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THE IMPACT OF MANAGEMENT CONTROL SYSTEMS (MCS) ON

ORGANIZATIONS PERFORMANCE A LITERATURE REVIEW

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 THE IMPACT OF MANAGEMENT CONTROL SYSTEMS (MCS) ON
ORGANIZATIONS PERFORMANCE A LITERATURE REVIEW
Adnan A. Alkhafaji
Department of accounting, College of Administration and Economics, Kufa
University, Iraq
Hassnain Raghib Talab
PHD candidate at school of business, University Utara Malaysia, 06010UUM,
Sintok, Malaysia
Lecture, Accounting Department, College of Administration and Economics, Kufa
University, Iraq
Hakeem Hammood Flayyih
Department of Banking and finance, College of Administration and Economics,
University of Baghdad, Iraq
Noor Abbas Hussein
Master candidate at school of business, University Utara Malaysia, 06010UUM,
Sintok, Malaysia

2017/1/25:‫حاسيخ انخقذيى‬
2017/4/6:‫حاسيخ انقبٕل‬
ABSTRACT
The impact of management control systems (MCS) on organizations
performance empirical research has been the subject of numerous studies during
the past decade in developed and emerging economies. In the contemporary
competitive, complex and changing global business environment, firms are being
challenged to adopt business models that enable them to address the strategic
uncertainties and risks they face in their business environments. The main issue
of this study is that management accounting researchers argue that one of the
ways firms can continually rejuvenate themselves to survive and succeed in these
complex and uncertain environments is to understand the role of management
control systems in Formulating a business strategy in management control
systems that yields a sustainable competitive advantage which in turn lead to
enhance organizations performance. The purpose of this study is attempting to
wading in the literature review related to The impact of management control
systems on organizations performance based on 10 articles published in a wide
variety of journals.
Discuss some methodological issues related to stage in the organizational life cycle
and, finally, review the main results related to this topic and provide suggestions for
future research Literatures indicate several factors that could possibly influence
management control systems and organizations performance. It is worth highlighting
the numerous factors as it is possible to conduct the proper orientation of influence of
management control systems on performance.
Key Words: Management control systems (MCS), Organizations
Performance, a literature review.
‫جملة العلوم‬
‫االقتصادية واإلدارية‬
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51 -5 ‫الصفحات‬
 THE IMPACT OF MANAGEMENT CONTROL SYSTEMS(MCS) ON
ORGANIZATIONS PERFORMANCE A LITERATURE REVIEW

1.0 INTRODUCTION
management control system as define by Anthony 1965 (citation) as the
process by which managers ensure that resources are obtained and used
effectively and efficiently in the accomplishment of the organization’s objectives.
The above definition constrained subsequent scholars not only to foresee
Management Control System as encircling the mostly accounting-based pedals of
planning examination of activities, as well as measuring concerted effort and
integrative instrument, it can also serve synthetically distinct management
control from operational control and strategic control.(why there is. Include
sources or reorganized sentence). However, Management Control System has
also been defined as practices for persuading behavior (Flamholtz, Das, & Tsui,
1985) Over the past twenty years there has been a growing interest in the
relationship between management control systems (MCS) and strategy which
leads to enhance organizational performance. Much of this research rests on the
premise that MCS should be tailored explicitly to support the strategy of the
business to enhance competitive advantage and encourage superior performance
(Dent, 1990). There is evidence that high organizational performance may result
from a matching of an organization’s environment, strategy, and internal
structures and systems (Govindarajan, 1988). MCS encompasses internal
structures and systems.
Organizational performance in almost all category of industry has to do
with objective fulfillment, relative competitive performance, Return on Assets
(ROA), Return on Sale (ROS). However, the above stated dependent variables
can only be achieved by effective deployment of good independent variable such
as differentiation and cost leadership, which will be part of the organizational
strategy. In a nutshell organization performance largely depends on the good
implementation of company’s strategy (Hoorn & Hoorn, 2011).
The main issue of this study is that management accounting researchers
argue that one of the ways firms can continually rejuvenate themselves to survive
and succeed in these complex and uncertain environments is to understand the
role of management control systems (MCS) in Formulating a business strategy
that yields a sustainable competitive advantage which in turn lead to enhance
firm performance (Simons, 2000).
Basically, the purpose of MCS is to provide information that is useful for
managerial decision-making, planning, monitoring and evaluation of
organizational activities to alter employee behavior (Merchant & Otley, 2007).
MCS also provides strategic direction to the innovative efforts of firms, and the
efficiencies they produce can free up resources for innovative activities
(Marginson, 2002). Strategy and accounting researchers, therefore, contend that
MCS is critical in helping top managers formulate strategies, specify the
operational actions required to implement these MCS strategies, clarify mutual
expectations, identify priorities for operational improvements, and set targets
that may influence current and subsequent performance (Simons, 2000).

