Abstract:

This study aims to suggest a methodology to develop a balanced and interactive management control system which combine formal and informal processes and promotes both efficiency and innovation in organizations. The paper has a theoretical nature. Based on an extensive literature review, it articulates contributions from entrepreneurship theory, namely those related with entrepreneurial orientation, and management accounting theory, more specifically concepts and instruments from Management Control Systems (MCS) assuming an integrative and analytical framework. The paper integrates the domains of entrepreneurship and management accounting, presenting a methodology to design MCS which promote both efficiency and innovation in organizations. One major contribution will be the creation of management accounting knowledge in an entrepreneurial context. Moreover, the findings may be used as input for future research. From a practical point of view, the model can facilitate entrepreneurial behavior, considering the multidimensionality of such concept.  This study contributes to theoretical development since it fulfils a gap in literature, namely the lack of research that integrates the domains of entrepreneurial orientation /entrepreneurship and management accounting. It, also contributes in developing a richer understanding of the role of management control in corporate entrepreneurship. Furthermore, the implementation of this model could be a key mechanism through which entrepreneurial orientation is developed and implemented to accomplish favorable firm performance.