Disentangling the Role of Management Control Systems for Product and Process Innovation in Different Contexts Articles uri icon

publication date

  • August 2019

start page

  • 681

end page

  • 712

issue

  • 4

volume

  • 28

International Standard Serial Number (ISSN)

  • 0963-8180

Electronic International Standard Serial Number (EISSN)

  • 1468-4497

abstract

  • This paper studies the relationship between the use of management control systems and different types of innovation (product and process), taking into account innovation contexts (high-tech versus low-tech sectors). We develop and test our hypotheses based on a large sample of Spanish manufacturing firms and find that input controls have a positive association only with process innovation in both innovation contexts. Behavior controls have similar effects on both types of innovation outcomes for high-tech firms, while they have stronger positive associations with process than with product innovation for low-tech firms. Output controls are equally relevant for product and process innovation in both contexts.

keywords

  • management control systems; panel data; process innovation; product innovation; sector characteristics