Using Management Control Systems to Achieve Alignment between Strategic Investment Decisions and Strategy

The purpose of this field study is to gain better insights into the control strategies of firms with regard to strategic investments in manufacturing plant and equipment. More specifically, this research sets out to examine how management control systems (MCSs) are designed and used in an organization to help align strategic investment decisions (SIDs) with the firm's strategy. A field research design is used combining exploratory and explanatory research. Data about SID processes and associated MCSs is gathered from field interviews and company documents at ten research sits. Data analysis is based upon a coding scheme designed to help generate theory from field research. The grounded theory that emerges is one of dynamic adaptation of MCSs triggered by changes in environmental conditions in order to help achieve strategic alignment of SIDs