nach oben

Review of Managerial Science

Erschienen in:

01.07.2016 | Original Paper

The effects of the interactive use of management control systems on process and organizational innovation

verfasst von: Ernesto Lopez-Valeiras, Maria Beatriz Gonzalez-Sanchez, Jacobo Gomez-Conde

Erschienen in: Review of Managerial Science | Ausgabe 3/2016

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

This study examines how the interactive use of management control systems (iMCS) affects process and organizational innovation. Firstly, it is postulated that iMCS directly influences the development of process and organizational innovations. Secondly, we argue in favor of a moderating role of iMCS in the relationship between innovation and financial performance. Most studies of MCS and innovation have focused on new product development. However, process and organizational innovations follow innovation patterns that clearly differ from product innovation. The research model is empirically examined using data collected from a survey of 230 firms. Results from a structural model tested applying Partial Least Squares regression, controlling for size, family ownership, R&D, and product innovation, reveal that iMCS fosters process and organizational innovation. Results also suggest that iMCS could play a moderator role in the relationship between process innovation and financial performance. These findings highlight the role of iMCS in process and organizational innovation, expanding previous literature on Simons’ Levers of Control and innovation. The results are also discussed with regard to their managerial implications.

Vorheriger Artikel Organicity and performance in excellent HRM organizations: the importance of organizational learning capability

Nächster Artikel Overconfidence and risk seeking in credit markets: an experimental game

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Nur mit Berechtigung zugänglich

This structure avoids contravening Luft and Shields’ (2003) position on moderating variables.

The benefits of using MCS rarely have a direct impact on financial performance (Bisbe and Otley 2004; Henri 2006). However, MCS do exercise a “step-by-step” impact through intermediate and organizational factors before actually achieving financial performance.

The agrifood industry is the largest Spanish industrial sector by GDP. It also presents a percentage of innovative companies consistently higher than in the whole of the Spanish economy and similar to that observed in industry in general.

We conducted a systematic literature review through the EBSCO database and searched for documents that use the words “Control systems” or “Management control systems” or “Management accounting systems” or “Performance measurement systems” and “product innovation” in their abstracts. Ten papers were found. We repeated the process with the expressions “process innovation” (two papers were found) and “organizational innovation” (no paper was found) instead of product innovation. Then, we added the term “interactive” and repeated the same process for each type of innovation. This time three papers were found for “product innovation” and no paper was found for “process innovation” and “organizational innovation”.

Firms belonging to National Classification of Economics Activities (CNAE) 10 and 11.

The SABI database contains the economic and financial information on more than 600,000 Spanish and Portuguese firms, and is widely used and accepted for scientific studies (Bisbe and Malagueño 2012).

After deletion of erroneous observations (CNAE not coincident or companies with no activity).

\(e = \sqrt {\frac{{K^{2} xPxQ\left( {N - 1} \right)}}{{n\left( {N - 1} \right)}}}\) where e = sample error; K = value for assigning the confidence level, K = 1.96 for a confidence level of 95 %; P and Q = data confidence values. For a confidence level of 95 % P = Q and they take values of 0.5; N = sample population and n = sample size.

Interactive use of MCS = MAX (Average of Interactive use of Cost Accounting, Average of Interactive use of BSC, Average of Interactive use of Budget System).

f² = (R² interaction model − R² main effects model)/(1 − R² main effects model). Following Chin et al. (2003) and Naranjo-Gil et al. (2008), interaction effect sizes are small if f² = 0.02, medium if f² = 0.12 and large if f² = 0.35.

Aravind D (2012) Learning and innovation in the context of process-focused management practices: the case of an environmental management system. J Eng Technol Manag 29(3):415–433CrossRef

Argyris C, Schön DA (1978) Organizational learning: a theory of action perspective. Addison-Wesley, Amsterdam

Armbruster H, Bikfalvi A, Kinkel S, Lay G (2008) Organizational innovation: the challenge of measuring non-technical innovation in large-scale surveys. Technovation 28:644–657CrossRef

Baer M, Frese M (2003) Innovation is not enough: climates for initiative and psychological safety, process innovations, and firm performance. J Organ Behav 24:45–68CrossRef

Basaglia S, Caporarello L, Magni M, Pennarola F (2009) Individual adoption of convergent mobile phone in Italy. Rev Manag Sci 3(1):1–18CrossRef

Bisbe J, Malagueño R (2009) The choice of interactive control systems under different innovation management modes. Eur Account Rev 18(2):371–405CrossRef

Bisbe J, Malagueño R (2012) Using strategic performance measurement systems for strategy formulation: does it work in dynamic environments? Manag Account Res 23(4):296–311CrossRef

Bisbe J, Otley DT (2004) The effects of the interactive use of management control systems on product innovation. Account Organ Soc 29(8):709–737CrossRef

