Navigating between Growth and Operational Efficiency in Startups

Sammanfattning

The purpose of this thesis is to examine how startups use management control systems (MCS) to navigate between operational efficiency and growth. This is conducted through a single-case study of CapitalCo, a Swedish fintech startup, using interviews with employees from the case firm as well as internal documents to examine how MCS are designed and used in practice to navigate tensions. Our theoretical framework guides our analysis and is based on Simons' (1995) Levers of Control and the Dynamic Equilibrium Model within Paradox Theory (Smith & Lewis, 2011). In contrast to existing literature on startups, we suggest that formal MCS can be established from the outset, driven by founder experience and by necessities related to coordination and business model. We further contribute to research, showing that KPIs can act as a navigating tool, serving both a connective and activating role in navigating tensions. Building on that we identify the technological infrastructure as a facilitator, and automation and AI as the primary means of adapting to tensions. Finally, we suggest how this configuration of MCS allows startups to unleash human potential in navigating tensions.