methodology/approachA case study was carried out at an innovative company as they undertook a strategic change from closed innovation to open innovation. Simons’ levers of control was used to frame the ways in which MCS were designed and used by managers and the effect MCS have on the innovation activities of organization members.FindingsThe findings indicate that while managers designed and used MCS to support a drive toward open innovation, organization members did not change their innovation activities. Instead, the findings show that new MCS enabled improvements to their closed innovation strategy. This led to a decrease in the time taken to develop new products, which resulted in increased customer satisfaction, which contributed to the achievement of organizational goals.Originality/valueBy focusing on the relationship between MCS and innovation activities in the strategic change process, the paper sheds new light on the ability of MCS to change the innovation activities of organization members. Even though the innovation activities at our case company did not change the interactions between the MCS enabled organizational goals to be achieved as they provided the necessary information infrastructure and motivated goal congruence. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Qualitative Research in Accounting & Management Emerald Publishing

Management control systems and the strategic management of innovation

Download PDF
27 pages

Loading next page...
 
/lp/emerald-publishing/management-control-systems-and-the-strategic-management-of-innovation-OzCEbUcZsc
Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1176-6093
eISSN
1176-6093
DOI
10.1108/qram-04-2021-0083
Publisher site
See Article on Publisher Site

Abstract

This paper aims to understand the strategic management of innovation by examining the effect that management control systems (MCS) have on innovation activities during the strategic change process.Design/methodology/approachA case study was carried out at an innovative company as they undertook a strategic change from closed innovation to open innovation. Simons’ levers of control was used to frame the ways in which MCS were designed and used by managers and the effect MCS have on the innovation activities of organization members.FindingsThe findings indicate that while managers designed and used MCS to support a drive toward open innovation, organization members did not change their innovation activities. Instead, the findings show that new MCS enabled improvements to their closed innovation strategy. This led to a decrease in the time taken to develop new products, which resulted in increased customer satisfaction, which contributed to the achievement of organizational goals.Originality/valueBy focusing on the relationship between MCS and innovation activities in the strategic change process, the paper sheds new light on the ability of MCS to change the innovation activities of organization members. Even though the innovation activities at our case company did not change the interactions between the MCS enabled organizational goals to be achieved as they provided the necessary information infrastructure and motivated goal congruence.

Journal

Qualitative Research in Accounting & Management – Emerald Publishing

Published: Oct 21, 2022

Keywords: Management control systems; Open innovation; Strategic change; Innovation activities; Goal congruence; Closed innovation

