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Exploring management control of strategic capital investments in innovative settings: a literature review
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
2014 (English)Conference paper, Presentation (Other academic)
Abstract [en]

This paper reviews and analyzes literature on management control used in the dynamic and innovative settings of strategic capital investments (SCI). SCI have a significant impact on the long term performance of companies. Yet, they are challenging, complex and involve a high degree of uncertainty. Management control is demanding because money and resources cannot be traced to outcomes. SCI needs management control that is future oriented. Yet, Knowledge is lacking when it comes to the specifics of how future oriented management control can be exercised in innovative and dynamic settings. The first purpose of this paper is to review the theoretical and empirical literatures that offer the conceptual tools and the evidence of future oriented management control in companies operating in innovative settings. The second purpose is to prepare a framework to examine management control systems in the innovative context of SCI in the mining industry. This literature review is an attempt to organize current work in a way useful to structure future research questions and findings. The result of the literature review shows that the extant literature is characterized by an orientation towards future oriented management control systems for making SCI decisions. Further the review reveals that some future oriented control systems are more frequently advocated than others in the literature. Previous studies also show that the suitability of different appraisal tools for SCI is debatable. Because the traditional functions of management control systems rely on established measurable outputs, they are suggested to be less effective when considering SCI. The more advocated control systems tend to be more qualitative in nature and based on a long-term point of view. However, previous empirical studies suggest that traditional control systems still dominate in practice. Thus there is a gap between the normative management control literature and the empirical evidence in the area of SCI. Based on these findings it is concluded that there is need for more exploratory case studies able to capture intangible factors which address the different roles of management control in SCI, how management control is used and in the way that management control is used.Keywords: exploration, management control, innovation, strategic capital investments

Place, publisher, year, edition, pages
Research subject
Accounting and Control
URN: urn:nbn:se:ltu:diva-30857Local ID: 4d6158fe-25b3-4eff-a77d-9954256ac037OAI: diva2:1004086
Nordisk workshop i ekonomi- och verksamhetsstyrning : 30/01/2014 - 31/01/2014
Godkänd; 2014; 20140108 (boikar)Available from: 2016-09-30 Created: 2016-09-30Bibliographically approved

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