Influence of management leadership on using management control systems

Focusing on employee behavior change in the innovation process

Abstract

In this study, we examine the influence of different leadership styles(transformational leadership and transactional leadership) on innovation in case of using management control systems (diagnostics control system and interactive control system). Specifically, in this study, there are three hypotheses: (1)MCS influences innovation, (2)management leadership influences the relationship between MCS and innovation, and (3)management leadership influences innovation. To test their hypotheses, we conducted the questionnaire survey(n=411) targeting employees belonging to Japanese general companies. As the result of the linear multiple regression analysis based on the survey, we found that there had been direct influences of management leadership and indirect influences mediated by the management control system in the innovation process.