The Effect of Management Control Systems and Practices on Product Innovation: Literature Review

Abstract

This paper reviews 26 articles dealing with the relationship between management control systems or practices and product innovation. The reviews are classified into three categorizations. These are (a) the types of management control, (b) the design and use mode of management control and (c) the practices of management control. The purposes of this paper are (1) to present the status of the research in this area in terms of variables, research methods, and Key findings. (2) and Identifying research gaps and suggest future researches. The paper indicates an increased research interest in this era during the review period (1990–2017). By analyzing the categorizations, it becomes evident that there are research gaps are noted as follow: (1) previous studies have focused primarily on formal control systems, not on the informal control systems, (2) They fail to Provide understanding of how combinations of controls (the effect of supplements or complements) can be combined to enhance product innovation, (3) reviews does not consider environmental conditions that both influence the use and moderate the effects of controls.