The mediating effect of blue ocean strategy on the relationship between management control system and competitive advantage

Authors

  • Mustapha RAZZOUKI Sultan Moulay Slimane University, Faculty of Economics and Management, Laboratory of Multidisciplinary Research in Economics and Management (LARPEG), Beni Mellal, Morocco Author
  • Rachid ZAMMAR Mohammed V University in Rabat, Morocco Author
  • Adil GAROHE Mohammed V University in Rabat, Morocco Author
  • Karima SALAH-EDDINE Mohammed V University in Rabat, Morocco Author

DOI:

https://doi.org/10.56294/dm2025482

Keywords:

Management control system, ocean blue strategy, competitive advantage, PLS- SEM

Abstract

This research examines the impact of management control systems on the competitive advantage of industrial companies, with a focus on the role of the blue ocean strategy as a mediating variable in this relationship. To achieve these objectives, a quantitative methodology was employed. Data was gathered through a structured questionnaire distributed online via Google Forms, and the analysis was performed using Smart PLS Version 4 software. The sample consisted of 405 Moroccan industrial companies. The analysis revealed that management control systems significantly impact competitive advantage, and the blue ocean strategy mediates this relationship. Based on these findings, future research should explore various approaches to implementing blue ocean strategies and their effects on company performance.

References

1. D Abbasi Kamardi, A., Amoozad Mahdiraji, H., Masoumi, S., & Jafari-Sadeghi, V. (2022). Developing sustainable competi-tive advantages from the lens of resource-based view: evidence from IT sector of an emerging economy. Journal of Strategic Marketing. https://doi.org/10.1080/0965254X.2022.2160485

2. Acquaah, M. (2013). Management control systems, business strategy and performance: A comparative analysis of family and non-family businesses in a transition economy in sub-Saharan Africa. Journal of Family Business Strategy, 4(2), 131–146. https://doi.org/10.1016/j.jfbs.2013.03.002

3. Aliyu, N. S., Jamil, C. Z. M., & Mohamed, R. (2014). The Mediating Role of Management Control System in the Relation-ship between Corporate Governance and the Performance of Bailed-out Banks in Nigeria. Procedia - Social and Behavioral Sciences, 164, 613–620. https://doi.org/10.1016/j.sbspro.2014.11.154

4. Arjaliès, D. L., & Mundy, J. (2013). The use of management control systems to manage CSR strategy: A levers of control perspective. Management Accounting Research, 24(4), 284–300. https://doi.org/10.1016/j.mar.2013.06.003

5. Badawy, M., El-Aziz, A. A. A., Idress, A. M., Hefny, H., & Hossam, S. (2016). A survey on exploring key performance indicators. Future Computing and Informatics Journal, 1(1–2), 47–52. https://doi.org/10.1016/j.fcij.2016.04.001

6. Barros, R. S., & Ferreira, A. M. D. S. da C. (2023). Management control systems and innovation: a case study grounded in institutional theory. Journal of Management Control, 34(1), 109–133. https://doi.org/10.1007/s00187-023-00351-4

7. Braglia, M., Gabbrielli, R., Marrazzini, L., & Padellini, L. (2022). Key Performance Indicators and Industry 4.0 - A struc-tured approach for monitoring the implementation of digital technologies. Procedia Computer Science, 200, 1626–1635. https://doi.org/10.1016/j.procs.2022.01.363

8. Burns, John & Nixon, William. (2005). Management Control in the 21st Century. Management Accounting Research. 16. https://doi.org/10.1016/j.mar.2005.07.001

9. Christodoulou, I., & Langley, P. A. (2020). A gaming simulation approach to understanding blue ocean strategy development as a transition from traditional competitive strategy. Journal of Strategic Marketing, 28(8), 727–752. https://doi.org/10.1080/0965254X.2019.1597916

10. Crutzen, N., Zvezdov, D., & Schaltegger, S. (2017). Sustainability and management control. Exploring and theorizing control patterns in large European firms. Journal of Cleaner Production, 143, 1291–1301. https://doi.org/10.1016/j.jclepro.2016.11.135

11. Dávila, A., Derchi, G. B., Oyon, D., & Schnegg, M. (2023). External complexity and the design of management control systems: a case study. Management Accounting Research, 63. https://doi.org/10.1016/j.mar.2023.100875

12. Dias, A. S. M. E., Abreu, A., Navas, H. V. G., & Santos, R. (2020). Proposal of a holistic framework to support sustainability of new product innovation processes. Sustainability (Switzerland), 12(8). https://doi.org/10.3390/SU12083450