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 THE IMPACT OF MANAGEMENT CONTROL SYSTEMS(MCS) ON
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The purpose of this study is attempting to carry out the literature review on
the influence of MCS, business strategy, on organization performance based on
10 articles published in a wide variety of journals.
2.0 MANAGEMENT CONTROL SYSTEMS (MCS)
The literature review found several definitions of Management Control
Systems (MCS). According to (Henri, 2006), MCS are defined as formalized
procedures and systems that use information to maintain or alter patterns in an
organizational activity. This definition includes planning systems, reporting
systems, and monitoring procedures that are based on information use. Akroyd,
& Maguire, (2011) were used MCS concept (citation and sentences) which was
developed by Anthony (1965) as the process by which management ensures that
resources are obtained and used effectively and efficiently in the accomplishment
of the organization’s objectives. However, Bisbe, & Otley, (2004) have focused on
MCS definition by Simons (1995) refered to management control systems as the
formal, information-based routines and procedures managers use to maintain or
alter patterns in organizational activities. Other researchers (Valeiras,Sanchez &
Conde (2015) used Chenhall (2003) study, which indicated to MCS consist of
systematic use of management accounting to achieve some goals and other
controls such as personal and clan controls.
MCS have been categorized in different ways in the literature. Some of
these categorizations are formal and informal controls, action and results
controls, tight and loose controls, and financial and non-financial controls (see
for instance; Kald et al., 2000; Langfield- Smith, 1997; Simons, 1991). Thus, it
has been argued that to make MCS more relevant in today's competitive
environment there is the need to go beyond financial analysis and to include
nonfinancial analysis (Chenhall, 2003; Nyamori, Perera, & Lawrence, 2001).
Simons's (2005) classification of controls into diagnostic and interactive provides
a useful reference for understanding the distinction between financial and non-
financial MCS. Diagnostic controls tend to be backward and inward-looking and
can be associated with financial MCS while interactive controls tend to be
forward and outward-looking and can be associated with nonfinancial MCS.
Financial and non-financial MCS are both important when it comes to
strategy development (see for instance, Bhimani & Langfield-Smith, 2007). May
be better combine with the above paragraph. In this review, we found various
definitions of business strategy, and most of selected papers have defined
business strategy is concerned with how a business achieves competitive
advantage and it has been suggested that the MCS
should be tailored explicitly to support the strategy of the business to lead
to superior performance, for instance Henri, (2006); Acquaah, (2013).

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3.0 ORGANIZATION PERFORMANCE

Performance refers to the results of activities of an organization or
investment over a given period of time. The literature review has found that the
effect of management control systems upon organization performance is difficult
to predict. If management control systems supply information relevant for
coordination and learning, then a positive relationship between performance and
the use of management control systems is expected. Some evidence in the
performance field exists pointing in this direction [, for instance Akroyd, &
Maguire, (2011); Bisbe, & Otley, (2004); Davila (2003).
This research paper presents a review of the impact of management control
system on organization’s performance, research published in academic research
journals in various years. The following online journal databases were searched
to provide a comprehensive bibliography of the academic literature on the
impact of management control system on organization’s performance:
 Emerald Fulltext
 Google Scholar;
 ACM Digital library;
 Science Direct.
In this review, data sources and articles were selected using the above
online databases, the literature search was based on the keyword descriptor, The
impact of management control system on organization’s performance for the
selected databases, the databases were queried for the keywords in the title,
abstract and the keyword list. This search originally produced approximately 10
research papers.
4.0 FINDING
This section presents the results of the literature review. Under this section,
firstly, it attempts to highlight the similar common characteristics of the existing
papers. Then secondly, providing the entire discussion in terms of the findings of
these 10 selected studies.
4.1 Common Attributes of the Selected Papers
This section presents the publication trend, investigated industries, number
of countries analyzed and statistical approach adopted in the reviewed articles.
4.1.1 Distribution of articles by journal
Table 1 shows the categorization of 10 articles as per journals, and time-period
and the number of articles published during this time span. In all, 7 journals
have published the selected papers in the area of MCS and organizational
performance. The majority of the articles has been published in Accounting,
Organizations and Society journal (4), and the rest articles from different
journals.

