Interrelating material flow cost accounting with management control systems to introduce resource efficiency into strategy

Abstract In this study, we examine the goal of encouraging corporate strategy to adopt a more efficient and sustainable use of natural resources. Material flow cost accounting (MFCA), with its flow-based view, is able to support the formulation of a resource-efficient strategy. However, such goals as resource efficiency can only be achieved if corporations commit themselves to these targets on a strategic level and transfer them to all corporate levels using management control systems (MCS). The four levers of MCS developed by Simons (1995) adopt a key role in this implementation process. We contribute to literature by highlighting that such methods as MFCA require continuous development toward an increased interrelation with MCS, particularly with the four levers of control (LOC), such that the underlying goal of resource efficiency can become part of corporate strategy. Therefore, in a systematic literature review, we analyze how far MFCA and its direct antecedent approaches currently address the LOC. For this purpose, we analyze the contents of 82 studies and derive nine salient issues that are relevant to the interrelation aspect. To guide future research, we moreover ask: What further conceptual developments of MFCA would increase the focus on the LOC? On this basis, we develop a summarizing conceptual framework consisting of five stages. Because this research approach can also be transferred to other methods that aim for further important economic, environmental, and social objectives, we purposefully highlight the course toward sustainable development.