Management control systems for process orientation: the role of diagnostic, interactive and cultural controls

Purpose For process-oriented companies, management control systems (MCS) are important for setting goals (diagnostic use) and providing information (interactive use), and they must be complemented by cultural controls. However, research on MCS for process orientation is scarce, often reductionist, and offers inconclusive findings. This paper presents an integrated analysis of the roles of diagnostic, interactive and cultural controls in process-oriented companies and the effects of the use of these controls on process control performance and process performance. Design/methodology/approach Data were collected in a survey of 365 European companies, and hypotheses were tested using structural equation modeling. Findings The results show that interactive controls and cultural controls with a focus on processes are positively related to process control performance. By contrast, the role of diagnostic controls is less pronounced. Cultural controls positively influence both diagnostic and interactive controls. Furthermore, process control performance has a significant positive effect on process performance. Originality/value This study adds to the theory on MCS for process orientation by examining the configuration of MCS packages and the relationships between their components. More specifically, it analyzes the relationships between the diagnostic and interactive use of cybernetic controls and cultural controls.