145 MANAGEMENT CONTROL SYSTEM IN MULTINATIONAL ENVIRONMENT: A CRITICAL REVIEW Richard Akinola University of Lagos, Nigeria Henry Okundalaiye University of Lagos, Nigeria Received: June 16, 2022 Accepted: October 8, 2022 Online published: October 29, 2022 Abstract Organisations are now aimed at achieving fast growth, continuous development, increased performance, profitability and being at the top of the global business spectrum. This necessitates the need for Management Control System (MCS) within firms which will improve firms’ competitiveness and performance. This study examines the impact of management control systems on organisational performance using belief control, boundary control, diagnostic control and interactive control systems as a proxy in the relationship between MCS and organisational performance. The study was anchored on Resource Based View (RBV) Theory and Contingency Theory. The study employed survey design which is a type of descriptive research design. Simple Random sampling technique was employed and relevant data were gathered through the use of structured questionnaire. The sample population consisted of three hundred and fifty-eight (358) employees of Globacom Limited, Lagos State. The findings revealed that all the management control system (belief, boundary, diagnostic, and interactive control systems) are directly related to organizational performance. The study recommends that managers should prioritize where to spend their time and resources when using management control systems. Keywords: Management control system; Belief control; Boundary control; Diagnostic control and interactive control systems; Organizational performance. 1. Introduction Organizations are undergoing constant change today (Romi, 2018). Corporations are now aiming at fast growth, continuous development, higher efficiency, profitability and being on top of global business (Zhang, 2013). In addition, organizations are now working in a International Journal of Economic Behavior, vol. 12 n. 1, 2022, 145-158 https://doi.org/ 10.14276/2285-0430.3434 146 constantly changing environment that is very difficult to predict these changes. This problem has led organizations to spend a lot of time and money on change so that high performance is achieved (Nwakoby, Okoye, & Anugwu, 2019). Amin (2017) stated that performance excellence is not feasible today through traditional management methods and organizations need the new management approaches. Formulation, implementation and performance are part of strategic processes which provide information on the drivers of organizational success and failure (Albertini & Muzzi, 2018). A common activity exists at all stages where activities and results are controlled, to compare the actual performance with the desired performance and where managers can take corrective actions. In this business, the MCS is responsible for developing models and systems that support strategic processes (Albertini & Muzzi, 2018). Nasiru (2018) said that the MCS has developed exponentially in the past two decades which has resulted in the need to better understand its roles and how it can meet managerial needs (Nasiru, 2018). The performance of all businesses is crucial according to Nasiru (2018). The wide discussion of organizational performance extended the sphere of efficiency, effectiveness, quality, productivity, a good workforce, innovation and learning. Companies are focused on general effectiveness (Amron & Mahmud, 2015). Organizations must therefore evaluate their external and internal environment for sustainable performance opportunities and challenges (Muhammad, Masron & Abdul Majid, 2017). This calls for the Management Control System (MCS) of companies to improve their competitiveness and performance of companies. The formulation and implementation of a management control system include all strategic processes that can be achieved through analysis, planning, measurement, control and reward (Bedford & Malmi, 2018). The Management Control System (MCS) is defined by Hossain and Hakeem (2018) as the process that ensures that resources are obtained and efficiently and effectively used to meet the organization's objectives. In another empirical review, Ukoha, Alagah and Zuzu (2017) classified the MCS as a formal control and defined it as a control package including budgeting, formal hierarchy and oversight, accounting reports, rules and operating standards, job descriptions, organizational structure, performance measurement statistics, and staff and assessment systems. Okpara (2017) has also reiterated that the management control system supports a company in achieving its strategic goal; it ensures the effectiveness and efficacy of resources in a company, taking into account all of the significant aspects of controls and ensuring their balanced implementation in the company. However, Albertini and Muzzi (2018) expressed their empirical views by noting that the management control system was vital for management to formulate strategies, specify the operational activities that are required to implement strategies, outline mutual expectations, and set priorities for operational improvements. Management control system allows managers to achieve key organizational goals. First, MCS supports managers in decision-making, aligning their goals with the goal of the organization and tracking