The Efficiency of Management Control Systems: Does Implementing Management Control Systems Affect How Well a Company Performs?

Abstract

The research investigated the potential positive correlation between Management Control Systems with profitability and innovation. The research utilizes quantitative methodologies, using survey designs to administer a structured questionnaire to respondents at the headquarters of the Coca-Cola bottling company in Lagos, Nigeria. The location and firm were chosen by judgmental sampling, whereas the questionnaire was distributed through convenience sampling. The sample size of 109 respondents was determined using the Yamane (1967) approach from a population of 150 individuals selected randomly. After examining the collected data using linear regression and multivariate analysis, the study revealed Management Control Systems positively correlates with profitability and innovation. Based on these results, it is advised that businesses prioritize creating and deploying efficient management control systems (MCS) policies that expressly focus on improving profitability and stimulating innovation.