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Table 1: Distribution of articles in journals and year

No Year Journal
1 2015 Review of Managerial Science
International Journal of Trade, Economics and Finance,
2 2013
Journal of Family Business Strategy
1 2012 Performance Measurement and Management Control
1 2011 Qualitative Research in Accounting & Management
1 2010 Accounting, Organizations and Society
1 2006 Accounting, Organizations and Society
1 2005 Management Accounting Research
1 2004 Accounting, Organizations and Society
1 2000 Accounting, Organizations and Society
10 Total
4.1.2 Distribution of articles by industries
The industry wise analysis of research papers shows that the articles were
spread over 4 industries as depicted in Figure 1. This figure also indicates that
manufacturing industry, which was examined in 6 articles of the selected articles,
for instance, (Henri, (2006); Henri, & Journeault, (2010); Bisbe, & Otley, (2004)
and other. While the rest of industries, namely, Business, Service, and primary,
manufacturing and service industries (Florez & et al., 2012), which examined in
separate articles.
Figure 1: Distribution of articles by industries

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 THE IMPACT OF MANAGEMENT CONTROL SYSTEMS(MCS) ON
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4.3 Distribution of articles by key informant

The distribution of articles according to the key information, shown in figure 2,
roughly (40 percent of the papers or 4 articles out of 10) have collected data from
employees, as a key informant. However, 20% or 2 out of the total selected
papers focused on managers, also top management 20%. And lastly, 10% (one
paper out of the total) have used CEO and financial controller as their
respondents.
Figure 2: Distribution of articles by Key informant

4.1. 4 Distribution of articles by countries

The country wise analysis of research papers reveals that the selected
articles for review cover 6 countries. The maximum articles examined industries
in two countries, namely, Spain and Canada. In total, 3 articles studied
industries in Spain followed by 2 articles each for Canada. The figure also
depicts that the research in this area is stretching across various other countries
as well.

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ORGANIZATIONS PERFORMANCE A LITERATURE REVIEW

Figure 3: Distribution of articles by country

Countries
3.5

2.5

1.5 Countries

0.5

0
Spain Canada Australia Malaysia Portugal Ghana

4.1.5 Distribution of articles by research approach and data collection method

Most of the selected papers have used quantitative research design, and
utilized questionnaire instrument for gathering data from various key
informants as we discussed in the previous section.
5.0 Discussion
The finding comprises an analysis of the selected research that examines
the relationship between specific aspects of MCS, and firm’s performance.
(Akroyd, & Maguire, 2011) have shown that in a product development setting
both the goal-congruence and uncertainty reduction roles of management
control are important. With a view to understanding the roles of management
control, they observed how organizational members enacted management
control in practice, including the three elements of management control within
their case organization – input control, process control and output control. This
supports finding that project managers (equivalent to functional managers in the
current study) concentrate on activities related to reducing uncertainty during
product design. However, their observations show that activities related to
uncertainty reduction were prevalent during all stages. They found that input
control related to the presence of members of each of the three hierarchal
communities (executive managers, functional managers and functional
specialists) during activities seemed to have a strong influence on the role of
management control during product development as each focused on different
organizational issues.

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Florez et al (2012) in their study of control system of inter-organizational

