Linking uses of management control systems with strategy-performance relationship

Document Type

Conference Proceeding

Publisher

Australian and New Zealand Academy of Management

Faculty

Faculty of Business

School

School of Business and Law

RAS ID

22378

Comments

Kapu Arachchilage, N., & Smith, M. (2012, December). Linking Uses of Management Control Systems with Strategy-Performance Relationship. In Proceedings of the 26th Annual Australian and New Zealand Academy of Management (ANZAM) Conference (p. 1-49). Available here

Abstract

In this study, the moderating effects created by diagnostic use and interactive use of management control systems (MCS) on strategy-performance relationship are examined. The results of the survey-based research support the postulate that these two uses moderate the relationship between business strategy and performance. However, it is found that the moderating effect created by the diagnostic use of MCS is more significant when the cost leadership strategy is used for performance. No evidence is found in favor of Porter’s proposition on mutual exclusiveness of business strategies for better performance. Consequently, the results of this study have important implications for both management practice and the academic literature.

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