A review of quantitative research in management control systems and strategy

This chapter reviews and critiques quantitative research that focuses on the relation between management control systems (MCS) and strategy. This quantitative research typically relies on survey evidence, and to a lesser extent, interviews and archival data. The focus of research up to the late 1990s was on the fit between the design of MCS and strategy. Controls included cost controls, budgetary controls, and performance evaluation and reward systems. These controls are usually related to business strategy. However, some papers studied operational strategies, such as quality, manufacturing flexibility, and product-related strategies. Recently, more complex characterizations have emerged that focus on the role of MCS in influencing strategic change, through interactive controls, and balanced scorecard approaches, which integrate a range of measures to enable strategic outcomes. It is concluded that our knowledge of the relationship between MCS and strategy is still somewhat limited. The chapter finishes with an outline of methodological limitations and areas for future research.