13. Duréndez, A., Ruíz-Palomo, D., García-Pérez-de-Lema, D., & Diéguez-Soto, J. (2016). Management control systems and performance in small and medium family firms. European Journal of Family Business, 6(1), 10–20. https://doi.org/10.1016/j.ejfb.2016.05.001

14. Einhorn, S., Fietz, B., Guenther, T. W., & Guenther, E. (2024). The relationship of organizational culture with management control systems and environmental management control systems. Review of Managerial Science, 18(8), 2321–2371. https://doi.org/10.1007/s11846-023-00687-0

15. Fallah, M. H., & Lechler, T. G. (2008). Global innovation performance: Strategic challenges for multinational corporations. Journal of Engineering and Technology Management - JET-M, 25(1–2), 58–74. https://doi.org/10.1016/j.jengtecman.2008.01.008

16. Farida, I., & Setiawan, D. (2022). Business Strategies and Competitive Advantage: The Role of Performance and Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 8(3). https://doi.org/10.3390/joitmc8030163

17. Felício, T., Samagaio, A., & Rodrigues, R. (2021). Adoption of management control systems and performance in public sector organizations. Journal of Business Research, 124, 593–602. https://doi.org/10.1016/j.jbusres.2020.10.069

18. Flamholtz, E.G., Das, T.K., & Tsui, A.S. (1985). Toward an integrative framework of organizational control. Accounting Organizations and Society, 10, 35-50.

19. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with un-observable variables and measurement error. Journal of Marketing Research, 18(1),39–50.

20. Freidank, CC., Haldma, T. & Velte, P (2014). Corporate governance reforms and management control. Journal Manag Control 25, 77–79. https://doi.org/10.1007/s00187-014-0199-1

21. Gomez-Conde, J., Lopez-Valeiras, E., Malagueño, R., & Gonzalez-Castro, R. (2021). Management control systems and innovation strategies in business-incubated start-ups. Accounting and Business Research, 53(2), 210–236. https://doi.org/10.1080/00014788.2021.1986365

22. Gomez-Conde, J., Lopez-Valeiras, E., Rosa, F. S., & Lunkes, R. J. (2023). The effect of management control systems in managing the unknown: Does the market appreciate the breadth of vision? Review of Managerial Science, 17(8), 2769–2795. https://doi.org/10.1007/s11846-022-00601-0

23. Gschwantner, S., & Hiebl, M. R. W. (2016). Management control systems and organizational ambidexterity. Journal of Management Control, 27(4), 371–404. https://doi.org/10.1007/s00187-016-0236-3

24. Hair, J. F., Jr., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM). Los Angeles, CA: Sage Publications.

25. Hajar, Mohammed & Alkahtani, Ammar & Nasir, Daing & Darun, Mohd Ridzuan & Al-Sharafi, Mohammed A. & Tiong, Sieh Kiong. (2021). The Approach of Value Innovation towards Superior Performance, Competitive Advantage, and Sustainable Growth: A Systematic Literature Review. Sustainability. 13. 1-32. https://doi.org/10.3390/su131810131

26. Handoyo, S., Suharman, H., Ghani, E. K., & Soedarsono, S. (2023). A business strategy, operational efficiency, ownership structure, and manufacturing performance: The moderating role of market uncertainty and competition intensity and its implication on open innovation. Em Journal of Open Innovation: Technology, Market, and Complexity. https://doi.org/10.1016/j.joitmc.2023.100039

27. Haraguchi, N., Cheng, C. F. C., & Smeets, E. (2017). The Importance of Manufacturing in Economic Development: Has This Changed? World Development, 93, 293–315. https://doi.org/10.1016/j.worlddev.2016.12.013

28. Haseeb, M., Lis, M., Haouas, I., & Mihardjo, L. W. W. (2019). The mediating role of business strategies between management control systems package and firms stability: Evidence from SMEs in Malaysia. Sustainability (Switzerland), 11(17). https://doi.org/10.3390/su11174705

29. Hosseini, A. S., Soltani, S., & Mehdizadeh, M. (2018). Competitive advantage and its impact on new product development strategy (Case study: Toos Nirro technical firm). Journal of Open Innovation: Technology, Market, and Complexity, 4(2). https://doi.org/10.3390/joitmc4020017

30. Knauer, T., Silge, L., & Sommer, F. (2018). The shareholder value effects of using value-based performance measures: Evidence from acquisitions and divestments. Management Accounting Research, 41, 43–61. https://doi.org/10.1016/j.mar.2018.02.001

31. Langevin, P., & Mendoza, C. (2013). How can management control system fairness reduce managers’ unethical behaviours? European Management Journal, 31(3), 209–222. https://doi.org/10.1016/j.emj.2012.12.001

32. Langfield-Smith, K. M. (1997). Management Control Systems and Strategy: A Critical Review. Accounting, Organizations and Society, 207 - 232.

