This paper reviews research that studies the relationship between mana
gement control systems (MCS) and business strategy. Empirical research
studies that use contingency approaches and case study applications a
re examined focusing on specific aspects of MCS and their relationship
with strategy. These aspects include cost control orientation, perfor
mance evaluation and reward systems, the effect of resource sharing, t
he role of MCS in influencing strategic change and the choice of inter
active and diagnostic controls. More contemporary approaches to the re
lationship between performance measurement systems and strategy are al
so considered It is concluded that our knowledge of the relationship b
etween MCS and strategy is limited, providing considerable scope for f
urther research. A series of future research questions is presented. (
C) 1997 Elsevier Science Ltd.