Adoption and Elaboration of Management Control systems in Start-Up Firms

Abstract

The purpose of this research is to investigate what elements influence the adoption and refinement of management control systems (MCS) and its elaboration process in start-up firms. Through intensive interviews with owners and other top management members of a start up company, we found the following points. Many factors influence the adoption and the elaboration of MCS in start-up firms. Extension of firm size, IPO, and participation and exit of a new top management member contribute to the adoption and elaboration of MCS. Elaboration of MCS influences the role of MCS in start-up firms.