Developing a Framework for Management Control Systems in Start-ups : How Management Control Systems can be used in fast-growing technology start-ups to support controlled growth

The purpose of this study was to find what appropriate Management Control Systems exist that can help fast-growing start-ups to achieve a controlled and healthy growth. We also studied how the control systems can be used together, and balanced between each other. To find appropriate control systems, we conducted a literature review of important factors for implementing management control, that ended with a tentative framework of control systems. After that, we conducted a multiple case study including several fast-growing technology start-ups to see how they use the collection of control systems in our tentative control framework, and analyzed what effect they have on the organization’s activities and how they balance between them. After the case study, a cross-case analysis was conducted were differences and similarities between the cases were analyzed and related to the theoretical concepts from the literature review. This led to conclusions regarding how start-ups tend to use and balance the control systems, which in turn led to the finalized control framework for fast-growing start-ups. The framework provides a set of control systems that start-ups can use that are relevant for supporting growth and managing the most common challenges that fast-growing start-ups face. By using different levers of control, the control systems complement each other and create a dynamic tension, which increases performance. For start-ups that are in a product development phase, the balance of the control systems is mostly on growth and innovation, which supports exploration of opportunities. However, there is still a little focus on control and efficiency to keep the organization focused. For start-ups with an already developed and commercialized product, the balance of control systems is more towards the middle. The most focus is put on growth and efficiency, with a little less emphasis on innovation and control. This is a way to keep an even balance between exploration of opportunities and exploitation of current resources.