Effects of using the management control system on individual performance with the intervenience of feedforward and organizational learning

This study aims to empirically examine the effects of using the management control system (MCS) on individual performance mediated by organizational learning. Complementarily, it evaluates the moderating effect of feedforward on the relationship between MCS use and organizational learning.

Structural equation modeling and mediation and moderation analyses were used in a sample of 194 managers from Brazilian companies listed in the Exame Magazine’s “Best and Biggest” ranking.

The results reveal that using the MCS from a cybernetic perspective contributes to organizational learning, contradicting theoretical arguments and empirical evidence that this hinders learning and that feedforward can strengthen this relationship, as long as it is in line with the way of using the MCS. A mediating effect of organizational learning on the relationship between MCS use and individual performance has also been confirmed.

The results demonstrate the effects of MCS use on individual performance and organizational learning by taking a taxonomy of cybernetic use and comprehensive MCS use as a basis. The results provide insights to managers by revealing that MCS use not only influences task performance through organizational learning but also tends to generate cooperative, persistent and initiative-taking behaviors.

The study provides an approach to the behavioral consequences of using the MCS (score-keeping use and comprehensive MCS use) and the role of specific cognitive and motivational mechanisms in individual performance from a multidimensional perspective (task-based, contextual and general).