In hospitals context, Abernethy and Lillis (2001) argued that the decision to delegate
both clinical and financialmanagement to clinical units will be influenced by the cognitive and coordinative demands imposed by a strategic focus on service innovation. These demands are likely to be bestmet by increasing the autonomy granted to clinical units over output and resourcemanagement decisions.They argued that hospitals that do not pursue service innovation face less diversity and changes in their clinical mix, have fewer information requirements, and thus, may not face the information constraints associated with a centralized structure.