the performance of managers so that they can take remedial actions in real time if required. Second, MCS allows managers to provide strategic direction for their organizations' innovative efforts by making efficient use of resources (Lin, Chen & Lin, 2017). The total economic results of the activities of any organization are the organization’s performance. The performance of every organization namely: effectiveness, efficiency, quality, productivity, quality of life, innovation and profitability has a complex interrelation 147 between these criteria and the organization. In a nutshell, an organization's success depends on the sound implementation of the company's strategy (Amin, 2017). In short, the management control system is intended to assist managers in achieving their objectives. Individual and organizational goals are permitted to be pursued by managers and their personnel (Ukoha, Alagah & Zuzu, 2017). However, the amount to which managers fulfill these goals is determined by contextual considerations in various business environments. This view makes MCS the main driver of organizational performance (Ukoha, Alagah & Zuzu, 2017). Ideally, strategic objectives are provided by top management and the employees pursue these objectives. Unfortunately, this is very difficult in practice because an organization, as far as its inner environment is concerned, does not function or remain static and constant. When one or more of these factors change, at least certain aspects of the management control system will probably be redesigned. These changes can result in tension between creative innovation and the movement for predictable goals in the organization. Okpara (2017) also noted that the strategic choices made by the company will affect its Management Control System (MCS), which means that various types of organizational plans and strategies will tend to cause different configurations of control systems that distort organizational objectives. There has been growing evidence of unseemly use of MCS that could lead to employee dysfunction, thereby negating the productivity and efficiency of the organization. The most prevalent occurrences of the organizational dysfunctional regime are the manipulation of real data to either increase firm performance or prevent unfavorable consequences generated by disclosing the facts. There is even a lack of prior empirical research into its use, provided that MCS can be used for various purposes. Some studies indicate that MCS is the basis for organizational performance, but how? Recent, ambiguous, inconclusive, or sometimes contradictory results have been achieved through research on the impact of management control on organizational performance. Despite all the studies, the impact of the various MCS applications on organizational performance still needs to be better understood. This study examines the impact of management control systems (belief, boundary, diagnostic, and interactive) on organizational performance in the light of the Resource Based View Theory and the Contingency Theory. Following the aim of the study, the various research questions are given below: i. To what extent does belief control system improve organizational performance within the telecommunication industry? ii. What is the impact of boundary control system on organizational performance within the telecommunication industry? iii. What are the influences of diagnostic control system on organizational performance within the telecommunication industry? iv. What are the influences of interactive control system on organizational performance within the telecommunication industry? 2. Literature Review 2.1 Resources-Based View (RBV) Theory Barney (1991) advocated a strategic management approach called a resource-based view (RBV). Since this time, the strategic management approach RBV has become a leading strategic management theoretical concept, to explain how organizations achieve 148 competitive advantages. This theoretical model considers the resources of an organization as the key to superior organizational performance, according to the resource-based perspective. In this context, RBV defines resources broadly to cover all the assets an organization can use to formulate and implement strategic measures. A competitive advantage can be achieved when an organization creates more economic value than its product market competitors, and thus "the difference between the profits perceived by good purchasers and the economic cost of the enterprise" is referred to as economic value (Peteraf & Barney, 2003). The development of competitive advantages within the conceptual framework of RBV is strongly linked to the existence of valuable, rare, inimitable or non-substitutable characteristics of organization-specific resources and capabilities (Barney, 1991). Moreover, a further precondition is the heterogeneous and immobile distribution of resources and capacity among organizations. The conceptual framework of RBV states that corporate resources are broadly divided into two categories, tangible and intangible. The key characteristics of tangibles are that they have visible physical attributes; capital, land, buildings, plants, machinery and supplies are examples of tangible sources. Inverse, intangible resources are invisible and have no physical attributes. Some examples are the culture, brand equity, knowledge base, reputation and intellectual property of an organization (Barney, 2007). According to RBV principles, companies must focus on the identification, development, protection and use of resources and capacities to ensure a sustainable competitive advantage. The resource-based theory considers the resources of the organization as the key to improved organizational performance. In this connection, resources include all the assets a firm can draw on to develop and execute an organizational performance strategy. Malmi and Brown (2018) affirm that the management control system can help develop an appropriate theory on how to design a series of controls that support company objectives, control activities and enhance organizational performance. 