Management control systems and innovation strategies in business-incubated start-ups

Abstract

We respond to recent calls for a better understanding of the effects of management control systems (MCS) in small start-ups. Using a sample of business-incubated start-ups, we examine the performance effects of the alignment between MCS and innovation strategies. Regression analyses show higher performance when financial (non-financial) MCS are associated with an emphasis on exploratory (exploitative) innovation strategies. Overall, this study contributes to understanding the contingent effects of MCS and innovation strategies in business-incubated start-ups, as well as the consequences for their outcome and survival.