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Recent accounting research has connected the coercive and enabling types of formalisation (C/E) (Adler and Borys, 1996) with the distinction between diagnostic and interactive controls (D/I) proposed by Simons (1995, 2000) to tackle research questions on complex control situations involving both the degree of employee autonomy and patterns of management attention. The diverse conceptual approaches used for connecting C/E and D/I have led to fragmentation in the literature and raise concerns about their conceptual clarity. In this paper, we assess the conceptual clarity of various forms of connection between C/E and D/I. Firstly, we conduct an in-depth content analysis of 59 recent papers, and inductively identify three points of conceptual ambiguity and divergence in the literature (namely, the perspective from which a phenomenon is studied; whether categories capture choices driven by design or by style-of-use; and the properties of control systems). We also observe that the literature proposes various forms of connection (i.e. coexistence, inclusion, and combination approaches). Secondly, we use the three detected points of ambiguity and divergence as assessment criteria, and evaluate the extent to which conceptual clarity is at risk under each form of connection. Based on this assessment, we provide guidelines to enhance the conceptual clarity of the connections between C/E and D/I, propose several research models, and indicate opportunities for future research in this area.

The purpose of this paper is to present the topic of control computers diagnostics. They are part of an unmanned aerial vehicle (UAV) control system implemented in a modified version of MP-2 Czajka aircraft.

The algorithms were designed as a basic version of the diagnostic system. The system is open and will be developed.

First results show that the diagnostic system works properly. The system is easy for implementation and burdens the control computers only insignificantly.

The system presented can detect only computers out of work. In its present version, it cannot detect such errors as improper calculations of control signals. After first in-flight testing, the system will be further developed.

The diagnostic system is implemented in an UAV technology demonstrator.

The designed system is the part of an UAV control system, designed for ground observation. Such technology demonstrator and flying laboratory enable different type of research in the area of aviation.

Simons (1995) identified two main kinds of controls: diagnostic and interactive. Nevertheless he did not study the possibility of the evolution of these concepts from one kind to the other. We have researched the possibility of this evolution and its reasons. We have studied the case of a ceramic company. Before 2000 the control system of this Company was based on large and exhaustive reports that were discussed every month by the board of directors. Simons defined this kind of control as diagnostic. After suffering a crisis in 2000 the board of directors created new reports based on non‐financial indicators. The board of directors monitored these data weekly spending long hours analysing both the outcomes and the questions arising from them. Most of middle managers of the firm were involved in this reporting system. This kind of control is the one defined by Simons as interactive.

The purpose of this paper is to identify the complementariness and tensions in the use of management control systems diagnostically and interactively, using a budgetary control example, drawing empirical evidence from a clustered firm, “Pattern On”, which is engaged in the manufacture of apparels.

This paper uses the qualitative methodology and case study approach. Face-to-face in-depth interviews were carried out as the main source of data collection, supplemented by an analysis of internal documents.

The field data from this study shows that both diagnostic and interactive controls appear in the clusters of PatternOn. However, the extent of use, the way they are perceived by employees, consequences, complementariness and tensions differ among the clusters. It further suggests that interactive and diagnostic controls have their own positive and negative implications on organisational activities. Therefore, rather than ruling one type as superior; what is best depends on the particular organisational circumstances.

This paper is a useful addition to the current body of management accounting literature, particularly to budgeting and to the levers of the control framework and highlights the use of a domain theory in a research study.

It provides insights to practitioners regarding the simultaneous use of controls, diagnostically and interactively, and how any resulting tensions are managed.

Using a budgetary control example, this paper shows how controls are used diagnostically and interactively while emphasising the complementariness and tensions created by such levers. This is important as most prior research has explored diagnostic and interactive use in isolation, while budgetary control, as well as the role of domain theory has not been their focus.

The purpose of this paper is to analyze the effects on quality-related learning resulting from the use of the quality cost information (QCI). Specifically, this paper analyzes to what extent the diagnostic and interactive uses of QCI contribute to improve quality-related learning.

The proposed model was tested using a structural equation modeling procedure with AMOS and the data were collected through a questionnaire survey conducted on a sample of Portuguese certified companies.

The results shed light on expected relationships since the interactive style of use of QCI, unlike the diagnostic style of use, has a positive effect on quality-related learning. However, the diagnostic use of QCI was found to be a predecessor of the interactive use of QCI, in line with previous studies. Finally, diagnostic use of QCI exerts an indirect positive impact on quality-related learning through the interactive use of QCI.

This paper contributes to the body of research on the use of interactive and diagnostic systems, providing evidence that a balance between those systems improves quality-related learning.

The results show that the use of QCI to promote participation, dialogue and involvement of all participants (according to an interactive style of use), and not just to control the accomplishment of predetermined objectives (according to a diagnostic style of use), is a necessary condition for quality-related learning.

Despite the wide-ranging literature focused on the identification, measurement and reporting of QCI, less attention has been paid to how this information is used in the management process. The way in which the use of QCI can contribute to the improvement in quality-related learning is also an unexplored topic in the literature.

The purpose of this paper is to analyze the effect of management accounting and control systems (MACS) on environmental innovation practices and operational performance. Specifically, this study relies on Simons’ levers of control (LOC) framework to investigate how managers implement environmental innovation practices. This paper hypothesizes that a forward-looking use of MACS (i.e. interactive use) triggers the implementation of environmental innovation practices, resulting in higher operational performance. Furthermore, the authors argue that the monitoring role of MACS (i.e. diagnostic use) combined with environmental training improves the effect of environmental innovation practices on operational performance.