Bisbe J, Bastita-Foguet J-M, Chenhall RH (2007) Defining management accounting constructs: a methodological note on the risks of conceptual misspecification. Account Organ Soc 32:789–820CrossRef

Bloom N, Van Reenen J (2007) Measuring and explaining management practices across firms and countries. Q J Econ 122(4):1351–1408CrossRef

Bloom N, Van Reenen J (2010) Why do management practices differ across firms and countries? J Econ Perspect 24(1):203–224CrossRef

Bunduchi R, Weisshaar C, Smart AU (2011) Mapping the benefits and costs associated with process innovation: the case of RFID adoption. Technovation 31(9):505–521CrossRef

Camison C, Villar-Lopez A (2014) Organizational innovation as an enabler of technological innovation capabilities and firm performance. J Bus Res 67:2891–2902CrossRef

Capon N, Farley JU, Lehmann DR, Hulbert JM (1992) Profiles of product innovators among large US manufacturers. Manag Sci 38(2):157–169CrossRef

Cardinal L (2001) Technological innovation in the pharmaceutical industry: the use of organizational control in managing research and development. Organ Sci 12(1):19–36CrossRef

Casadesus-Masanell R, Ricart JE (2010) From strategy to business models and onto tactics. Long Range Plan 43(2–3):195–215CrossRef

Chang S-J, Van Witteloostuijn A, Eden L (2010) From the editors: common method variance in international business research. J Int Bus Stud 41(2):178–184CrossRef

Chenhall RH (2003) Management control systems design within its organizational context: findings from contingency-based research and directions for the future. Account Organ Soc 28:127–168CrossRef

Chenhall RH, Langfield-Smith K (1998) The relationship between strategic priorities, management techniques and management accounting: and empirical investigation using a system approach. Account Organ Soc 23(3):243–264CrossRef

Chenhall RH, Kallunki J-P, Silvola H (2011) Exploring the relationships between strategy, innovation, and management control systems: the roles of social networking, organic innovative culture, and formal controls. J Manag Account Res 123(1):99–128CrossRef

Chesbrough H (2007) Business model innovation: it’s not just about technology anymore. Strategy Leadersh 35(6):12–17CrossRef

Chin WW (1998) Issues and opinion on structural equation modelling. Manag Inf Syst Q 22(1):7–16

Chin WW, Marcolin BL, Newsted PR (2003) A partial least squares latent variable modeling approach for measuring interaction effects: results from a Monte Carlo simulation study and voice mail emotion/adoption study. Inf Syst Res 14(2):189–217CrossRef

Daft RL (1978) Essentials of organizations theory and design. South-Western College Publishing, Cincinnati

Damanpour F (1991) Organizational innovation: a meta-analysis of effects of determinants and moderators. Acad Manag J 34:555–590CrossRef

Damanpour F, Evan WM (1984) Organizational innovation and performance: the problem of organizational lag. Adm Sci Q 29:392–409CrossRef

Damanpour F, Gopalakrishnan S (2001) The dynamics of the adoption of product and process innovations in organizations. J Manag Stud 38(1):45–65CrossRef

Damanpour F, Szabat KA, Evan WM (1989) The relationship between types of innovation and organizational performance. J Manag Stud 26(6):587–601CrossRef

Daniel SJ, Reitsperger WD (1992) Management control systems for quality: an empirical comparison of the US and Japanese electronics industries. J Manag Account Res 4:64–78

Davila T (2000) An empirical study on the drivers of management control systems’ design in new product development. Account Organ Soc 25(4–5):383–409CrossRef

Davila T, Epstein MJ, Shelton R (2006) Making innovation work: how to manage it, measure it and profit from it. Prentice Hall, New Jersey

Davila A, Foster G, Li M (2009a) Reasons for management control systems adoption: insights from product development systems choice by early-stage entrepreneurial companies. Account Organ Soc 34(3–4):322–347CrossRef

Davila A, Foster G, Oyon D (2009b) Accounting and control, entrepreneurship and innovation: venturing into new research opportunities. Eur Account Rev 18(2):281–311CrossRef

Dillman DA (2000) Mail and internet surveys: the tailored design method, 2nd edn. Wiley, New York

Dunk AS (2011) Product innovation, budgetary control, and the financial performance of firms. Br Account Rev 43(2):102–111CrossRef

Edquist C (2001) Innovation policy: a systemic approach. Oxford University Press, Oxford

Ettlie JE (1988) Taking charge of manufacturing: how companies are combining technological and organizational innovations to compete. Jossey-Bass, San Francisco

Ettlie JE, Reza EM (1992) Organizational integration and process innovation. Acad Manage J 35(4):795–827CrossRef

Fahy J (2002) A resource-based analysis of sustainable competitive advantage in a global environment. Int Bus Rev 11(1):57–77CrossRef

