Effectiveness of Management Control Systems in Pakistanis’ Firms: A Life-Cycle Perspective

Abstract

This study provides important insights into the effectiveness of Simons levers of control in the different development stages of the organization (Growth, Maturity, Revival stages). Drawing on the sample of 185 Pakistani firms, results provide that the emphasis on the interactive use of MCS is positively associated with organizational performance for growth-stage organizations. Similarly, our findings establish that emphasis on the boundary control system can be associated with organizational performance for maturity and revival organizations. The results of this study also indicate that emphasis on the diagnostic use of MCS and belief control systems cannot be associated with organizational performance across different OLC stages. Our findings assist top managers in determining the suitability of controls to enhance organizational performance across OLC stages.