2.2 Management Control Systems The concept and definition of the management control system (MCS) have been examined in various literature. Henri (2016) sees Management Control System (MCS) as procedures and systems that are formalized by using the information to retain or alter the pattern of organizational activity and as well include the planning system, reporting and monitoring system that depend on data provided (Henri, 2016). MCS was developed by Anthony (1965) as the process for the effective and efficient management and utilization of resources, to achieve organizational objectives (Akroyd & Maguire, 2017). Agbejule (2017), on the other hand, described the management control system as a formal information-based routine and procedures that managers use to preserve and change organizational patterns. Bedford and Malmi (2018) state that in the form of planning and control, the management control systems include: strategic planning, management control, and task or operational control. Strategic planning control addresses problems relating to the fundamental goals and implementation in an organization, followed by monitoring of its progress. Management control deals with proper allocation and efficient use of resources, competitive substance and the transformation into the reality of the organizational objectives. The task management controls address the efficiency factors of the company's operations. The organizations' employees are effectively guided in the achievement of their goals. The management establishes formal controls in writing, while employee behavior provides informal control (Bedford & Malmi, 2018). 149 The management control system is a system, according to Albertini and Muzzi (2018). A system consists of a combination of machines and people working for a common goal. A system may be described as a number of phases or stages consisting of the input, transformation and output phases. Measurement, analysis and reporting phases are added to the system by a control system. Measurement of output is carried out as compared to a plan, analyzed and then reported in the positive or negative as feedback in the relevant earlier stages of the control system. Data or information is usually returned to organizational management at every stage of the control system. Nasiru (2018) argued that management control system is a tool for the company's strategy. However, a more comprehensive view of the management control system may be a system based on the concept of guidance instead of compulsion and also include learning and limits. The concept of the management control system is, therefore, more diverse than the concept of formulating and implementing strategies and is used for various purposes: observation, learning, reporting, restricting, monitoring, and motivation. Simons (1995) designed a management control framework to achieve the company's strategic goals. The control frameworks concentrate on the transmission and interaction of information for empowerment, innovation, and control (Nasiru, 2018). Empowerment means that employees are given more decision-making and rights in addition to senior management; this is believed to be the way to effectively achieve the desired result. Managers cannot take all information and decisions into their possession. Innovation is based on human activities to improve strategic goals and goals. This framework aims to implement management instruments that can maintain or change patterns of organizational behaviour. This should be done in a way that reduces to a certain level the final control risk. The key in Simons's (1995) control framework is the interaction of instrumental control mechanisms with people. The interaction between instrumental mechanisms and people-oriented control mechanisms involves leverage between belief, interactive, boundary and diagnostic control systems. The leverage effect and control levers reinforce one another and efficiently and effectively achieve strategic organizational aims. The following are four control levers for Simons (1995): Belief control systems: People that are part of a belief control system are encouraged to explore new methods to provide value to commit to the organization's aims. Effective managers make an effort to educate and motivate workers about the company's basic values and purpose. These executives believe in people's inherent ability to innovate and bring value to strategic organizations. According to Simons (1995), the core values of creating a sort of social control by employees must be strongly identified. This social control reduces abnormal conduct concerning fundamental values. It will also lead project staff to effectively pursue strategic corporate goals (Hossain & Hakeem, 2018). H01: Belief control system has no significant influence on organizational performance Boundary control systems: This provides limitations of the employee project so that unethical behaviour can be reduced to a minimum level (such as framework, conditions, rules and code of conduct). Furthermore, boundary control systems are designed to reduce risks. This system shows the limits that should not be exceeded on employees in the organization. 