efficiency: An Analysis of export performance tried to examining the role that
Management Control Systems (MCS) plays in exporting firms’ exporting
capabilities and resources to optimize export performance. The methodology
used in this study were to utilize empirical data from Spanish exports, an initial
analysis of export efficiency was performed based on DEA and segmentation
techniques. From efficiency scores, they tasted causal relationship between MCS
design and the optimization of resources and capabilities when performing
export activities. Florez et al (2012) found as a final conclusion of their study that
any type of control system was found to have a positive influence in export
performance, but only social control establishes a difference in terms of
efficiency. The results show that strong social controls increase firms’ efficiencies
when managing export channels, allowing firms to achieve outputs superior to
competitors with similar resources and capabilities. In addition, an efficiency
‘lifecycle’ was identified for relationships between exporters and intermediaries.
A pro-cyclical effect was found among MSc design, use and export efficiency;
intense MCS were established in the first stage of a relationship but were relaxed
after a certain level of efficiency was achieved, leading to a reduction of
efficiency in the long term that compromised the continuity of relationships.
Another study by Auzair & Smith, (2005), this study draws on prior
research and uses a contingency approach to identify variables that are relevant
to the design of MCS in service organizations. The theoretical framework of this
study combined literature from various perspectives, including areas that have
received vast attention in MCS studies, namely, business strategy, and areas that
have received scant attention, namely, service process type and organizational
life cycle. To some extent, findings of the current study reconfirm prior studies.
However, this study also offers several new insights into the design of MCS in
service organizations. Prior research provides only fragmented evidence on the
nature of the relationships between the selected variables, and in some
circumstances, where appropriate, evidence from the manufacturing sector was
adopted to justify specific relationships. Considering the exploratory nature of
this study, this study began by testing the direct relationships between the
contingent variables of service process type, business strategy and life cycle
stage, and MCS.
Performance measurement system (PMS) is one of the main functions in
management roles and reflects the strategic goals of firms. PMS particularly
support the management control system (MCS) to manage increasing
complexity. (Jamil & Mohammed, 2013)

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Jamil & Mohammed (2013) in their study The Effects of Management

Control System on Performance Measurement System at Small Medium Hotel in
Malaysia investigated the role played by the MCS in the PMS design in the
context of the Malaysian SMEs hotels. This study employs contingency theory
and using four Simons’ levers of control as intervening variable to explain the
relationship. Data is collected by survey at small medium hotel sector in the
Northern Part of Peninsular Malaysia. The study found that PMS is correlated
to an each of the four selected individual management control system (MCS) and
also suggest that the development of PMS will influence the overall performance
in small medium hotel sector through the acting of MCS.
Henri & Journeault (2010) have examined the influence of the integration
of environmental matters within management control systems on environmental
and economic performance. More specifically, they used a mediation model to
investigate the direct effect of eco-control on economic performance, as well as
the indirect effect through environmental performance. Overall, eco-control has
no direct effect on economic performance. A mediating effect of environmental
performance on the link between eco-control and economic performance is
observed in different contexts. More specifically, eco-control has an indirect
influence on economic performance in the context of (i) higher environmental
exposure, (ii) higher public visibility, (iii) higher environmental concern, and (iv)
larger size
The interactive use of management control system (IMCS) affects process
and organizational innovation. Valeiras, Sanchez and Conde (2015) in their
study examined how the interactive use of management control systems (IMCS)
affect process and organizational innovation. Firstly, it is postulated that MCS
directly influences the development of process and organizational innovations.
Secondly, they argue in favor of a moderating role of MCS in the relationship
between innovation and financial performance. Most studies of IMCS 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 pervious literature on Simons’ Levers of
Control and Innovation. The results are also discussed with regard to their
managerial implication.Valeiras et al.,(2015)

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The study has been conducted by Bisbe & Otley (2004) which was utilized
the balance score card (BSC), it tested whether the interactive use of controls
(including the BSC) leads companies to develop and launch new products, and
whether it contributes to the impact of the new innovative products on
organizational performance. The study found that the interactive use of the BSC
did not moderate the relationship of the product innovation strategy on
performance.
New product development has become a central dimension in the strategies
of many companies (Brown & Eisenhardt, 1995; Clark & Fujimoto, 1991, P.6;
Grant ,1996; Gupta & wilemon, 1990; Schilling & Hill, 1998). Current emphasis
on first mover advantages, fast product introductions, more demanding product
functionality, and shortening life cycles has put greater pressure on new product
development (cooper, 1998).
Toney Davila (2000) conducted an empirical study on the drivers of
management control system’ design in new product development, this study
draws on Galbraith’s concept of uncertainty and investigates the relationship
between project uncertainty; product strategy and management control systems.
It also explores whether these systems help or, as argued in the innovation
literature, hinder product development performance. Results support the
relevance of the project uncertainty and product strategy to explain the design of
management control systems. They aslo show the better cost and design
information has a positive association with performance, but that time
information has a negative effect.
The results of this study indicate that these systems are relevant and,
moreover, managers in product development use them to obtain information
needed to reduce uncertainty. This findings contrasts with previous studies
which assumed that control systems are tools to reduce goal divergence and
found that control systems are only marginally relevant to product development.
Bisbe & Otley (2004) defined BSC in their survey as summarized, multi-
perspective sets of both financial and non-financial indicators that aim to
capture the extent to which strategic objectives are being achieved. In general,
Bisbe & Otley (2004) provide a comprehensive study of the effect of the
interactive use of control systems on product innovation. They conducted a
survey of 120 medium-sized mature Spanish manufacturing firms, and tested
whether the interactive use of controls leads companies to develop and launch
new products, and whether it contributes to the impact of the new innovative
products on organizational performance. The control systems studied were the
budgeting system, BSC, and project management systems [. The results indicated
that in low innovating firms, the use of an interactive control system may lead to
greater innovation, by providing guidance for the search, triggering, and
stimulus of initiatives and through providing legitimacy for autonomous
initiatives.

