Abstract
The purpose of the study is to study whether management accounting and control 
Introduction

Background
In the old economy, to develop a sustainable competitive advantage (hereafter referred to as SCA) firms had a choice between three generic strategies in their attempts, namely cost leadership, market differentiation, and niche orientation (Porter 1985) . In the new economy which is characterised by properties such as globalisation, intangibility, and inter-connectivity, pharmacy business organisations are required to . ICOI-2018 One popular approach used to understand competitive dynamics is the resourcebased view (hereafter referred to as RBV) of the firm. According to this view, only those resources that are valuable, rare, hard to imitate, and cannot be substituted provide a sustainable competitive advantage (hereafter referred to as SCA) ( Open Innovation companies needed to combine internal research with external ideas and then needed to deploy those ideas both within their own business and also through other companies' businesses (Chesbrough, 2007) . The management accounting and control systems (MACS) practice is predicted to be a useful framework to link these technical decisions to economic outcomes, it also has value in understanding how companies of all sizes can convert innovation potential into economic value.
Background
The economic value of an innovation remains latent until it is commercialized in some way, and the same innovation commercialized in two different ways will yield different returns (Chesbrough, 2007) . Here, accounting and innovation managers must expand their perspectives to find an appropriate MACS practice to capture value from that innovation. If the managers fail to do so, these innovation will yield less value to the firm than they might have yielded otherwise. If others outside the firm uncover a better MACS practice, they may realize more value than would the firm that originally discovered the innovation.
Background
MACS is a process to assure that resources are obtained and used effectively and efficiently to achieve the organization's objectives (Anthony, 1965). Simons (1995) views MACS as the way of senior managers to successfully implement their intended strategies and in conjunction with other forms of controls to achieve some goals [6] . MACS within open innovation is to create a mixture of the rigid behaviour that MACS provide with extensive communication and sense of freedom that opens innovation requires therefore achieve the sustainability competitive advantage. ICOI-2018 Jackson, Hitt & DeNisi (2003) argue that in any competitive landscape, intangible resources are likely to produce a SCA. Intellectual capital (IC) is considered to be one of those resources. IC as the knowledge, skill, and technologies used to create a sustainable competitive advantage for companies (Edvinsson, 1999) and encompasses the access to and use of all employees' knowledge and applied experience, and the organizational structure, technology, and professional systems within a firm. These elements translate into competitive advantage and monetary gains (Gratton and Ghoshal, 2003).
Background
Open innovation is predicted to be enriching the company's intellectual capital through the integration of external knowledge sourcing, the latter to earning profits by bringing ideas to the market and selling intellectual property (Michelino and Cammarano, 2014). 
Literature Review

Management accounting and control systems
Management accounting control systems (MACS) are systems for influencing human behaviour within the organization [9, 12] . MACS is defined broadly as a system conveying useful information to help managers in decision-making process to achieve desired organisational goals efficiently and effectively (Anthony & Govindarajan 2001; [12, 15] ). The definition of MACS embraces both formal and informal 'control package' (Otley, 1980, [15] ). As a result, MACS involve both personal (Merchant 1985) , clan control (Ouchi 1980) and performance measurement systems in general, combining both financial and non-financial information. Hansen and Mowen (2000, p. 825) define MACS as an information system that produces outputs using inputs and processes needed to achieve specific management objectives. MACS encompass the following areas: planning, budgeting, responsibility centres, cost management, decision-making, management control, performance measurement, and compensation (Anthony and Govindarajan, 2001). ICOI-2018 MACS also have many characteristics which influence their use. For example, management controls may be formal or informal [12] . In any case, the presence, the use or absence of MACS significantly influences the actions and decisions carried out within an organisation (Anthony and Govindarajan, 2001). In this research, MACS are not defined by their technical design features. They are defined by how managers use these systems for decision-making process. Simons (1995) differentiate the use of MACS into interactive and diagnostic system.
Management accounting and control systems
The early empirical research on the diagnostic role showed that MACS can shape the organizational change in manufacturing industry (Burchell et al. 1980 ) and later research is on the interactive style of use of management control systems in the formulation and implementation of strategic change (Abernethy & Brownell, 1999) in the health services industry.
Open innovation (OI)
Open innovation means that companies should make much greater use of external domains emphasise the need to better understand the role of MACS indicators in the strategic context of OI practices. Our study adds to such understanding by exploring how managers in pharmaceutical company work with MACS to achieve SCA. Brooking (1996) 
Intellectual capital (IC)