150 H02: Boundary control system has no significant influence on organizational performance Diagnostic control system: It is used to track targets, key performance indicators, and remedy deviations from the default norm. However, using diagnostic control systems alone will not be enough to provide successful control, since the interplay of instrumental and people-oriented control mechanisms, as well as the leverage effects between belief, interactive, diagnostic control systems, and boundary systems, is crucial (Hossain & Hakeem, 2018). H03: Diagnostic control system has no significant influence on organizational performance Interactive control systems: They are used for organizational learning and strategy enhancement and concentrate on organizational strategic uncertainty. To perceive internal and external signals and react to the company plan, interactive control is a constant interaction between top management and other participating organizational components. Managers may use interactive controls to handle strategic organizational ambiguity, assess risks and opportunities, and react proactively to competitive situations (Hossain & Hakeem, 2018). H04: Interactive control system has no significant influence on organizational performance Strict limitations are placed through the diagnostic control and boundary systems-yin- supplemented by belief systems and interactive control systems-yang, allowing the required innovation to be made. Simons (1995) provided a solution with the principle of control levers, where the necessary creativity and control are sought for interaction. The management should provide the core values of the (project) organization first within the control levers. Management must also set clear boundaries for employees to stay. Second, to attain the organization’s objectives, the interactive control needs to focus on the communication of senior management with the other parts of the organization. Interactive controls aim to create a process of learning throughout the organization through the ongoing reduction of human process deficiencies, optimization of processes and improvement of organizational strategies. This can be achieved by managers regularly identifying risks and evaluating their effects. 2.3 Organizational Performance According to Bashaer (2016), organizational performance refers to a company's performance against its objectives. Tomal and Jones (2017) also define organizational performance as an organization's actual results or output against the planned product of the organization. In addition, According to Bello (2017), a company's potential success is determined by its organizational performance and capacity to successfully execute strategies to fulfil its corporate objectives. The efficiency, performance, and outcomes of the business model are only a few characteristics that indicate organizational performance (Beauty, 2017) According to Adedeji (2017), organizational performance refers to an organization's actual performance or outcomes as compared to its anticipated performance (or goals and 151 objectives). Organizational performance according to Adedeji (2017) consists of three particular areas of business performance: i. Performance of the financial sector (profits, ROA, ROI, etc.) ii. Product and performance on the market (sales, market share etc.) iii. Return of shareholders (total shareholder interest, economic value added, etc.). In most studies, variables such as strategy planning, operations, finances, legal and organizational development are included (Paul, 2018). In recent times, organizations have tried to manage their performance using the balanced scorecard methodology, which measures performance in several dimensions like: i. Performance of the financial sector (e.g. shareholder return) ii. Service to the client iii. Social accountability (e.g. corporate citizenship, community outreach) Every organization's performance largely depends on its leadership ability in the implementation of strategies (Ngwama & Ogaga-Oghene, 2022). According to Silva (2018), the core of leadership is a conditional connection between a manager and his followers. Given the fact that organizational objectives are always being thwarted, leaders' tactics must be adaptable enough to accept change. Employees are a major element of the firm and comprise the team that works to accomplish organizational objectives, thus their performance is also important. 