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However, in high innovating firms, the interactive use of controls seemed

to reduce innovation [. [This was thought to be caused by the filtering out of
initiatives that result from the sharing and exposure of ideas. This interpretation
is similar to that of Simons (1987). Another finding was that the interactive use
of controls moderated the impact of innovation on organizational performance,
possibly as a result of the direction, integration, and fine-tuning that is provided
by those interactive control systems. Overall, support was found for the positive
impact of formal MCS on innovation and long-term performance.
In the contemporary competitive, complex and changing global business
environment, firms are being challenged to adopt business models that enable
them to address the strategic uncertainties and risks they face in their business
environments. Managing accounting researchers argue that one of the ways
firms can continually rejuvenate to survive and succeed in these complex and
uncertain environments is to understand the role of management control systems
(MCS) in creating competitive advantages (Simons, 2000; Widener, 2007).
Moses Acquaah (2013) in his article entitled with Management Control
Systems, business strategy and performance: A comparative analysis of family
and non-family businesses in a transition economy in sub-Saharan African
compared the relationships among management control systems (MCS), business
strategy and firm performance in family businesses (FBs) and non-family
businesses (NFBs) in the context of a transition economy in sub-Saharan Africa
that has not been previously studied- Ghana. The findings indicated that the
influence of MCS on business strategy is contingent on whether the firm is a FB
or NFB. The influence of (i) DCS on the cost leadership strategy is stronger for
NFBs than FBs; (ii) ICS on the differentiation strategy is stronger for FBs than
NFBs. Moreover, business strategy mediates the MCS-performance
relationships; however, both the indirect and total impacts of MCS on
performance are stronger for FBs than NFBs.
Finally, the results of Henri, (2006) strongly that an interactive use of PMS
fosters capabilities of market orientation, entrepreneurship, innovativeness, and
organizational learning. Indeed, by focusing organizational attention on strategic
priorities and stimulating dialogue, PMS contribute to the process of knowledge
generation and dissemination, and foster collaboration throughout the
organization. These findings support Simons’ (1990) model that views control
systems as more than mechanistic tools used to support strategy implementation,
but also powerful devices to stimulate and manage the emergence of strategies
throughout the organization. These results are also complementary to the
empirical studies conducted by Abernethy and Brownell (1999) and Bisbe &
Otley (2004) that also support the role of MCS in an innovative and changing
context. However, while these two studies suggest a moderate effect of interactive
use on the relationship between innovation/ strategic change and performance,
the current results provide evidence of a direct relationship between interactive
use and capabilities leading to strategic choices and performance.

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This divergence can be explained in part by the focus of previous studies

