Abstract
Management control systems (MCS) are fundamental to the progress of research and development (R&D) activities. However, misunderstanding the functions of MCS impedes their scientific design. In view of this, we assess the literature on the key mechanisms of MCS in an R&D context according to the contingency and resource-based theories, and propose a framework which effectively demonstrates these mechanisms. The framework divides the progress of R&D into three stages and analyses the effects of control mechanisms on different R&D activities by distinguishing between their different functions. Finally, we verify the rationality of our framework, with a view to improving current MCS design, using a field study. Our work can help organisations to recognise the role of MCS and provides valuable theoretical and empirical evidence to support their R&D activities.
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2 Corresponding author: Yue Wang, PhD, Institute of Accounting and Finance, Shanghai University of Finance and Economics; email: wang.yue@mail.shufe.edu.cn. Fei Pan, PhD, Institute of Accounting and Finance, Shanghai University of Finance and Economics. Lin Zhou, PhD, Henan University of Economics and Law. Chenggong Zhao, Director of Scientific Research Department, XJ Electric Co., Ltd.
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Appendices
Appendix A Reference Sources of the Key Control Mechanisms in R&D Activities
Appendix B Summary of Interview Data Used for Analysis
Appendix C Profiles of Respondents
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Wang, Y., Pan, F., Zhou, L. et al. Research on the Management Control Systems in Different R&D Activities − A Field Study of a Listed Company1 . China Account Financ Rev 17, 1 (2015). https://doi.org/10.7603/s40570-015-0001-2
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DOI: https://doi.org/10.7603/s40570-015-0001-2