2.4 Empirical Review Similarly, Nasiru and Rapiah (2018) conducted a study that shows how Nigerian companies' institutional issues have led to a general weakness in their management, which hinders the performance of numerous companies and has resulted in a weak management control system, which is not consistent with the strategic organizational goals. The study adopted a framework consisting of a critical component of the Malmi and Brown (2008) MCS package of planning control, administrative control and cultural control and would demonstrate improved performance if empirically investigated. The study showed that Nigerian managers need to be more informed of the necessity of an improved MCS practice because this would lead to reverse institutional changes, where isomorphic pressure would lead to better MCS practices, which would lead to better business performance. Oshode, Alade and Arogundade (2018) conducted a study which examined the impact of a management control system on the performance of selected Lagos, Asaba and Kano textile firms in Nigeria using the tool for structural equation modelling. The study's findings demonstrated that, as predicted, external control and formal internal control systems were highly linked with financial, service quality, and procedural performance characteristics. Internal informal control, on the other hand, only had a substantial link with service quality performance. In contrast to the direct association between external control and firm performance, the research found that external control, via the existence of formal internal control, had a greater relationship with all three performance characteristics. In a study by Muhammed (2017) numerous studies in several developed and emerging economies studied the effect of the management control system (MCS) on business strategy and company performance. The findings showed that there is a strong connection between MCS, strategy and business efficiency, which can influence the formulation and implementation of competitive strategies positively and support them. 152 In terms of cohesion and adaptability within the Nigerian aviation industry, Ukoha Alagah and Zuzu (2017) empirically looked at management control and business effective relations. It tried to explain management control systems to improve the efficiency of aircraft companies. The authors found that management control systems and organizational effectiveness are significantly interconnected by the Spearman Rank Order correlation coefficient in testing the hypotheses. The interaction between the management control systems and the effect it is having on the strategy and organisational performance has been studied empirically by Okpara (2017). The result of the research showed that performance- driven behaviour and regular use of management control combine to give improved outcomes. Uddin and Hossian (2017) carried out a study examining the impact of management control systems on organizational performance and productivity from the perspective of multinationals operating particularly in the telecommunication sectors of Nigeria. The study maintains that management control influences organizational performance and productivity significantly in the dynamic emerging world. 3. Methodology The survey design, which is a descriptive form of research methodology, was used for this study. The survey approach offers the benefit of collecting vast amounts of data from a big population at a cheap cost. For the population of the study, the study focused on Globacom Limited. Telecommunications services, such as international and domestic voice calls, SMS, high-speed internet and fixed landline ADSL from the company as well as telecommunications solutions, are provided by Globacom Limited. Nigeria, United Kingdom, and Ghana are some of the countries in which Globacom has customers. Due to convenience and easy data accessibility, 358 employees of Globacom Limited in Lagos State were selected for the study. Field surveys were employed to collect data, and structured questionnaires were the primary method. Out of the 358 employees, 248 employees partook and filled out the questionnaire. Simple random sampling was adopted as it provided the entire population with equal chances and lowers the rate of error. Each item was measured on a 5-point Likert scale: strongly agree, agree, neutral, disagree, and strongly disagree. The items for each of the management control system construct were adapted from Mohamed, Wee, Rahmana and Aziz (2014) study. Belief, interactive, boundary, diagnostic, and interactive control systems had Cronbach’s alpha values of 0.881, 0.897, 0.871, and 0.897 respectively. The items for the organizational performance were developed for this study, and organizational performance had Cronbach’s alpha value of 0.756. According to Sekaran (2005), Cronbach’s alpha of 0 to 0.6 signifies low reliability; if the value is within 0.7, it signifies acceptable reliability; and if the value is 0.8 and above, it signifies that the instrument is reliable. Pearson correlation was adopted using Statistical Packages for the Social Sciences (version 20) to determine the relationship between the dependent and independent variables. 4. Research Results The study showed that there were more male respondents (54.8%) than females (45.2%) in the sample of respondents. 