Abstract
PurposeThe 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/approachThis paper assesses articles, books and book chapters that have explored MCSs in innovation, together with seminal works on management accounting and control.FindingsMoving 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/valueThe 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.
Highlights
Innovation could be seen as a result of processes that organisations are able to manage, rather than random events that some of them happen to experience at some point in their existence (Davila, 2005; Bisbe and Malagueño, 2015)
It will allow us to develop the analysis following the various time periods and the evolution of the perception of the role of Management Control Systems (MCS) in innovation. This definition assumes that MCS represent processes of information, that could be more or less complex, with more or fewer controls involved. This opens the door to the inclusion of ideas such as: a combination of systems that work together (Malmi and Brown, 2008; Sandelin, 2008; Ferreira and Otley, 2009; Grabner and Moers, 2013); the levers of control framework (Simons, 1995a); performance measurement systems like Balanced Scorecard (Kaplan and Norton, 1992, 1996); budgets, and other systems that can fulfil the principles of operationalisation of the strategic goals from the definition mentioned
Building on the relevance of innovation as a key to organisational success, and the recent importance given in the literature to the role of MCS in innovation, this study has first presented a broad overview of the evolution of the research, and the most recent understandings that have been achieved
Summary
Innovation could be seen as a result of processes that organisations are able to manage, rather than random events that some of them happen to experience at some point in their existence (Davila, 2005; Bisbe and Malagueño, 2015). It resorts to the literature on MCS and innovation This later body of research include both empirical and theoretical works presented in articles, books, and book chapters that explored any aspect of the role of MCS in innovation, or provided important arguments. When looking for these articles, the focus was on journals related to management and accounting. It will allow us to develop the analysis following the various time periods and the evolution of the perception of the role of MCS in innovation This definition assumes that MCS represent processes of information, that could be more or less complex, with more or fewer controls involved. This opens the door to the inclusion of ideas such as: a combination of systems that work together (Malmi and Brown, 2008; Sandelin, 2008; Ferreira and Otley, 2009; Grabner and Moers, 2013); the levers of control framework (Simons, 1995a); performance measurement systems like Balanced Scorecard (Kaplan and Norton, 1992, 1996); budgets, and other systems that can fulfil the principles of operationalisation of the strategic goals from the definition mentioned
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