on the interactive use of MCS while the current study integrates also the
diagnostic use as well as the dynamic tension.
6.0 CONCLUSION
The purpose of this paper is to review and critique empirical research that
examines the relationship between MCS, and organizations performance to
consider the state of our knowledge in this area, outline limitations, and suggest
improvements and directions for future research.
Overall, most of the selected papers that have used quantitative research
approach found there is a strong linkage between MCS and firm’s performance,
the findings of these studies clearly indicate that the role of MCS is to support
the formulation and implementation of competitive strategies and that it is
imperative for managers to match the appropriate control system to the right
strategy, and implementation of an efficiency-based strategy leads to experience
higher performance.
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13. Hoorn, F., & Hoorn, N. (2011). " Mergers & acquisitions, firm performance
and corporate governance": the impact of a firm's board structure on M&A and
firm performance (Master's thesis, University of Twente).
14. Jamil, C. Z. M., & Mohamed, R. (2013). The Effect of Management Control
System on Performance Measurement System at Small Medium Hotel in
Malaysia. International Journal of Trade, Economics and Finance, 4(4), 202.
15. Lopez-Valeiras, E., Gonzalez-Sanchez, M. B., & Gomez-Conde, J. (2015). The
effects of the interactive use of management control systems on process and
organizational innovation. Review of Managerial Science, 1-24.
16. Marginson, D. E. (2002). Management control systems and their effects on
strategy formation at middle‐management levels: evidence from a UK
organization. Strategic management journal, 23(11), 1019-1031.
17. Merchant, K. A., & Otley, D. T. (2007). A review of the literature on control
and accountability. Handbook of Management Account Research.(Ed.)
Chapman, CS, Hopwood, AG, Shields, MD, 785-804.
18. Simons, R. (2000). Performance measurement and control systems for
implementing strategy. Upper Saddle River, NJ: Prentice-Hall.

13 ‫جملة العلوم االقتصادية واإلدارية‬

4052 ‫) لسنة‬42( ‫) اجمللد‬501( ‫العدد‬
 THE IMPACT OF MANAGEMENT CONTROL SYSTEMS(MCS) ON
ORGANIZATIONS PERFORMANCE A LITERATURE REVIEW

DATA KEY NAME OF

NO

AUTHOR COUNTRY METHOD INDUSTRY FINDINGS

COLLECTION INFORMANT JOURNAL

Any type of MCs have

a positive influence on
Performance
primary, export performance,
Measurement
manufacturi strong social controls
Florez , et. Quantitati and
1 Spian Questionnaire Emplyees ng and increase firms’
al, (2011) ve Management
service efficiencies when
Control: Global
industries managing export
Issuesnce
channels.

The interactive use of

PMS fosters the four
capabilities by focusing
Top Accounting,
Henri, Quantitati Manufacturi organizational attention
2 Canada Questionnaire manageme Organizations
(2006) ve ng on strategic priorities
nt and Society[
and stimulating
dialogue.

Eco-control has no
Henri, & Accounting,
Quantitati Manufacturi direct effect on
3 Journeaul Canada Questionnaire Emplyee Organizations
ve ng economic performance.
t, (2010) and Society
Top
The influence of MCS
manageme
on business strategy is
nt, CEO,
contingent on whether
and heads Journal of
Acquaah, Quantitati the firm is a FB or
4 Ghana Questionnaire of the Business Family Business
(2013) ve NFB. And the
finance/acc Strategy
difference between
ounting
them depends on that.
department
s
The results indicated
that (1) mass service,
mature and cost leader
firms place a greater
emphasis on more
bureaucratic forms of
Auzair & MCS, (2) service Management
Quantitati Financial
5 Smith, Australia Questionnaire Service process type, Accounting
ve Controllers
(2005) organizational life cycle Research
stage, and business
strategies have a
significant influence on
the design of a firm’s
MCS.

The PMS is correlated

to an each of the four
selected individual International
MCS and also suggest International
Jamil &
Quantitati that the development of Journal of
6 Mohamed Malaysia Questionnaire Manager Service
ve PMS will influence the Trade,
, (2013)
overall performance in Economics and
small medium hotel Finance
sector through the
acting of MCS.

14 ‫جملة العلوم االقتصادية واإلدارية‬

4052 ‫) لسنة‬42( ‫) اجمللد‬501( ‫العدد‬
 THE IMPACT OF MANAGEMENT CONTROL SYSTEMS(MCS) ON
ORGANIZATIONS PERFORMANCE A LITERATURE REVIEW

The results of the

survey-based research
Bisbe,
do not support the Accounting,
& Quantitati Manufacturi
7 Spain Questionnaire CEO postulate that an Organizations
Otley, ve ng
interactive use of MCS and Society[[
(2004)
favors innovation.

MCS directly
influences the
development of process
Lopez- and organizational
Review of
Valeiras Quantitati Manufacturi innovations. MCS have
8 Spain Questionnaire firms Managerial
et al., ve ng moderating role in the
Science
(2015) relationship between
innovation and
financial performance.

