Management Control Systems and Innovation: a levers of control analysis in an innovative company
Journal of Accounting & Organizational Change
ISSN: 1832-5912
Article publication date: 28 August 2021
Issue publication date: 9 August 2022
Abstract
Purpose
Building on the growing body of research that has addressed management control systems and innovation, the purpose of this study is to assess the extent and nature of the use of controls in an innovative setting and how they work together unveiling the relationships and tensions amongst the Simons’ levers.
Design/methodology/approach
This study resorts to an in-depth and single case study in a company that has both a strong orientation to innovation and stable control practices in place. Evidence was collected from 32 interviews, visits to the company and internal documentation.
Findings
At the case company, it was possible to find the presence of controls according to all the levers of control. Likewise, joint effects of controls used according to interactive and beliefs approaches and diagnostic and boundary controls showed a consistent reinforcement that push the organization in a single direction. Signs of some countervailing reinforcement between these pairs were also detected, creating tensions. This in general shows that innovation can be weighed against the necessity of goal achievement taking place within fields in which the company can exploit the effort developed.
Originality/value
This study documents the collective use of controls in a context in which innovation is needed and how the combination of the levers of control with their inner workings and tensions allow the company to have a corporate environment of innovation that is friendly.
Keywords
Acknowledgements
The authors would like to thank the editor, Professor Zahirul Hoque, and the two anonymous reviewers for their helpful comments and suggestions. Also, we gratefully acknowledge comments and suggestions from Robert Scapens, Grazianno Coller, Jonas Oliveira, João Oliveira and Ricardo Barradas, participants at the conference “Researching Management Accounting and Control: Reflections on its impact and implications for the future” held in Groningen, the XVII conference grudis and doctoral colloquium held in Porto and two anonymous reviewers of the 41st annual congress of the European Accounting Association. We are also grateful to interviewees for their time, help and sympathy and the case company to allow the development of this work. Rúben Silva Barros also gratefully acknowledge the financial support of Fundação para a Ciência e Tecnologia under the doctoral grant SFRH/BD/104181/2014. The authors are also grateful for the financial support of this institution under the grant UID/GES/00315/2013 and UIDB/00315/2020.
Citation
Barros, R.S. and Ferreira, A.M.D.S.d.C. (2022), "Management Control Systems and Innovation: a levers of control analysis in an innovative company", Journal of Accounting & Organizational Change, Vol. 18 No. 4, pp. 571-591. https://doi.org/10.1108/JAOC-09-2020-0137
Publisher
:Emerald Publishing Limited
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