Management control systems and the strategic management of innovation (2022)
Purpose. 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/approach. A 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.
Findings. The 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/value. By 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.
CitationBiswas, S.S.N. and Akroyd, C. (2022), "Management control systems and the strategic management of innovation", Qualitative Research in Accounting & Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/QRAM-04-2021-0083
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KeywordsManagement control systems; Strategic change; Open innovation; Closed innovation; Innovation activities; Goal congruence
ANZSRC Fields of Research35 - Commerce, management, tourism and services::3507 - Strategy, management and organisational behaviour::350705 - Innovation management
35 - Commerce, management, tourism and services::3501 - Accounting, auditing and accountability
RightsCreative Commons Attribution Non-commercial International Licence 4.0 (CC BY-NC 4.0)
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