Sifting Through the Inconsistencies of Organizational Learning and Management Control
53 Pages Posted: 18 Aug 2012 Last revised: 1 Jan 2013
Date Written: June 1, 2012
The evidence on the relations between the use of management control systems and organizational learning is conflicting and inconclusive. One reason for this may be that both management control systems and organizational learning are multi-faceted. To shed insights on the existing inconsistent evidence, we draw on cognitive load and framing theories to argue that the use of different types of management control systems will differently affect different types of organizational learning. Using survey data from 241 respondents our structural equation model provides evidence that the use of a cybernetic system is positively associated with generative learning while the use of a planning system is positively associated with adaptive learning. Moreover, the effect of each of the management control systems on performance outcomes is either partially or fully mediated by organizational learning. These results show the importance of recognizing the multi-faceted nature of both management control systems and organizational learning.
Keywords: Management control, organizational learning, firm performance, mediating, structural equation models
JEL Classification: M40, L20
Suggested Citation: Suggested Citation