Purpose
Although middle managers play important roles in forming strategies and generating innovation, few studies have explored the influence of management control systems (MCS) on employees’ behaviors or performance at the middle-management level. The purpose of this study is to examine the effect an interactive use of MCS has on individual performance at the unit level.
Design/methodology/approach
A longitudinal, multisource and multilevel survey was conducted among 373 nurses in 20 units at a Japanese public hospital.
Findings
The multi-level analyzes indicate that middle managers’ interactive use of MCS has a direct and indirect positive influence on individual performance, through proactive behavior, as well as through psychological empowerment and, subsequently, through proactive behavior.
Research limitations/implications
As the present study collected data from nurses at a Japanese hospital, it is necessary to conduct research in other countries using different occupations to verify the findings.
Practical implications
Organizations need to be aware that the interactive use of MCS can be an effective tool for empowering and motivating employees.
Originality/value
The present study contributes to the literature by clarifying the mechanisms of how the interactive use of MCS influences employees’ psychological and behavioral outcomes at the middle-management level.
