Business Strategy, Management Control Systems and Performance

Abstract

Nowadays, the rapid changes with the turbulence and turmoil make up some of the organizational environment and one of the most important tools that will help managers in this environment is strategic management. Therefore, choosing the right strategy and management control systems aligned with the strategy is the problem that most managers are faced with it. The purpose of the present study is to investigatethe Relationship among Business Strategy, Management Control Systems and Performance in Qazvin Industrial Estates. The current study is an applied research carried out in a descriptive-correlation approach. This paper is completed with the cooperation of 190 company managers, Accountants and Strategy experts in Qazvin Industrial Estates that have been accepted in Tehran Stock Exchange, and has more than 20 personnel. To test the hypothesis, Confirmatory Factor Analysis, and Structural Equation Modeling are used. The findings indicate that two business strategies affects management control systems and these systems affect business performance.

Keywords

• business strategy
• differentiation strategy
• cost leadership strategy
• financial management control system
• non-financial management control system
• organizational performance