A management control perspective an industrial pharmaceutical R&D

The paper aims at establishing a control mix of system-technical and socio-dynamic factors for successful innovative and industrial performance in pharmaceutical industry. The different entities and relations in pharmaceutical innovation are described using the double unity cell model. Management control is operationalized using the system theory of control and the derived concepts of organizational flexibility and control capacity. The empirical study embraces structured interviews with 22 R&D directors and questionnaires sent to 38 heads of research departments of 14 pharmaceutical companies, focusing on their views and judgements regarding different aspects of management control. Tentatively, it is concluded that the study supplies confirming evidence for the thesis in socio-dynamic literature that stimulating and rewarding environments are needed to enhance R&D productivity, especially if they are embedded in a coherent pattern of other socio-dynamic and system-technical factors