2017 Volume 25 Issue 2 Pages 19-33
An important issue of management control systems in high-contact service organizations is to guide employee’s behavior working in the front-line position in a desirable direction for the organization. To address challenges found in articles concerning ‘service encounter’ and ‘service profit chain’, service organizations should adopt ‘MCS as a package’ approach. Additionally, to realize value co-creation with customers, service organizations should revise management control systems to emphasize on cultural controls and include customers as a part of object of management control.
