This study examines how management accounting information systems (MAIS) mediate the relationship between Simons' (1995) levers of control and organizational performance. Building on the dynamic tension perspective, this study proposes that MAIS serve as the critical operational mechanism through which enabling controls (belief and interactive systems) and constraining controls (boundary and diagnostic systems) influence both nonfinancial and financial outcomes.
Using survey data from 158 large and medium-sized enterprises in Saudi Arabia's manufacturing and service sectors, analyzed through structural equation modeling (SEM) conducted in AMOS 21, this study demonstrates that MAIS mediate the effects of control systems on performance.
The results reveal that enabling controls foster innovation and adaptability through MAIS-enabled strategic learning, while constraining controls achieve operational discipline through MAIS-mediated monitoring and compliance. Importantly, this study identifies a sequential performance pathway where MAIS-driven improvements in nonfinancial metrics subsequently enhance financial results. These findings provide empirical evidence that information systems are not merely passive tools but active intermediaries that shape how control systems translate into organizational success.
This study contributes to management control theory by empirically validating MAIS as the core operational mechanism that reconciles the inherent tension between innovation and discipline. Building on this foundation, the study makes three key theoretical advances: First, it repositions MAIS as the core integrative mechanism within control frameworks. Second, it extends Simons' framework by demonstrating how control levers require information system intermediation to realize their strategic potential. Third, it enhances the balanced scorecard paradigm by mapping the processual transformation of controls into financial outcomes through nonfinancial capabilities.
