The Use of Control Systems in New Product Development Innovation: Advancing the ‘Help or Hinder’ Debate
Oregon State University
The University of Auckland
V. G. Sridharan
University of Melbourne - Department of Accounting and Business Information Systems
October 6, 2009
The IUP Journal of Knowledge Management, Vol. VII, Nos. 5 & 6, pp. 70-90, September & November 2009
New Product Development (NPD) innovation is a critical activity in the current economic environment. In order to manage their NPD innovation projects, firms use Management Controls Systems (MCS). However, the effect that these systems have on NPD innovation is not clear. One stream of research suggests that MCS help NPD innovation while another stream suggests MCS hinder NPD innovation. Past research has shown that the role and style of MCS used may offer explanations on why MCS can both help and hinder NPD innovation. This paper adds another explanation by examining the relationship between three models (divisional, activity/decision and conversion/response) of a commonly used MCS, known as the Stage-Gate Process1 in the NPD innovation literature, and three types of NPD innovation projects (incremental, semi-radical and radical). The insights from an ethnomethodology informed field study are used to understand how and why the firms may use a different MCS (Stage-Gate Process models) for different NPD innovation project types.
Date posted: December 9, 2009
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