Managing innovation for long-term sustainability: a capability perspective from management control research

This study examines the organizational capabilities through which complementary management control system (MCS) configurations may support sustained innovation and contribute to long-term organizational sustainability. Drawing on the Resource-Based View (RBV), dynamic capability perspective, and MCS package theory, the study synthesizes fragmented evidence on management control and innovation at the organizational capability level. Based on a systematic literature review of 78 empirical studies published between 2000 and 2026, the review shifts attention from individual management control practices to higher-order organizational capabilities. Four recurring capabilities are identified: strategic alignment, organizational learning, organizational integration, and organizational adaptability. These capabilities enable organizations to align innovation with strategic priorities, develop and share knowledge, coordinate expertise, and adjust responses as conditions evolve. Building on this synthesis, the study develops an MCS-grounded capability framework that positions capability development as a potential mechanism through which complementary management control practices acquire innovation relevance. The synthesis also indicates that these capabilities may involve both complementarities and trade-offs, with their contribution to sustained innovation depending on how MCS configurations balance competing organizational demands across innovation and environmental contexts. The framework provides an evidence-informed basis for understanding how complementary MCS arrangements may support sustained innovation, organizational continuity, and long-term sustainability.