The effect of strategic choices and management control systems on organizational performance in Iran

This research was conducted to study the effect of strategic choices and management control systems on organizational performance in small and medium-sized companies in Iran. In this article, contingency theory is used as the theoretical framework of the research. This is a quantitative study in terms of research type. The survey method has been used as a research strategy and data collection method. The main tool of data collection in the research is a standard questionnaire, which is adapted based on the questionnaire used in the research of Junkira et al. (2018). Smart pls software was used for data analysis. The results of the research show that more competitive forces cause the formation of the strategy chosen by organizations, however, contrary to what the theoretical foundations predict, those companies that operate in more competitive environments choose a cost leadership strategy instead of choosing a differentiation strategy. . The design and use of management control systems is influenced by the strategy chosen by the company. In addition, the use of contemporary management methods is associated with differentiation strategy. The choice of strategy and management control systems in the organization has a significant positive effect on organizational performance. In addition, those companies that combine the differentiation strategy with contemporary management practices perform better than the other companies studied.