Exploring the effect of management control systems on dynamic capabilities and sustainability performance: The role of open innovation strategy amidst COVID-19

Abstract

This research delved into the intricate causal relationships between Management Control Systems (MCS), Dynamic Capabilities (DC), Sustainable Performance (SP), and the pivotal Open Innovation Strategy (OIS) within the challenging context of the COVID-19 pandemic. Employing a rigorous statistical analysis and leveraging a partial least squares structural equation modeling (PLS-SEM) approach, the study meticulously examined the structural model and rigorously tested its hypotheses. The data harnessed for this investigation emanated from online surveys administered to executives and managers affiliated with 3-star and higher-rated hotels in southern Thailand, resulting in a sample size of 151 respondents. The outcome of the statistical analysis, conducted at a significance level of 0.01, conspicuously underlined the paramount role played by the Open Innovation Strategy (OIS) in influencing Sustainable Performance (SP), closely trailed by Dynamic Capabilities (DC) and Management Control Systems (MCS), in a distinct order. These statistically significant results unequivocally corroborated the acceptance of all six research hypotheses, which encapsulated the intricate interplay between MCS and DC, SP, and OIS, as well as the intricate relationships between DC, OIS, and SP. The research outcomes paint a compelling picture, underscoring that in the face of crises, the strategic adoption of open innovation strategies, complemented by an effective management control system and dynamic capabilities, empowers businesses to effectively navigate and endure crises while sustaining operational performance.