The effects of management control systems on product innovation: An exploratory study

Abstract

The purpose of this study is to investigate the effects of management control systems on product innovation by mail survey. Some prior studies have discussed about the relationship between management control systems and product innovation. But these studies have not assumed various type of management control or product innovation. So, this paper explores what kinds of management control create two different type of product innovation; radical innovation, incremental innovation. This study revealed that the radical innovation is created by beliefs systems, and the incremental innovation is created by beliefs systems and interactive control systems. The study also revealed the emerging companies have succeeded to create both radical and incremental innovation than other companies.