Management control system use and performance: a study in brazilian companies using resources-based view

The purpose of this study was to understand the relationship among Management Control System Use, development of company's organizational competences and performance using Henri's framework (HENRI, 2006). The dimension Use of Management Control System, proposed by Simons (1995, 2000) in diagnostic use and interactive use is scarcely studied in Brazil, in spite of the international research that has shown some contradictory results. The research was carried out in 2008, by a survey in a sample of 104 companies from Exame Magazine 1000 Biggest Brazilian Companies. Using the Structural Equation Model, the main results indicate no evidence of negative relationships between the diagnostic use and the organizational competences development, what contradicts Henri's results (2006). It was also identified that the interactive use has positive influences in the competences of Organizational Learning and Market Orientation, and these have positive influences in Performance (measured by self-evaluation). This study contributes to Brazilian research as its subject integrates Management Accounting and Strategy and also for measurement the construct Dynamic Tensions. For the practice, the result is important as it shows that companies should continue to use Management Control for diagnostic, as it helps the organization to correct errors, simultaneously recommending the use of interactive way to activate organizational ompetences.

management control system; performance; resources-based view; interactive use; diagnostic use; organizational competences