Organizations under great pressure to deliver value, believe that Management Control Systems (MCS) can help them in this task. MCS research has been done regarding design criteria, purposes, types and factors that influence the adoption or use, but less is known about MCS impact in the organizational capabilities that trigger performance. The research question is: What is the impact of MCS use in generating capabilities of Entrepreneurial Orientation and Learning Orientation in firms. The hypothesized relationship was supported by evidence from a study of 644 firms in Mexico. The main findings show that the type of MCS use is related to the capabilities of EO & LO, independently of its size or industry; and somehow contrary to theory all relationships are positive. Resource-based-theory (RBT) (Barney, Ketchen, & Wright, 2011) and management control literature (Simons, 1995; Vandenbosch, 1999) are used to contextualize and explain the MCS’ role and relationship with firm capabilities.
