Controlling the Uncontrollable

Sammanfattning

This thesis examines how a company's use of the forecasting process impacts the interplay between control and innovation. The study was conducted as a qualitative case study of a digi-physical company working extensively with innovation. Our theoretical framework was based on Simons' (1995) conceptualizations of interactive and diagnostic control as well as the later research within management control systems and innovation. In line with previous research, our study revealed that the combination of interactive and diagnostic use of the forecasting process enabled the company to establish control while still pursuing innovation. Our study contributes to the area of research by suggesting that horizontal interactive use of the forecasting process is an important feature to consider when pursuing innovation. We further contribute by suggesting that resource allocation within an ambidextrous firm seems to be a decisive factor when choosing between exploration and exploitation.