Control systems and innovation in medium-sized firms
Mohammed Sami Albayati1, Ahmadasri Alaudin2, Zakaria bin Abas3.
The aim of this paper is to investigate the influence control systems on innovation
performance of medium-sized firms. The study adopts Simons’ levers of control (LOC)
framework to examine the control systems used by top managers. Using a quantitative
approach, data were collected from 156 Malaysian medium-sized manufacturing firms in
Malaysia. The findings show that control levers have positive relationship with innovation
performance. As one of control levers, interactive control systems contribute the most in
enhancing innovation followed by belief systems. Boundary systems show significant negative
influence on innovation. However, diagnostic control systems do not show significant
relationship to innovation.
Affiliation:
- Universiti Utara Malaysia, Malaysia
- Universiti Utara Malaysia, Malaysia
- Universiti Utara Malaysia, Malaysia
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