Innovation as part of the management control system

Abstract

The objective of this research is to study the relationship between management control systems and the innovation process, taking into account the model from Simons (1995). The study is descriptive and quantitative and uses survey data that are analysed utilising structural equation modelling. The main contribution of this research is the identification of the influences exerted by the following: external stimuli and dynamic tensions on the direction of innovation strategies, dynamic tensions on the structure of the interactive control system, and the interactive control system on the structure of the diagnostic control system and on innovation intensity. No impact from the catalyst and obstructor elements on innovation process was confirmed. The influence of interactive system on the diagnostic was expected from literature but not confirmed. This find might consider that the efforts to maintain management control systems must be sensitive to the variables treated in the study.