33. Langfield-Smith, K. (2007). A review of quantitative research in management control systems and strategy. In C. S. Chapman, A. G. Hopwood, & M. D. Shields (Eds.), Handbook of Management Accounting Research (1st ed., Vol. 2, pp. 753-783). (Handbooks of Management Accounting Research). Elsevier. https://doi.org/10.1016/S1751-3243(06)02012-8

34. Lewis, R. L., Sutton, N., & Brown, D. A. (2024). How senior managers use interactive control to manage strategic uncertainties: An attention-based view. Management Accounting Research, 62. https://doi.org/10.1016/j.mar.2023.100864

35. Lindič, J., Bavdaž, M., & Kovačič, H. (2012). Higher growth through the Blue Ocean Strategy: Implications for economic policy. Research Policy, 41(5), 928–938. https://doi.org/10.1016/j.respol.2012.02.010

36. Lohtander, M., Aholainen, A., Volotinen, J., Peltokoski, M., & Ratava, J. (2017). Location Independent Manufacturing – Case-based Blue Ocean Strategy. Procedia Manufacturing, 11, 2034–2041. https://doi.org/10.1016/j.promfg.2017.07.355

37. Madsen, D. Ø., & Slåtten, K. (2019). Examining the emergence and evolution of blue ocean strategy through the lens of management fashion theory. Social Sciences, 8(1). https://doi.org/10.3390/socsci8010028

38. Mahdi, O. R., Nassar, I. A., & Almsafir, M. K. (2019). Knowledge management processes and sustainable competitive advantage: An empirical examination in private universities. Journal of Business Research, 94, 320–334. https://doi.org/10.1016/j.jbusres.2018.02.013

39. Malmi, T., & Brown, D. A. (2008). Management control systems as a package-Opportunities, challenges and research directions. Management Accounting Research, 19(4), 287–300. https://doi.org/10.1016/j.mar.2008.09.003

40. Mariani, M. M., & Belitski, M. (2023). The effect of coopetition intensity on first mover advantage and imitation in innovation related coopetition: Empirical evidence from UK firms. European Management Journal, 41(5), 779–791. https://doi.org/10.1016/j.emj.2022.05.001

41. Martins, A., Oliveira, C., Silva, R., & Castelo Branco, M. (2023). Management Control Practices as Performance Facilitators in a Crisis Context. Administrative Sciences, 13(7). https://doi.org/10.3390/admsci13070163

42. Naranjo-Gil, D. (2016). The role of management control systems and top teams in implementing environmental sustain-ability policies. Sustainability, 8(4). https://doi.org/10.3390/su8040359

43. Nasereddin, A. Y. (2023). Impact of the Blue Ocean Strategy Dimensions in Achieving Competitive Advantage from the Perspective of Faculty Members. Information Sciences Letters, 12(6), 2685–2698. https://doi.org/10.18576/isl/120639

44. Pant, L. W., & Yuthas, K. (2001). Using the management control system to promote competitive advantage in organizations: Behavioral and sociological perspectives. https://doi.org/10.1016/S1474-7979(01)04072-8

45. Phan, T., Baird, K., Bhuyan, M., & Tung, A. (2023). The associations between management control systems, organisational capabilities and performance. Journal of Management Control, 34(4), 435–462. https://doi.org/10.1007/s00187-024-00365-6

46. Simons, R.A. (1990). The role of management control systems in creating competitive advantage: New perspectives. Accounting Organizations and Society, 15, 127-143.

47. Toldbod, T., & Laursen, L. N. (2024). Time and the sequential integration of management controls in open innovation between Unilever and its partners: A procedural perspective. Management Accounting Research. https://doi.org/10.1016/j.mar.2024.100901

48. Travaillé, D., & Naro, G. (2017). Management control facing the challenges of overall performance. Society and Business Review, 12(2), 175–199. https://doi.org/10.1108/sbr-11-2016-0065

49. Veríssimo, C., Pereira, L., Fernandes, A., & Martinho, R. (2024). Complex problem solving as a source of competitive ad-vantage. Journal of Open Innovation: Technology, Market, and Complexity, 10(2). https://doi.org/10.1016/j.joitmc.2024.100258

Downloads

Published

2025-01-01

Issue

Section

Original

How to Cite

1.
RAZZOUKI M, ZAMMAR R, GAROHE A, SALAH-EDDINE K. The mediating effect of blue ocean strategy on the relationship between management control system and competitive advantage. Data and Metadata [Internet]. 2025 Jan. 1 [cited 2024 Nov. 21];4:482. Available from: https://dm.ageditor.ar/index.php/dm/article/view/482