ABSTRACT: The goal of this research was to investigate the role of information systems
(IS) in helping organizations to address the challenge of achieving a trade-off between
exploitative and exploratory management control activities. The relationship between IS
and management control activities is complex and stems from different theoretical
backgrounds. We adopted a grounded theory approach to offer an integrative lens on
this multi-faceted issue. Through the study of information systems for governance, risk
management, and compliance (GRC IS) as a recent practice-driven initiative to establish
the means for balancing exploitative and exploratory management control activities, we
developed a grounded model of the relationship between IS and management control
activities. Our model highlights the ways in which GRC IS serve as a catalyzer for
establishing balanced management control systems that enable managers to simultaneously exploit and explore richer management control information.