References

  • The influence of performance measurement on the processual dynamics of strategic change
    Abernethy, M.A.; Dekker, H.C.; Grafton, J.
  • Accounting for flexibility and efficiency: a field study of management control systems in a restaurant chain
    Ahrens, T.; Chapman, C.S.
  • How management control practices enable strategic alignment during the product development process
    Akroyd, C.; Biswas, S.S.N.; Chuang, S.
  • Imprinting founders’ blueprints on management control systems
    Akroyd, C.; Kober, R.
  • The emergence of management controls in an entrepreneurial company
    Akroyd, C.; Kober, R.; Li, D.
  • The roles of management control in a product development setting
    Akroyd, C.; Maguire, W.
  • Bridging management control systems and innovation: the evolution of the research and possible research directions
    Barros, R.S.; Ferreira, A.M.D.S.d.C.
  • Management control systems and innovation: a levers of control analysis in an innovative company
    Barros, R.S.; Ferreira, A.M.D.S.d.C.
  • Enabling open innovation process through interactive methods: scenarios and group decision support systems
    Bergman, J.; Jantunen, A.R.I.; Saksa, J.-M.
  • The choice of interactive control systems under different innovation management modes
    Bisbe, J.; Malagueño, R.
  • The effects of the interactive use of management control systems on product innovation
    Bisbe, J.; Otley, D.
  • The governance of inter-firm co-development projects in an open innovation setting
    Biswas, S.; Akroyd, C.
  • Strategic management of open innovation: a dynamic capabilities perspective
    Bogers, M.; Chesbrough, H.; Heaton, S.; Teece, D.J.
  • Integrative strategic performance measurement systems, strategic alignment of manufacturing, learning and strategic outcomes: an exploratory study
    Chenhall, R.H.
  • The role of management control systems in planned organizational change: an analysis of two organizations
    Chenhall, R.H.; Euske, K.J.
  • Open innovation: a new paradigm for understanding industrial innovation
    Chesbrough, H.; Chesbrough, H.; Vanhaverbeke, W.; West, J.
  • Beyond high tech: early adopters of open innovation in other industries
    Chesbrough, H.; Crowther, A.K.
  • Simons’ levers of control framework: commensuration within and of the framework
    Curtis, E.; Lillis, A.M.; Sweeney, B.
  • An empirical study on the drivers of management control systems' design in new product development
    Davila, T.
  • The promise of management control systems for innovation and strategic change
    Davila, T.; Chapman, C.S.
  • Accounting and organisational cultures: a field study of the emergence of a new organisational reality
    Dent, J.F.
  • A structuration theory perspective on the interplay between strategy and accounting: unpacking social continuity and transformation
    Englund, H.; Gerdin, J.; Burns, J.
  • Accounting and new product development: the importance of interactions within social and technical structures
    Feeney, O.; Pierce, B.
  • Budgetary stewardship, innovation and working culture
    Ferry, L.; Coombs, H.; Eckersley, P.
  • Packages of management control systems, entrepreneurial orientation, and performance in Brazilian startups
    Frare, A.B.; Cruz, A.P.C.d.; Lavarda, C.E.F.; Akroyd, C.
  • Benefits and costs of open innovation: the BeCO framework
    Greco, M.; Grimaldi, M.; Cricelli, L.
  • Interdependence of management control practices for product innovation: the influence of environmental unpredictability
    Henri, J.F.; Wouters, M.
  • Socialization mechanisms and goal congruence
    Kennedy, F.A.; Widener, S.K.
  • The interrelationship between management control mechanisms and strategy
    Kober, R.; Ng, J.; Paul, B.J.
  • Time in strategic change research
    Kunisch, S.; Bartunek, J.M.; Mueller, J.; Huy, Q.N.
  • Perspective: leveraging open innovation through paradox
    Lauritzen, G.D.; Karafyllia, M.
  • Open for innovation: the role of openness in explaining innovation performance among UK manufacturing firms
    Laursen, K.; Salter, A.
  • Cooperation and competition among employees: experimental evidence on the role of management control systems
    Luft, J.
  • Management control systems, cooperation and performance in strategic supply relationships: a survey in the mines
    Mahama, H.
  • Combinatorial knowledge bases: an integrative and dynamic approach to innovation studies
    Manniche, J.; Moodysson, J.; Testa, S.
  • Reversal of strategic change
    Mantere, S.; Schildt, H.A.; Sillince, J.A.
  • Beyond the systems versus package debate
    Merchant, K.A.; Otley, D.
  • Drawing valid meaning from qualitative data: toward a shared craft
    Miles, M.B.; Huberman, A.M.
  • Complementing open innovation in multi‐business firms: practices for promoting knowledge flows across internal units
    Moellers, T.; Visini, C.; Haldimann, M.
  • The role of diagnostic and interactive control uses in innovation
    Müller-Stewens, B.; Widener, S.K.; Möller, K.; Steinmann, J.C.
  • Creating dynamic tensions through a balanced use of management control systems
    Mundy, J.
  • Management accounting systems, top management team heterogeneity and strategic change
    Naranjo-Gil, D.; Hartmann, F.
  • The contingency theory of management accounting and control: 1980–2014
    Otley, D.
  • A conceptual framework for the design of organizational control mechanisms
    Ouchi, W.G.
  • Top managers’ formal and informal control practices in product innovation processes
    Pan Fagerlin, W.; Lövstål, E.
  • Managing invention and innovation
    Roberts, E.B.
  • Researching management accounting practice: the role of case study methods
    Scapens, R.W.
  • How top managers use the entrepreneurial gap to drive strategic change
    Simons, R.; Davila, A.
  • Under the wide umbrella of open innovation
    Stanko, M.; Fisher, G.; Bogers, M.
  • When do firms undertake open, collaborative activities? Introduction to the special section on open innovation and open business models
    Tucci, C.; Chesbrough, H.; Piller, F.; West, J.
  • The interplay of different levers of control: a case study of introducing a new performance measurement system
    Tuomela, T.S.
  • Choosing governance modes for external technology sourcing
    Van de Vrande, V.; Lemmens, C.; Vanhaverbeke, W.
  • Open innovation – The Dutch treat: challenges in thinking in business models
    Van der Meer, H.
  • Challenges of open innovation: the paradox of firm investment in open-source software
    West, J.; Gallagher, S.