Hypotheses are examined through a questionnaire survey. The analyses are based on responses in an empirical study from 89 Brazilian hotels.

Empirical findings from a hierarchical moderated regression analysis support the hypothesized links.

This study contributes to the environmental management and management control literature by providing novel evidence on the roles MACS play in the field of sustainable development. Based on the LOC framework, the authors shed light on the understanding of how managers introduce and monitor environmental innovation practices, as well as also outlining the key effects of environmental training in enabling the novel abilities of managers and employees to better understand environmental data and identify novel potential environmentally friendly solutions in the case of deviations. This paper also adds to Wijethilake et al. (2017), providing new empirical evidence on how firms design, implement and use MACS that capture institutional pressures for sustainability from multiple stakeholders.

An alignment between financial and operational measures is an essential element to capture the lean productivity improvements enabling supply chain sustainability. With the aim of supporting small and medium-sized enterprises (SMEs) in addressing corporate sustainability challenges, this study aims to examine the impact of leanness on supply chain sustainability, and the moderating role of sustainability control systems (SCS) on the relationship between leanness and supply chain sustainability.

Drawing on lean manufacturing and the levers of control framework, survey data was collected from 106 manufacturing SMEs in Sri Lanka. Moderated multiple regression analysis was used to test the proposed hypotheses.

The study finds that lean manufacturing practices, such as just-in-time deliveries, quality management, environmental management and employee involvement show a significant positive impact on supply chain sustainability. As proposed, the interactive use of SCS shows a significant, positive moderating impact on the relationship between employee involvement and social supply chain sustainability. The diagnostic use of SCS negatively moderates the relationships between just-in-time deliveries and economic supply chain sustainability, and environmental management and economic supply chain sustainability. However, both interactive and diagnostic uses of SCS do not show any significant moderating impact between lean manufacturing and environmental supply chain sustainability.

The following limitations should be taken into account in interpreting the results and implications of this study. Firstly, the study refers to supply chain sustainability as environmental, social and economic sustainability. As these concepts represent broader perspectives of sustainability, and no consensus on how to measure has yet been agreed, future studies may focus on other variables that might capture different perspectives of supply chain sustainability. Secondy, future researchers may further extend the role of SCS (including all four control systems – belief, boundary, interactive and diagnostic) in examining the impact of leanness on supply chain sustainability. Thirdly, this study has considered a sample of manufacturing SMEs in the Western province in Sri Lanka. The results should be carefully generalised to other manufacturing organisations in Sri Lanka and beyond. Finally, future studies may also investigate the impact of leanness on supply chain sustainability by using alternative methodologies, such as multiple case studies.

SMEs are more likely to focus on diagnostic control systems with the aim of promoting economic supply chain sustainability. However, the findings reveal that manufacturing SMEs in the developing country context lack strong SCS to enable supply chain sustainability.

A number of studies across a variety of disciplines call for further research investigating the factors that influence performance measurement (PM) systems and practices. Despite management control systems (MCS) comprising performance measurement as one of its elements, the influence of MCS on PM systems and practices has received little attention. This study attempts to address this need by examining the associations between MCS and PM practices through a survey of large Australian organisations, with MCS characterised in terms of Simons’ (1991; 1995) levers of control (LOC) framework and the objects-of-control (OOC) framework (Emmanuel et al., 1990; Merchant and Van der Stede, 2007). We find that MCS approaches and the specific LOC and OOC that these comprise influence both the purpose for which PM systems are used and the selection of KPIs, but has little influence on the use of benchmarking. Also, diagnostic MCS are associated with the design of causally structured PM systems while results-focused MCS are linked with an absence of structure. Adding to the findings are evidence that interactive LOC are not associated with strategic learning, validation and the use of causality in PM systems.

This paper aims to analyze the relationship between the use of management control systems (MCSs) and innovativeness in start-ups pursuing product innovation (PI), business model innovation (BMI) or ambidextrous innovation (both PI and BMI ).

This paper reports on survey data collected at 143 European start-ups using a structured questionnaire sent to a member of the top management team at each firm.

The authors find that the control levers and their interdependencies associated with increased innovativeness significantly differ between the different forms of innovation.

The study provides important guidance for entrepreneurs so that they can effectively support their innovation agenda with the MCSs tailored to their needs.

This research contributes to a growing literature that shows the positive role of MCSs in innovative and entrepreneurial processes. It adds to the understanding of the multifaceted nature of innovation and the crucial importance of BMI and ambidextrous innovation for the success of start-ups.

This paper aims to examine the levers of control (LOC) framework in the context of managing projects. The authors explore the impact of diagnostic systems, interactive systems, beliefs systems and boundary systems on project performance and explore the association between control levers.

Using data gathered from 113 project managers representing 38 organizations, the authors used the partial least squares path modelling algorithm to analyse the data.

The analysis validates the LOC framework in the context of managing projects and reveals the interrelatedness of control systems and their impact on project performance.

The conclusions support the current emphasis on performance reporting and change control and highlight the need to consider the interdependencies between control levers.

This study re-conceptualizes project control by using the LOC framework in the context of managing projects as temporary organizations. This provides a model for investigating and understanding project management control systems that consider the interaction of control mechanisms. Furthermore, the associations between the four control systems and project performance are examined, rather than individual mechanisms in isolation.