The paper aims to analyze the influence of the enabling design of management control systems (MCS) on the intensity of use of management controls (budgeting and reengineering and improvement) in innovation (of processes and marketing).
A survey was conducted with mid-level managers of the companies that are considered the most innovative in Brazil. Structural equation modeling was applied to analyze the data.
The enabling MCS design positively and directly influences the intensity of use of management controls (budgeting and reengineering and improvements) and innovation (of processes and marketing). Indirect effects are also observed in the relationship between the enabling MCS design and innovation, through the intensity of use of reengineering and improvements. Environmental uncertainties reflect negatively on the intensity of use of management controls and innovation. These results broaden the discussions on the factors that can affect innovation actions and highlight the importance of considering them in the MCS design.
The value of the study lies in contributing to minimize inconsistencies in research results concerning the effects of MCS on innovation and of factors that may act as intervening factors in such a relationship. It discusses the influence of internal organizational factors, related to MCS design, and of external factors, environmental uncertainties, on the intensity of use of specific management controls and on the promotion of innovations in companies imbued with this mission.
