Management control systems impact on knowledge management

Approximate reading time: 2-3 min. This blog is about management control systems impact on knowledge management.

 

Knowledge management

 

Innovation is becoming one of the most relevant means to outperform competitors continuously. Especially in markets with increasing complexity and intensity of competition. The sequence runs from diversifying and adapting to re-positioning and even re-inventing the organization. One important stream of research has emerged that focuses on how enterprises manage the processes of acquiring and sharing new knowledge to sustain the competition challenge. Likewise, literature recognizes that Management Control Systems (MCS) play an important role in supporting the “problem finding” and “problem-solving” processes. One study investigated the close link between MCS and knowledge production.

The research was based on a survey conducted on a sample of 40 enterprises working in the North East of Italy. The enterprises carry out pertinent innovation processes. A structured questionnaire was delivered to the CEO of each company, to the Financial Manager and the Innovation Manager (a total amount of 120 questionnaires).

 

Advice to managers and leaders regarding knowledge management

Based on the results of the study, the researchers provide the following advice to managers and leaders regarding knowledge management:

– Firstly, enterprises could review their use of MCS tools. This could by adapting them in a manner which facilitates the processes of knowledge acquisition, knowledge generation and knowledge selection. This means the use of MCS tools should be dynamic to the knowledge management process.

– Secondly, as knowledge actors, company controllers could work together with other units of their organization to produce information that could aid the innovation process. This highlights the importance of having controllers involved in the operation of the firm. Not being dislocated in an office elsewhere.

 

References:

Massaro, M., Bardy, R., Zanin, F., 2013. Organizing innovation: do management control systems contribute to knowledge management? Business Systems Review 2 (1), 47-58

Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2272911

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