Management Control Systems and Strategy: A Resource based Perspective. Evidence from Greece

Nikolaos Theriou (), Dimitrios Maditinos and Georgios N. Theriou
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Nikolaos Theriou: Department of Business Administration, Eastern Macedonia and Thrace Institute of Technology, St. Loukas, 654 04, Kavala, Greece
Dimitrios Maditinos: Department of Business Administration, Eastern Macedonia and Thrace Institute of Technology, St. Loukas, 654 04, Kavala, Greece
Georgios N. Theriou: Department of Business Administration, Eastern Macedonia and Thrace Institute of Technology, St. Loukas, 654 04, Kavala, Greece

International Journal of Business and Economic Sciences Applied Research (IJBESAR), 2017, vol. 10, issue 2, 35-47

Abstract: Purpose: The purpose of this paper is to empirically examine from the resource-based perspective, the relationship between the use of management control systems (MCS) and organisational capabilities in the Greek context. Design/Methodology/Approach: The study follows Henri's (2006) methodology and explores the relationships between the diagnostic and interactive uses of performance measurement systems (PMS) and the five capabilities (e.g. market orientation, organisational learning, entrepreneurship, innovativeness and market responsiveness) leading to strategic choice. Structural equation modelling represents the relationships between the variables and data collected from the survey, which was analysed as a statistical tool with AMOS. Findings: Results revealed that diagnostic use of PMS negatively influence only the organisational learning, while the interactive use positively interacts with most of the capabilities. Research limitations/implications: This study can be further extended by incorporating more factors in the proposed model, such as environmental uncertainty, size and organisational culture, and examine their possible effect on the relationship between PMS uses, organisational capabilities and performance. Originality/Value: There is no similar empirical research in the context of Greece.

Keywords: Management Control Systems (MCS); Strategy; Capabilities; Business Performance; Confirmatory Factor Analysis; Structural Equation Modelling (search for similar items in EconPapers)
JEL-codes: M19 M49 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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