The effects of interactive control system and team identity on team performance: An experimental study

Purpose Team performance frequently is not reached because of motivation losses. The individual identified motivation best fits in team contexts. However, management control systems research has mainly focused on the external motivation. This chapter analyses how identified motivation and team performance can be enhanced through the interactive use of management control systems and the team identity. Methodology An experimental study is conducted among 144 postgraduate students. We manipulate the interactive use of management control systems and the team identity. We controlled its effects on team members’ motivation and performance. Findings The results show an indirect effect of the interactive control systems on team performance via team members’ identified motivation. Furthermore, the effect of team identity on team performance is also mediated by the identified motivation. Practical implications Managers can increase employees’ motivation by using the control information interactively. Controls focused on socialisation processes and shared values best fit with collaborative environments. Originality/value of chapter The results provide empirical support for the recent calls about the effect of interactive control systems at individual levels. Despite the considerable attention to the relation between the design of management control systems and team performance, this chapter provides empirical evidence of the positive relation between the style of use of management control systems and individual behaviour in team-based settings.