Results support the

relevance of the project
uncertainty and
product strategy to
explain the design of
Quantitati management control
-Case study Accounting,
Davila ve & Manufacturi systems. They also show
9 Portugal - Manager Organizations
(2000) Qualitativ ng that better cost and
Questionnaire and Society
e design information has
a positive association
with performance, but
that time information
has a negative effect.

The role of
management control
during product
development is mainly
focused on reducing
uncertainty at each
Members
Akroyd, stage and promoting Qualitative
of different
& Qualitativ Manufacturi goal congruence at the Research in
10 Australia observation functional
Maguir e ng decision gates. They Accounting &
department
e, argue that this helps Management
s
(2011) explain why
management control
has a positive effect in a
product development
setting.

Appendix

15 ‫جملة العلوم االقتصادية واإلدارية‬

4052 ‫) لسنة‬42( ‫) اجمللد‬501( ‫العدد‬
 ‫‪THE IMPACT OF MANAGEMENT CONTROL SYSTEMS(MCS) ON‬‬
‫‪ORGANIZATIONS PERFORMANCE A LITERATURE REVIEW‬‬

‫تأثري نظم الرقابة اإلدارية يف أداء الشركات‬

‫مراجعة ادبيات‬

‫إٌ انبحٕد انخطبيقيت انخي حُأنج حأريش َظى انشقابت اإلداسيت عهى أداء انشرشااث حرى حُأنٓرا دري دسا راث‬
‫عذة دي انقشٌ انًُصشو دي اقخصادياث انبهذاٌ انُاييت ٔانًخقذيت‪ ،‬دي ظرم انًُادةرت ٔانخيقيرذ ٔانخ يرش دري انبي رت‬
‫انخضاسيت دي انيانى‪ ،‬باحج انششااث حخبُى ًَارس حضاسيت حًكُٓا يٍ ييانضت ا خشاحيضياث غيش يؤارذة‪ ،‬دعر ع عرٍ‬
‫انًخاطش انخي حٕاصٓٓا دي بي خٓا انخضاسيت‪.‬‬
‫إٌ انًةررأنت انشسيةررت درري دسا ررخُا حخًزررم برراٌ انبررابزيٍ درري انًحا رربت اإلداسيررت يررذعٌٕ برراٌ ٔابررذة يررٍ‬
‫انطشاسق انخي حةخيًهٓا انششااث يٍ اصم انُضاط ٔانبقاء دي بي خٓا انًيقذة غيش يؤاذة‪ ،‬حخًزم بفٓى دٔس انشقابت‬
‫اإلداسيت دي صرياغت ا رخيشاحضيت انشرشات‪ ،‬انخري حيرٕد عهيٓرا بفاسرذة حُادةريت حقرٕد انرى حيليرل أداء انشرشااث‪ .‬اٌ‬
‫ان شض يٍ ْزِ انذسا ت ْٕ يحأنت نهخٕض دي انذسا راث انةرابقت برٕل حرأريش َظراو انشقابرت اإلداسيرت دري أداء‬
‫انشررشااث باعخًرراد يضًٕعررت يررٍ انذسا رراث انًُشررٕسة درري يضًٕعررت يخُٕعررت ٔٔا رريت يررٍ انًض ر ث انيهًيررت‬
‫انيانًيت‪.‬‬
‫ٔيُرراقا انبحررذ ايعرعا بيررط انًُرراْش انبحزيررت راث انصررهت بررذٔسة بيرراة انشررشات‪ ،‬ييررشض انبحررذ انُخرراسش‬
‫انشسيةت انًخيهقت بٓزا انًٕظٕع‪ٔ ،‬حقذيى انخٕصياث نهبحٕد انًةرخقبهيت راث انصرهت بانًٕظرٕع‪ٔ .‬يةره انبحرذ‬
‫انعٕء عهرى انيٕايرم انيذيرذة انخري يرٍ انًًكرٍ اٌ يكرٌٕ نٓرا حٕصيرّ ادعرم دري حرأريش َظرى انشقايرت اإلداسيرت دري‬
‫االداء‪.‬‬

‫‪16‬‬ ‫جملة العلوم االقتصادية واإلدارية‬

‫العدد (‪ )501‬اجمللد (‪ )42‬لسنة ‪4052‬‬

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