Management control, uncertainty, and performance in biomedical research in universities, institutes and companies

• Published in: Journal of engineering and technology management 1997-09, Vol.14 (3), p.223-257
• Main Authors: Omta, S W F, de Leeuw, A C J
• Format: Article
• Language: English
• Subjects: Biomedical research; Colleges & universities; Management control; Management controls; Medical research; R&D; Research & development; Studies; Uncertainty
• ISSN: 0923-4748; 1879-1719
• DOI: 10.1016/S0923-4748(97)00018-0

This paper surveys the relationships between management control, uncertainty and performance in biomedical research. It starts from the contextual variation, stemming from differences in objectives and goals, profit orientation and level and sources of uncertainty between universities, institutes and companies. The study consists of in-depth interviews and questionnaire surveys of R&D directors, institute directors, biomedical professors and their senior scientific staff. Confirming evidence has been found for the thesis, that a fundamental association exists between management control and performance, dividing high from low performers. Our results indicate that the difference in uncertainty between basic research, applied research and industrial R&D is not as high as generally assumed. It is not primarily the uncertainty of the research process itself, but the uncertainty in relation to the task environment that counts. Developmental research has gradually become more uncertaint, because of the high costs of failure. Only the best pharmaceutical companies have adapted their control systems to this level of uncertainty. An incremental strategy seems more successful than a radical one in the short run. However, a company which puts too much emphasis on incrementation may find itself below the critical mass for keeping up the innovative potential in the long run.