Strategic Change and Firm Performance: The Moderating Role of Internal Control

In the context of national supply-side reform, enterprises need to carry out effective strategic change. However, there are various risks in the process of strategic change, and well internal control system can ensure the effective implementation of the new strategy, and improve the performance of enterprises after the strategic change. Prior strategic management research pay more attention to strategy planning and ignore the strategic implementation and strategic performance, but internal control theory will ensure the effectiveness of strategic implementation as the highest goal. Therefore, combining internal control theory and strategic management theory, this paper analyzes the positive moderating role of internal control between strategic change and firm performance. We fmd that effective internal control mechanism can provide reasonable guarantee for strategic execution from three aspects: strategy consensus, strategy alignment and strategy control.