Management control systems in complex settings. Emerging research and opportunities

Complexity science has emerged across different research fields in recent years. In business management, the term complexity generally evokes a business context involving problems in decision-making, direction, measurement and evaluation, both by managers and stakeholders. On the one hand, complexity implies environmental uncertainty, change, dynamism, heterogeneity. These characteristics can be ascribed to the contemporary competitive environment. Nowadays, firms have to face challenges driven by a variety of factors: changes in manufacturing and operations, the rise of emergent markets and developing economies, the long-lasting effects of the 2008 financial crisis, evolutions in customer tastes and preferences, relations with buyers and suppliers, rapid innovations, variations in the actions of competitors and growing rivalry, deregulation and globalization issues, the diffusion of information technologies. On the other hand, firms can also be internally viewed and analyzed as complex systems. Firms must respond to the expectations of a range of multiple stakeholders. Product life cycles are shorter and factors such as knowledge, innovation and intangible assets are increasing their importance. Customer loyalty and reputation have become major concerns. Overall, complexity influences organizational structures, and makes planning and control more difficult. n such complex settings, firms’ efforts and abilities are oriented to formulate and implement successful business strategies, with the purpose of creating value for their customers and to differentiate from their competitors. In turn, appropriate organizational devices, such as organizational design, effective manufacturing processes, and MCS must support business strategies. In particular, complex settings represent challenging contexts, which are likely to require new approaches to control and MCS. This book depicts complexity theory issues and focuses on MCS as tools that can play a role in coping with complexity concerns to support the attainment of strategic objectives. The objective is to provide theoretical insights and managerial implications for managing complexity within and across organizations.