Fleck J (1994) Learning by trying: the implementation of configurational technology. Res Policy 23(6):637–652CrossRef

Franco-Santos M, Lucianetti L, Bourne M (2012) Contemporary performance measurement systems: a review of their consequences and a framework for research. Manag Account Res 23(1):79–119CrossRef

Ganter A, Hecker A (2013) Deciphering antecedents of organizational innovation. J Bus Res 66(5):575–584CrossRef

Ganter A, Hecker A (2014) Configurational paths to organizational innovation: qualitative comparative analyses of antecedents and contingencies. J Bus Res 67:1285–1292CrossRef

Gomez-Conde J, Lopez-Valeiras E, Ripoll-Feliu V, Gonzalez-Sanchez MB (2013) Management control systems and ISO certification as resources to enhance internationalization and their effect on organizational performance. Agribusiness 29(3):392–405CrossRef

Gopalakrishnan S, Bierly P, Kessler EH (1999) A reexamination of product and process innovations using a knowledge-based view. J High Technol Manag Res 10(1):147–166CrossRef

Govindarajan VA (1988) Contingency approach to strategy implementation at the business-unit level: integrating administrative mechanisms with strategy. Acad Manag J 31(4):828–853CrossRef

Hall M (2008) The effect of comprehensive performance measurement systems on role clarity, psychological empowerment and managerial performance. Account Org Soc 33(2–3):141–163CrossRef

Harman HH (1967) Modern factor analysis. University of Chicago Press, Chicago

Hashem G, Tann J (2007) The adoption of ISO 9000 standards within the Egyptian context: a diffusion of innovation approach. Total Qual Manag Bus 18(6):631–652CrossRef

Helm R, Mark A (2012) Analysis and evaluation of moderator effects in regression models: state of art, alternatives and empirical example. Rev Manag Sci 6(4):307–332CrossRef

Henri JF (2006) Management control systems and strategy: a resource-based perspective. Account Organ Soc 31(6):529–558CrossRef

Hervas-Oliver JL, Sempere-Ripoll F (2014) Disentangling the influence of technological process and product innovations. J Bus Res. doi:10.1016/j.jbusres.2014.04.010

Hervas-Oliver JL, Sempere-Ripoll F, Boronat-Moll C (2014) Process innovation strategy in SMEs, organizational innovation and performance: a misleading debate? Small Bus Econ. doi:10.1007/s11187-014-9567-3

Ittner CD, Larcker DF, Randall T (2003) Performance implications of strategic performance measurement in financial services firms. Account Organ Soc 28(7–8):715–741CrossRef

Klomp L, Van Leeuwen G (2001) Linking innovation and firm performance: a new approach. Int J Econ Bus 8(3):343–364CrossRef

Kraus S, Pohjola M, Koponen A (2012) Innovation in family firms: an empirical analysis linking organizational and managerial innovation to corporate success. Rev Manag Sci 6(3):265–286CrossRef

Laitinen EK (2001) Management accounting change in small technology companies: towards a mathematical model of the technology firm. Manag Account Res 12(4):507–541CrossRef

Lin LH (2009) Effects of national culture on process management and technological innovation. Total Qual Manag Bus 20(12):1287–1301CrossRef

Llach J, Castro R, Bikfalvi A, Marimon F (2012) The relationship between environmental management systems and organizational innovations. Hum Factor Ergon Manuf 22(4):307–316CrossRef

Luft J, Shields MD (2003) Mapping management accounting: graphics and guidelines for theory-consistent empirical research. Account Organ Soc 28(2–3):169–249CrossRef

Malmi T, Brown D (2008) Management control systems as a package—Opportunities, challenges and research directions. Manag Account Res 19:287–300CrossRef

McGill ME, Slocum JW Jr, Lei D (1992) Management practices in learning organizations. Organ Dyn 21(1):5–17CrossRef

Merchant KA, Otley DT (2006) A review of the literature on control and accountability. In: Chapman CS, Hopwood AG, Shields MD (eds) Handbook of management accounting research. Elsevier, Amsterdam, pp 785–802CrossRef

Moll MJ, Birkinshaw J (2009) The sources of management innovation: when firms introduce new management practices. J Bus Res 62:1269–1280CrossRef

Mueller J (2012) The interactive relationship of corporate culture and knowledge management: a review. Rev Manag Sci 6(2):183–201CrossRef

Murat Ar I, Baki B (2011) Antecedents and performance impacts of product versus process innovation: empirical evidence from SMEs located in Turkish science and technology parks. Eur J Innov Manag 14(2):172–206CrossRef

Naranjo-Gil D, Hartmann F (2007) Management accounting systems, top management team heterogeneity and strategic change. Account Organ Soc 32(7–8):735–756CrossRef

