Internal contextual factors affect the organization’s strategic control process and its use of the four main components of
performance management: operating systems and procedures, organizational structure, organizational culture, and selection
and training and development. As an example, an organization with a relatively small size will face difficulties attaining the
minimum threshold needed to achieve economies of scale, which in turn will limit the organization’s ability to pursue a costbased
strategy. Additionally, the organization’s small size will impact the organizational structure (it is more likely to be
centralized) and its operating systems and procedures (they are likely to be informal).