Knowledge Management in R&D Organizations: A Management Control System Approach

Studies of knowledge management in R&D organizations have largely focused on performance measurement (i.e. diagnostic control). This specific focus comes at the expense of a broader conception of management control systems and their relation to organizational goals and capabilities. Building on Simons' 'levers of control' framework, we explore how beliefs, boundary, diagnostic and interactive control systems combine to help specify and achieve the various and often conflicting objectives of knowledge management. We present a theoretical model explaining how beliefs and interactive systems work jointly to enhance knowledge exploration, while boundary and diagnostic systems work to enhance R&D efficiency and reliability, thus augmenting knowledge exploitation. We argue that these relationships will significantly influence how scholars study the use, characteristics and effectiveness of knowledge control systems, and will help guide R&D managers on the forms of control needed for different goals.