Abstract

It is argued that service firms’ control systems need to change throughout the life cycle stages to meet the
varying needs of management. The challenge to most service organizations is to address their unique
characteristics which had been identified to cause difficulties in controlling quality, measuring performance and
controlling costs. Despite this challenge, a review of the literature suggests that the organizational life cycle
variable is more researched in organizational studies, compared to Management Control Systems (MCS) studies.
To fill in the gap, this study is undertaken to gain understanding of the MCS in mature and growing service firms.
A survey methodology was employed. Questionnaires were administered to financial controllers of service
organizations operating in Australia. Using t tests and multiple regression analysis, the results indicate that, mass
service and mature firms place greater emphasis on more bureaucratic form of MCS as compared to professional
service and growing firms.

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