Management control systems in innovation companies: A literature based framework

Past research has traditionally argued that management control systems (MCSs) may present a hindrance to the creativity of innovation companies. This theoretical paper surveys the literature to focus an investigation on the MCSs of innovation companies. Within the object of control paradigm the paper develops and presents a theoretical model of the impact of eleven external, organisational and innovation related contingency factors on the MCSs in companies that engage in innovation activities. We also suggest measures for further empirical research. By formulating hypotheses on 43 potential interactions the model predicts contradictory influences on two direct control categories, results and action control, but stresses the importance of two indirect categories, personnel and cultural control. More specifically, the high levels of technological complexity and innovation capability in this type of company are expected to be negatively associated with the application of results and action control, whereas personnel and cultural seem to be more appropriate. Furthermore, important sources of finance, venture capital and public funding, are both hypothesised to be positively associated with the application of results, action and personnel control; whereas only public funding is predicted to be positively related to the application of cultural control. The principal contribution of this paper lies in synthesising the literature to provide a model of the impact of a unique set of eleven contingency factors for innovation companies on a broad scope of controls. In addition, the contingency model, if empirically validated, would add value by inferring the particular forms of management control which would be beneficial in innovative company settings. © 2014 Springer-Verlag Berlin Heidelberg

Strategic options development and analysis

Strategic Options Development and Analysis (SODA) enables a group or individual to construct a graphical representation (map) or a problematic situation, and thus explore options and their ramifications with respect to a complex system of goals or objectives. In addition the approach aims to help groups arrive at a negotiated agreement about how to act to resolve the situation. It is based upon the use of causal mapping – a formally constructed means-ends network. Because the map has been constructed using the natural language of the problem owners it becomes a model of the situation that is ‘owned’ by those who define the problem. The use of formalities for the construction of the model makes it amenable to a range of analyses encouraging reflection and a deeper understanding. These analyses can be used in a ‘rough and ready’ manner by visual inspection or through the use of specialist causal mapping software. Each of the analyses helps a group or individual discover important features of the problem situation. And these features facilitate agreeing a good solution. The SODA process is aimed at helping a group learn about the situation they face before they reach agreements. Most significantly the exploration through the causal map leads to a higher probability of more creative solutions and promotes solutions that are more likely to be implemented because the problem construction process is more likely to include richer social dimensions about the blockages to action and organizational change. The basic theories that inform SODA derive from cognitive psychology and social negotiation, where the model acts as a continuously changing representation of the problematic situation (a transitional object) – changing as the views of a person or group shift through learning and exploration. This chapter jointly written by two leading practitioner academics and the original developers of SODA, Colin Eden and Fran Ackermann, describe the SODA approach as it is applied in practice

AIS and MCS for Port Community Systems: An empirical analysis from Italy

The purpose of this paper is to analyse the role of Accounting Information Sys-tems (AIS) and Management Control Systems (MCS) in the information management within seaports when an information technology platform has been adopted, such as the Port Commu-nity Systems (PCSs). We conducted a literature review on PCSs and on how AIS and MCS could contribute to the platform in order to support the decision making processes of port users, like forwarder and shipping agents. Starting from previous studies focused on Italian seaports, by using the case study methodology, we collected data through semi-structured interviews to managers of the selected seaport. Indeed, we have outlined the usefulness in adopting AIS and MCS for PCS in the forwarder and shipping agents perspective