Sustainable competitive advantage
According to Amit and Schoemaker (1993) the RBV considers firms as bundles of resources heterogeneously distributed across firms, and that resource differences remain over time. Barney (1991) stresses that resources that are valuable, rare, difficult to imitate, and, moreover, non-substitutable, almost certainly lead to the achievement of sustainable competitive advantage, that cannot be copied and adopted by competitors. Resources include different components that can be utilised to apply wealthcreating strategy. These might be: (a) specific physical assets, (b) organisational assets, (c) human resources, and (d) competencies (Eisenhardt and Martin, 2000).
Sustainable competitive advantage
Day (1994) argues that capabilities create a link between resources and allow their deployment. Moreover, dynamic organisational capabilities illustrate the ability of an organisation to implement repeatedly, or replicate, productive activities that encourage organisation's capacity to generate value through influencing the transformation ICOI-2018 of inputs into outputs (Teece, Pisano and Shuen, 1997). Market orientation, organisational learning, market responsiveness, entrepreneurship, and innovativeness are recognised as primary capabilities to gain SCA and create market change. However, although each capability is capable to positively contribute, it is not sufficient to develop competitive advantage. Market orientation is regarded as a common way for satisfying market demand and originating superior value for customers. It is described as a complex of beliefs that evaluates long-lasting profit taking into great consideration firstly the customers' interests and secondly that of stakeholders'. Narver and Slater (1990) and Kohli and Jawoski (1990) discuss the importance of market orientation is clearly link it with business performance.
Sustainable competitive advantage
Hurley and Hunt (1998) argue that innovativeness is the firm's positive attitude toward new ideas, processes and products, and its focus on innovation. Moreover, they stress that innovative firms can easily gain competitive advantage and consequently achieve high levels of performance.
Methodology
In the field of research, the term method represents the specific approaches and procedures that the researcher systematically utilizes that are manifested in the research design, sampling design, data collection, data analysis, data interpretation, and so forth. This study use literature review as the methodology. The literature review represents a method because the literature reviewer chooses from an array of strategies and procedures for identifying, recording, understanding, meaning-making, and transmitting information pertinent to a topic of interest. Moreover, as asserted by Onwuegbuzie, Leech, and Collins (2011), conducting a literature review is equivalent to conducting a research study, with the information that the literature reviewer collects representing the data. Open to external capabilities and resources would make similarly large, long-term investments in order to compete. Innovation is not only closed, centralized, internal R&D used anymore, by do anything, do everything internally, from tools and materials, to product design and manufacturing, to sales, service, and support but more openly ICOI-2018 identifying and accessing external knowledge and technology to generating internal knowledge.
Discussions
Open Innovation needed to combine internal research with external ideas and then deploy those ideas both within their own systems and also through other companies'
Discussions
systems. The key for these firms is to figure out what necessary missing pieces should be internally supplied and how to integrate both internal and external pieces together into systems and architectures. In this case, this study assume that MACS is a useful framework to link these technical decisions to economic outcomes. The effective use of MACS value in understanding how companies of all sizes can convert innovation potential into economic value.
Discussions
The economic value of a technology remains latent until it is commercialized in some way, and the same innovation commercialized in two different ways will yield different returns. In some instances, an innovation can successfully employ MACS that already familiar to the firm. Other times, another company will have MACS that can make use of the innovation via licensing, and 'hires' the technology that it will in turn commercialize.
Discussions
The use of MACS in open innovation expected to function as follows: 1) To articulate the value proposition, that is, the value created for users by the offering based on the innovation; 2) To identify a market segment, that is, the users to whom the innovation is useful and the purpose for which it will be used; 3) To define the structure of the firm's value chain, which is required to create and distribute the offering, and to determine the complementary assets needed to support the firm's position in this chain; 4) To specify the revenue generation mechanism for the firm, and estimate the cost structure and target margins of producing the offering, given the value proposition and value chain structure chosen to other firms, or through launching new ventures that exploit the technology in new business arenas.
Is there any relationship between management accounting
and control systems and sustainable competitive advantage? ICOI-2018 control systems to capture how accounting can be used as a learning machine in the formulation and implementation of strategic change in hospitals. In this study, the interactive and diagnostic classification of use of management control systems is adopted as a vehicle for upper management echelons to orient their faculty toward a more collegial or managerial style of operation.
Belief and boundary systems of LOC
Even though lever of control framework acknowledges elements of the value system 
Interactive use of control system
Interactive control systems are formal control systems used by managers to involve the subordinates in decision-making process, to debate on strategic uncertainties and However, it challenges, to a certain extent, research that suggests interactive MACS is not always used by top managers to favour open innovation, but it can constrain innovation in specific firms that follow certain innovation strategies [3] .
Diagnostic use of MACS
The diagnostic use of MACS represents the traditional feedback role as MCS are used on an exception basis to monitor and reward the achievement of pre-established goals based on programmed cybernetic processes (i.e., setting standards, measuring, analysis, and taking corrective actions) and on management by exception. Following a traditional mechanistic notion of control, a diagnostic use provides motivation and direction to achieve goals by focusing on and correcting deviations from pre-set standards of performance.
Diagnostic use of MACS
According to Simons (1994 Simons ( , 1995 Simons ( , 2000 these systems are limit the chances of deviation from pre-set outcomes/behaviours, monitor and reward achievement of pre-specific goals through the review of key performance or key success factors. A diagnostic use of management accounting control systems tends to negatively influence certain organizational capabilities such as market orientation, entrepreneurship, innovativeness and organizational learning [11] . 
Is there any relationship between open innovation and intellectual capital?
In a world of powerful forces that rapidly disseminates useful knowledge, the mind-set toward Intangible assets changes greatly. One implication of Open Innovation is that companies must increase the 'metabolic rate' at which they access, digest, and utilize intellectual capital. Companies cannot treat their intellectual capital as static; they must treat it as fundamentally dynamic. A company cannot inventory innovation advances on the shelf, for the day when they may prove valuable. Open Innovation companies use licensing extensively to create and extend markets for their innovation. And the faster the innovation gets out of the lab, the sooner the researchers will learn new ways to apply, leverage, and integrate that technology into new offerings (Chesbrough,
2007).
Competitors often find ways of inventing around a firm's intellectual capital, which allows them to enter the market very quickly, even when the firm seeks to exclude rivals from using its ideas. The costs for moving too late are much greater than they are for moving too soon. If company err on the side of premature cannibalization, they lose some potential profit company might have been able to eke out otherwise. If company err on the side of delay, the costs are deeper and longer lasting. Company will lose market share and must confront stronger competitors, who now receive additional resources from company former customers Chesbrough, 2007).

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