Control Combinations in Marketing: Conceptual Framework and Empirical Evidence

Abstract

The topic of management control systems has received limited attention in the marketing literature. Though previous research has tended to view each organizational control in isolation, the authors argue that research should examine the simultaneous use of multiple controls. On the basis of previous work, a conceptual framework for combinations of controls is constructed with associated research hypotheses. Four alternative combinations or “systems” of controls are identified: (1) a traditional bureaucratic management control system with a primary emphasis on formal controls, (2) a clan system with a primary emphasis on informal controls, (3) a low control system, and (4) a high control system. The findings indicate that SBU characteristics and task complexity variables predict the type of system that is likely to be emphasized. In turn, the results indicate that the high control system is associated with highest job satisfaction followed sequentially by the clan, bureaucratic, and low control systems. The high control system also produced the lowest levels of person-role conflict and ambiguity. No significant relationship is found between the four systems and job performance. Study limitations and directions for future research are discussed.