Robert Simons

The role of management control systems in creating competitive advantage: New perspectives

For the last two decades, management control systems have been conceputalized in terms of implementing a firm’s strategy. This view fails to recognize, however, the power of management control systems in the strategy formulation process. Based on a 2 year field study, a new model is presented to show how interactive management control systems focus organizational attention on strategic uncertainties. This process is examined in two competing firms to illustrate how top managers use formal systems to guide the emergence of new strategies and ensure continuing competitive advantage.

Accounting control systems and business strategy: An empirical analysis

Abstract Accounting theoreticians have argued that control systems should be modified in accordance with the business strategy of a firm. This study tests this hypothesis by examining differences in accounting control system attributes between two groups of firms following distinctly different strategies. Interview data and questionnaire data are used to provide evidence of the ways in which firms align their control systems and strategy. In addition, prelimenary evidence is discussed which suggests a relationship between accounting control systems, business strategy and firm performance.

The Entrepreneurial Gap: How Managers Adjust Span of Accountability and Span of Control to Implement Business Strategy

This study focuses on the relationship between business strategy, organization structure, and diagnostic control systems. The project analyzes data from 75 field studies to illustrate how managers adjust span of accountability and span of control to motivate different levels of innovation and entrepreneurial behavior. Six propositions are derived inductively about when, why, and how managers make these choices.