Management Control Systems in Innovative Firms:Linkages between cultural and other control elements

Abstract: Key words: Management control, package, innovative company, cultural control, interface Purpose: This thesis will examine how the management control systems of innovation companies operate as a package and which linkages are there between the cultural and the other control practices. Methodology: The methodology is based on a qualitative approach carried out in the form of a multiple case study. Theoretical review: The theoretical review integrates different frameworks and theories on management control systems and innovation. Malmi and Brown‘s package (2008) will be applied along with Davila‘s (2005) typology to explain the different role of MCS in the innovation context and identify the interface between the cultural and the rest of the controls. Empirical foundation: The empirical findings presented were generated from interviews with three case companies. Conclusion: The findings of this study point out that the innovation strategy of an organization has an effect on the design and function of its MCSs. Cultural controls lay the foundation upon which the other types of practices are built. The linkages between the cultural controls seem to be very clear with some elements or more indirect with others.