Preliminary Discussion on the Design of a Management System to Promote Entrepreneurship: Based on the Management’s Mode of Activity in the Face of Risk and Uncertainty

Abstract

This paper examines the role of Management Control Systems (MCS) in high uncertainty, leveraging Knight (1921)’s risk and uncertainty framework. It posits that MCS can aid entrepreneurial managers in navigating strategic ambiguities by supporting both causation-oriented planning and effectuation-driven decision-making. The discussion extends Tobita (2021)’s concept, suggesting MCS as a tool for managers to discern and close the gap between their company’s current state and its aspirational future. The proposed hypothesis suggests that entrepreneurs use MCS to evaluate risks, identify opportunities, and craft strategies, thus facilitating long-term decision-making and the expression of entrepreneurship.