Management control systems and innovation: a case study grounded in institutional theory

Rúben Silva Barros () and Ana Maria Dias Simões da Costa Ferreira ()
Additional contact information
Rúben Silva Barros: Instituto Universitário de Lisboa (ISCTE-IUL), Business Research Unit (BRU-IUL)
Ana Maria Dias Simões da Costa Ferreira: Instituto Universitário de Lisboa (ISCTE-IUL), Business Research Unit (BRU-IUL)

Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, 2023, vol. 34, issue 1, No 4, 109-133

Abstract: Abstract Drawing on the growing literature that has addressed the role of Management Control Systems in innovation and the literature on institutional theory, this study explores the case of Amorim Cork Composites to analyse how the situated rationalities within the company get reflected in the management control practices in use, and then how these practices are used to communicate and provide guidance when innovation is part of the strategy. The study uses a single case study approach at an innovative company, collecting data from 32 interviews, direct observations, and documentation of the company. Based on that data, this study is able to perceive the existence of a rationality that is constructed around the importance of innovation, which becomes a paramount part of the defined strategy and leaves signs on to the internal control practices of the company. After that, through a mix of strategic objectives, well-defined cascaded process of these objectives, values, mottos, objectives related to that situated rationality within the company, and with the commitment created within the “signing” of objectives contracts, managers are able to communicate strategically and provide guidance to the collaborators, driving them to action that makes them more aware.

Keywords: Management Control Systems; Innovation; Institutional theory; Balanced scorecard; M41; Accounting (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s00187-023-00351-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jmgtco:v:34:y:2023:i:1:d:10.1007_s00187-023-00351-4

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/187

DOI: 10.1007/s00187-023-00351-4

Access Statistics for this article

Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung is currently edited by Thomas Günther

More articles in Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().