71% of the total respondents were aged between 30 and 49 years. The majority of respondents for this study are married representing 80.6% of the total respondents. The respondents were educationally sound with 58% of them having 153 graduated with B.Sc./HND. The majority were middle-level staff, and have spent more than 6 years in the organization. Hypothesis One: H01: Belief control system has no significant influence on organizational performance From Table 1, the correlation result hypothesis one shows that belief control system has a positive correlation coefficient (r) of 0.474 with organisational performance, and it is significantly related at 0.000 (p<0.01). This indicates that there is positive and significant relationship between belief control system and organisational performance. This implies that as the level of belief control system increases in the organization, the better the organisational performance and vice versa. Therefore, the null hypothesis is rejected (H0) and the alternate hypothesis is accepted (H1). Hypothesis Two: H02: Boundary control system has no significant influence on organizational performance From Table 1, the correlation result hypothesis one shows that boundary control system has a positive correlation coefficient (r) of 0.475 with organizational performance, and it is significantly related at 0.000 (p<0.01). This indicates that there is positive and significant relationship between boundary control system and organizational performance. This implies that as the level of boundary control system increases in the organization, the better the organizational performance and vice versa. Therefore, the null hypothesis is rejected (H0) and the alternate hypothesis is accepted (H1). Hypothesis Three: H03: Diagnostic control system has no significant influence on organizational performance From Table 1, the correlation result hypothesis one shows that diagnostic control system has a positive correlation coefficient (r) of 0.393 with organizational performance, and it is significantly related at 0.000 (p<0.01). This indicates that there is positive and significant relationship between diagnostic control system and organisational performance. This implies that as the level of diagnostic control system increases in the organization, the better the organisational performance and vice versa. Therefore, the null hypothesis is rejected (H0) and the alternate hypothesis is accepted (H1). Hypothesis Four: H04: Interactive control system has no significant influence on organizational performance 154 From Table 1, the correlation result hypothesis four shows that interactive control system have a positive correlation coefficient (r) of 0.472 with organisational performance, and it is significantly related at 0.000 (p<0.01). This indicates that there is a positive and significant relationship between interactive control system and organisational performance. This implies that as the level of interactive control system increases in the organization, the better the organisational performance and vice versa. Therefore, the null hypothesis is rejected (H0) and the alternate hypothesis is accepted (H1). Table 1 − Correlations Matrix Org_Perf Blf_Crtl Bon_Crtl Diag_Crtl Int_Crtl Org_Perf Pearson Correlation 1 Sig. (2-tailed) Blf_Crtl Pearson Correlation .474** 1 Sig. (2-tailed) .000 Bon_Crtl Pearson Correlation .448** .538** 1 Sig. (2-tailed) .000 .000 Diag_Crtl Pearson Correlation .606** .530** .682** 1 Sig. (2-tailed) .000 .000 .000 Int_Crtl Pearson Correlation .620** .605** .612** .704** 1 Sig. (2-tailed) .000 .000 .000 .000 ** Correlation is significant at the 0.01 level (2-tailed). Blf_Crtl = belief control, Bon_Crtl = boundary control, Diag_Crtl = diagnostic control, Int_Crtl = interactive control systems, Org_Crtlorganisational performance 4.1 Discussion of Findings The management control system is an undisputable instrument for companies to achieve efficiency in terms of cost reduction, coherence and rapid reactions to a dynamic environment for competitiveness and business performance. Research shows that management control system elements play an important role in influencing organizational performance positively. The belief control system relates to the company's culture, in which a vision and mission statement that state the interests of all stakeholders are communicated to the employees. This result showed that the belief control system is an indicator to ensure managers produce reports detailing relevant trends to achieve better performance for the organization. The findings backed up Hossain and Hakeem's (2018) suggestion that organizations should include belief control systems in organizational performance system design to boost employee readiness to share information to create values and modify beliefs to accomplish corporate goals. The study revealed that the relationship between organizational performance and the belief control system is positive and significant. The organization will have an appropriate code of conduct, standard operating procedures and a variety of regulatory constraints so that employees follow industry practices and guidelines by including the boundary control system in the organizational structure design. The results reflect Nasiru and Rapiah's (2018) findings, stating that boundary control systems aim to mitigate risks. These systems show the limits that should not be exceeded for workers in the organization. Findings on the diagnostic control system, for example, the budget and budgetary controls and performance assessment system will enable Project Managers to regularly monitor the progress of employees. 