Developing an Alignment Model of Management Control Systems and Strategy based on Dynamic Capability Approach (Case study: Iranian Medicine Cooperates Listed on the Stock Exchange)

The research is to broaden the knowledge about the relationship between management control systems and the organization’s strategies in order to design more effective control systems. Since in the current study, the strategy conceptualization is formed in the organizational capabilities’ level –not in the level of strategic choices- the main purpose of the research is to identify suitable control systems for dynamic capabilities development.

Regarding to the main purpose of the study, positivist paradigm, in general, and the contingent approach, in particular, are used and the cross-sectional survey research strategy is developed to examine the relationship between strategy and control system.

The results showed that in dynamic environments, the relational control systems have a positive relationship with organizational dynamic capabilities, organizational capabilities and organizational performance. Moreover, the dynamic tension resulting from simultaneously and equally diagnostic and interactive usage of control systems in dynamic environments has a significant positive relationship with organizational dynamic capabilities, organizational capabilities and organizational performance. Additionally, control system via dynamic capabilities has an effect on formation and development of organizational capabilities and the system could modify the organizational performance through the processes of dynamic capabilities and organizational capabilities development