The Impact of an Incubation Process on Management Control Systems of Start-Ups

Miguel Angel Gil Robles and Hanna Klarner

Chapter 8 in Business Practices, Growth and Economic Policy in Emerging Markets, 2020, pp 135-153 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Management control systems (MCSs) and business incubators (BIs) are both argued to support start-ups in their survival and growth. This research links these two increasingly relevant topics in literature and aims at answering the research question: How does an incubation process affect MCSs in start-ups? A qualitative and exploratory case study is used to answer the research question. Semi-structured interviews were conducted with three start-ups and the management of the Mexican incubator “TecLean”. The findings of this research suggest that an incubation process influences the development of MCSs in start-ups in at least two ways. First, an incubation process pushes the start-ups toward a non-traditional conceptualization of MCSs to include their stakeholders’ perspective. Second, an incubation process highlights the relevance of MCSs when aiming at obtaining venture capital (VC) and thus increases the start-ups’ awareness and initiative to implement stricter MCSs. This research suggests that practitioners in BIs should teach start-ups consciously on how to design MCSs. This may increase start-ups’ access to VC.

Keywords: Emerging Markets; Developing Countries; International Business; Economic Policy; Economic Development; Business Practices (search for similar items in EconPapers)
JEL-codes: F13 F23 F68 M16 (search for similar items in EconPapers)
Date: 2020
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