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Effective integration of management control systems for competing in global industries

Shogo Kimura (Shogo Kimura is Associate Professor, School of Life Studies, Department of Social Sciences, Sugiyama University, Japan.)
Panos Mourdoukoutas (Panos Mourdoukoutas is Professor of Economics, Department of Economics, Long Island University, USA.)

European Business Review

ISSN: 0955-534X

Article publication date: 1 February 2000



Extending Simon’s (1990) work, this paper proposes an effective management control system that allows companies to integrate different management control systems in order to improve operational effectiveness, employee creativity, and company competitiveness. Reviews conventional and modern competitive strategies and discusses both positive and negative effects of management control systems. Argues that to be effective, diagnostic management systems must be supplemented by boundary control systems, interactive control systems, and belief systems. Effective integration of the four different management control systems, it is argued, is dependent on companies applying them in a way that maximises operational effectiveness without limiting employee creativity. The importance of starting the design of a management control system with the specification of a system of beliefs which defines the company’s values and direction is highlighted.



Kimura, S. and Mourdoukoutas, P. (2000), "Effective integration of management control systems for competing in global industries", European Business Review, Vol. 12 No. 1, pp. 41-45.




Copyright © 2000, MCB UP Limited

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