The Design and Use of Management Control Systems in the Field of Innovation

Sammanfattning: Purpose: The purpose of this thesis is to contribute to the current state of research in the context of management control systems to support innovation by developing a theoretical framework covering relevant concepts and conducting a case study accordingly. Methodology: For the research method, a qualitative, deductive approach was used, containing a literature review, the development of a theoretical framework and an explanatory multi-case study. Theoretical framework: The theoretical framework is based on relevant theory in the field of innovation and management control. Empirical foundation: The empirical data consists of both previous studies in this research area and own research. The latter was conducted through semi-structured interviews with two case companies in the automotive and aerospace industry. Conclusion: The design and use of management control systems (referred to as Simons’ Levers of Control in this thesis) is influenced by the orientation towards ambidexterity and the intra-organizational environmental design. In contrast to the initial expectation, the empirical findings of the case study suggest that management control systems are rather used in an informal than formal way in the field of innovation, with an enabling environment being of utmost importance.