What is the relationship between the interactive use and artifacts of management control?
DOI:
https://doi.org/10.14392/asaa.2026190103Keywords:
Management Control System, Diagnostic Use, Interactive Use, ForecastAbstract
I. Objective: This study examines the duality of management control system (MCS) use, as proposed by Simons (1995), by analyzing the relationship between the diagnostic and interactive uses of management controls, particularly in volatile contexts such as those found in emerging economies. The focus is on the relationship between each planning and control artifacts intended for diagnostic use and interactive use activation. II. Method: The study was conducted with 146 organizations, which were segmented by size. Data were collected via SurveyMonkey and analyzed using structural equation modeling to assess the relationships between control artifacts and the different interactive uses of the MCS. III. Results: The results indicate that interactive use does not occur in isolation, but rather depends on prior functional structuring of diagnostic use. The availability of the base forecast was associated with a greater potential for the interactive use of the control system within the budget control process. It was also central to stimulating and updating strategic thinking. IV. Contributions: The main contribution of this research lies in demonstrating empirically that traditional planning and control artifacts are prerequisites for interactive use. Furthermore, the specific association between artifacts and types of use fills a significant gap in the management control literature. V. Impact: The results suggest that interactive use of controls requires a solid diagnostic foundation structured by strategic planning, budgeting, and investment control. Additionally, budget revisions based on the base forecast trigger strategic discussions and organizational learning.
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