155 The study also showed that interactive control is a major indicator of organizational performance. Interactive monitoring systems give the organization the freedom and mechanisms for periodically assessing customer satisfaction, forecasting and maintaining the firm's existing project portfolio. The results are consistent with those of Ukoha, Alagah, and Zuzu (2017), who hypothesized that an interactive control system might inspire organizations to seek out new methods and practices to improve organizational performance. Managers may use interactive control systems to concentrate on strategic organizational uncertainty, learn about dangers and opportunities, and react proactively to changing competitive situations (Hossain & Hakeem, 2018). 5. Conclusion This study examined the link between management control systems and organizational performance in the contextual effect of belief, boundary, diagnostic, and interactive control systems. Companies are pushed to establish business models to handle the risks and uncertainties in their business settings in today's competitive and complicated global economy. The role of the management control systems (MCS) in creating competitive advantage by continuously rejuvenating organisational survival and growth in these complex and uncertain environments cannot be over-emphasized. Managers employ instruments and systems to guarantee that the business responds quickly to dynamism, reduces costs and improve safety while ensuring that the actions and conduct of workers are compatible with the corporate strategy and goals. Businesses may achieve efficiency in terms of cost reduction, cohesiveness, and rapid reaction to the dynamic environment via the use of the management control system, which is an indisputable instrument. 5.1 Recommendations i. The company's basic values, beliefs and aspirations should be well communicated to personnel to get them enthusiastic and oriented about the organizational culture. ii. The assessment of corporate project performance is necessary to identify better processes in the execution of future projects by the management control systems. This allows for an optimal control system for management. iii. The study also recommends that to increase organizational innovation, the development and improvement of the top management of a company should be accompanied by leadership features and management control elements. iv. Management control systems may demand a lot of time and resources from the management; therefore, managers should prioritize where they can spend their time and resources. Performance-driven conduct (i.e., goal-oriented behaviour) among managers and other employees is essential to effective management control. 5.2 Contribution to Knowledge This study examined the link between management control systems and organizational performance in the contextual effect of a belief control system, a boundary control system, a diagnostic control system and an interactive control system. Companies are pushed to establish business models to handle their strategic uncertainties and risks in their business settings in today's competitive and complicated global economy. The role of the management control systems (MCS) in creating competitive advantage by continuously rejuvenating organisational survival and growth in these complex and uncertain 156 environments cannot be over-emphasized. The study demonstrates that the management control system is made up of tools and procedures that managers employ to ensure that the organization responds quickly to change, lowers costs and improves safety, and ensures that employee actions and decisions are in line with the company's strategies and goals. Unquestionably, the management control system is a crucial instrument for businesses to use to increase productivity and competitiveness via cost-cutting, cohesiveness, and quick responses to changing external conditions. 5.3 Suggestions for Further Study For future research, the following recommendations have been made: i. This study examined formal control systems. The implementation of informal control systems (shared belief, normative behaviours and values), social relationships, socialisation processes, and the dependence on autonomy demand more empirical studies that deepen academic knowledge of the management control system. ii. In other large service organizations, management system practices studies are needed, mainly for banking and insurance firms, in order to generally frame the management control system policies. iii. A longitudinal study of a wider range of companies would be helpful to study how their decision-making, actions and performance management have affected the use of the management control system. 5.4 Limitation of Study It was only because every other organization has its own unique set of standards, values and cultural variables that the findings for others were limiting. The research focused only on gathering data via the use of structured questionnaires. 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Introduction 2. Literature Review 2.1 Resources-Based View (RBV) Theory 2.2 Management Control Systems 2.3 Organizational Performance 2.4 Empirical Review 3. Methodology 4. Research Results Hypothesis One: Hypothesis Two: Hypothesis Three: Hypothesis Four: 4.1 Discussion of Findings 5. Conclusion 5.1 Recommendations 5.2 Contribution to Knowledge 5.3 Suggestions for Further Study 5.4 Limitation of Study References