Naranjo-Gil D, Hartmann F, Maas VS (2008) Top management team heterogeneity, strategic change and operational performance. Br J Manage 19:222–234CrossRef

Nieto M (2007) The importance of diverse collaborative networks for the novelty of product innovation. Technovation 27(6/7):367–377CrossRef

Nieto MJ, Santamaría L (2010) Technological collaboration: bridging the innovation gap between small and large firms. J Small Bus Manag 48(1):44–69CrossRef

O’Sullivan D, Dooley L (2009) Applying innovation. SAGE Publications Inc, Thousand Oaks

OECD, Eurostat (2005) Oslo manual: guidelines for collecting and interpreting innovation data, 3rd edn. OECD, ParisCrossRef

Podsakoff PM, MacKenzie SB, Lee J-Y, Podsakoff NP (2003) Common method biases in behavioral research: a critical review of the literature and recommended remedies. J Appl Psychol 88(5):879–903CrossRef

Prajogo DI, Ahmed PK (2006) Relationships between innovation stimulus, innovation capacity, and innovation performance. R D Manage 36(5):499–515CrossRef

Prajogo DI, Sohal AS (2001) TQM and innovation: a literature review and research framework. Technovation 21:539–558CrossRef

Rosenberg N (1982) Inside the black box: technology and economics. Cambridge University Press, Cambridge

Sainio LM, Ritala P, Hurmelinna-Laukkanen P (2012) Constituents of radical innovation-exploring the role of strategic orientations and market uncertainty. Technovation 32(11):591–599CrossRef

Sim KL, Killough LN (1998) The performance effects of complementarities between manufacturing practices and management accounting systems. J Manag Account Res 10:325–346

Simonetti R, Archibugi D, Evangelista R (1995) Product and process innovations: how are they defined? How are they quantified? Scientometrics 32:77–89CrossRef

Simons R (1991) Strategic orientation and top management attention to control systems. Strateg Manage J 12:49–62CrossRef

Simons R (1995) Levers of control: how managers use innovative control systems to drive strategic renewal. Harvard Business School Press, Boston

Simons R (2000) Performance measurement and control systems for implementing strategy. Prentice Hall, Upper Saddle River

Stadler C (2011) Process innovation and integration in process-oriented settings: the case of the oil industry. J Prod Innov Manag 28(1):44–62CrossRef

Su S, Baird K, Schoch H (2014) The moderating effect of organizational life cycle stages on the association between the interactive and diagnostic approaches to using controls with organizational performance. Manag Account Res. doi:10.1016/j.mar.2014.09.001

Tang J, Pee LG, Iijima J (2013) Investigating the effects of business process orientation on organizational innovation performance. Inf Manag 50(8):650–660CrossRef

Utterback JM, Abernathy WJ (1975) A dynamic model of process and product innovation. Omega 3(6):639–656CrossRef

Verhees FJHM, Meulenberg MTG (2004) Market orientation, innovativeness, product innovation, and performance in small firms. J Small Bus Manag 42(2):134–154CrossRef

Verhees FJHM, Meulenberg MTG, Penning JME (2010) Performance expectations of small firms considering radical product innovation. J Bus Res 63(7):772–777CrossRef

Widener SK (2007) An empirical analysis of the levers of control framework. Account Organ Soc 31(3):405–431

Wolfe RA (1994) Organizational innovation: review, critique and suggested research directions. J Manag Stud 31(3):405–431CrossRef

Ylinen M, Gullkvist B (2012) The effects of tolerance for ambiguity and task uncertainty on the balanced and combined use of project controls. Eur Account Rev 21(2):395–415CrossRef

Ylinen M, Gullkvist B (2014) The effects of organic and mechanistic control in exploratory and exploitative innovations. Manag Account Res 25(1):93–112CrossRef

Titel: The effects of the interactive use of management control systems on process and organizational innovation
verfasst von: Ernesto Lopez-Valeiras
Maria Beatriz Gonzalez-Sanchez
Jacobo Gomez-Conde
Publikationsdatum: 01.07.2016
Verlag: Springer Berlin Heidelberg
Erschienen in: Review of Managerial Science / Ausgabe 3/2016
Print ISSN: 1863-6683
Elektronische ISSN: 1863-6691
DOI: https://doi.org/10.1007/s11846-015-0165-9

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 3/2016

The impact of venture capital on investee companies: evidence from Spain

Organicity and performance in excellent HRM organizations: the importance of organizational learning capability

Overconfidence and risk seeking in credit markets: an experimental game

The importance of key celebrity characteristics for customer segmentation by age and gender: Does beauty matter in professional football?

Servant leadership, employer brand perception, trust in leaders and turnover intentions: a sequential mediation model

Political connections, gender diversity and compensation policy

Premium Partner