Competitive Edge in Crisis: The Role of MCS in Managing Environmental Disruptions

Abstract

This proposed study aims to examine the role of Management Control Systems (MCS) as a strategic resource for sustaining competitive advantages during environmental crises. In today’s volatile business environment, organizations face numerous challenges from economic downturns, political instability, and natural disasters. These crises create uncertainty, making it difficult for companies to maintain or improve their competitive position. This research explores how MCS can mediate the relationship between environmental crises and competitive advantage by providing structure, adaptability, and decision-making support. It suggests that MCS, through tools like performance measurement, employee empowerment, and standardized procedures, help organizations maintain strategic alignment and foster innovation. A questionnaire-based survey will be conducted to gather insights from top managers responsible for MCS design and implementation. The survey will focus on five key dimensions of MCS: employee empowerment, visual performance measurement, inventory tracking, strategic reporting systems, and standardized work. By investigating these aspects, the study aims to provide a deeper understanding of how MCS can support organizations in navigating environmental disruptions and securing long-term success.

Keywords: Management Control Systems (MCS), Competitive advantages, Environmental crises

DOI: 10.7176/EJBM/17-1-11

Publication date: February 25^th 2025