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The Use of Control Systems in New Product Development Innovation: Advancing the ‘Help or Hinder’ Debate

The IUP Journal of Knowledge Management, Vol. VII, Nos. 5 & 6, pp. 70-90, September & November 2009

Posted: 9 Dec 2009  

Chris Akroyd

Oregon State University

Sharlene Narayan

The University of Auckland

V. G. Sridharan

University of Melbourne - Department of Accounting and Business Information Systems

Date Written: October 6, 2009

Abstract

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.

Suggested Citation

Akroyd, Chris and Narayan, Sharlene and Sridharan, V. G., The Use of Control Systems in New Product Development Innovation: Advancing the ‘Help or Hinder’ Debate (October 6, 2009). The IUP Journal of Knowledge Management, Vol. VII, Nos. 5 & 6, pp. 70-90, September & November 2009 . Available at SSRN: https://ssrn.com/abstract=1483565

Chris Akroyd

Oregon State University ( email )

Corvallis, OR 97331
United States

HOME PAGE: http://business.oregonstate.edu/faculty-and-staff-bios/chris-akroyd

Sharlene Narayan

The University of Auckland ( email )

New Zealand

Viravalli Govindarajan Sridharan (Contact Author)

University of Melbourne - Department of Accounting and Business Information Systems ( email )

185 Pelham Street, Carlton, Victoria 3053
Melbourne, Victoria
Australia

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