The role of diagnostic and interactive control uses in innovation

Müller-Stewens, Benedikt; Widener, Sally K.; Möller, Klaus; Steinmann, Jan-Christoph

doi:10.1016/j.aos.2019.101078

Cited by 73 publications

(172 citation statements)

References 88 publications

Supporting

Mentioning

131

Contrasting

Unclassified

Order By: Relevance

“…The t-tests demonstrated no significant mean differences, with the exception of the environmental training variable. Similar results have been observed in related research [47,48]. The second test was for common method bias, in which the first factor of the explained total variance (0.35) was less than 0.5 [9].…”

Section: Measurement Modelsupporting

confidence: 86%

Interactions among Environmental Training, Environmental Strategic Planning and Personnel Controls in Radical Environmental Innovation

et al. 2020

View full text Add to dashboard Cite

The purpose of this study was to analyze the effect of environmental training on the relationship between environmental strategic planning and personnel controls in radical environmental innovation. To collect the data, we designed a questionnaire for companies in the Brazil Stock Exchange (B3-Brazil, Bolsa, and Balcão). Data from 150 companies were analyzed using structural equation modeling and fuzzy-set qualitative comparative analysis (FsQCA). The results show that environmental strategic planning and personnel controls affect radical environmental innovation. The findings also show that environmental training impacts the relationship between environmental strategic planning and personnel controls in radical environmental innovation. The asymmetric approach reinforces this evidence and suggests that environmental training is a central element that leads to high radical environmental innovation. The study contributes to the literature by showing that environmental training assists in the management of radical environmental innovation by aligning individual and organizational objectives.

show abstract

Section: Measurement Modelsupporting

confidence: 86%

Interactions among Environmental Training, Environmental Strategic Planning and Personnel Controls in Radical Environmental Innovation

et al. 2020

View full text Add to dashboard Cite

show abstract

“…Of the four levers, the focus of the present study is on the role of interactive control in enhancing employee’s psychological empowerment and proactive behaviors for two reasons. First, there has been a greater emphasis in the literature on the relationship between the interactive and diagnostic use of MCS than on the interactive use alone (Bisbe et al , 2019; Grafton et al , 2010; Müller-Stewens et al , 2020). Second, prior studies indicate that the interactive use of MCS promotes searching and learning for strategy formation and innovation by facilitating dialogue between managers and subordinates (Bisbe and Otley, 2004; Ferreira and Otley, 2009; Gond et al , 2012; Simons, 1994b; Tessier and Otley, 2012), especially in uncertain environments (Simons, 1995) such as hospitals.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

The influence of an interactive use of management control on individual performance: mediating roles of psychological empowerment and proactive behavior

Matsuo

Arai

2021

JAOC

View full text Add to dashboard Cite

Purpose Although middle managers play important roles in forming strategies and generating innovation, few studies have explored the influence of management control systems (MCS) on employees’ behaviors or performance at the middle-management level. The purpose of this study is to examine the effect an interactive use of MCS has on individual performance at the unit level. Design/methodology/approach A longitudinal, multisource and multilevel survey was conducted among 373 nurses in 20 units at a Japanese public hospital. Findings The multi-level analyzes indicate that middle managers’ interactive use of MCS has a direct and indirect positive influence on individual performance, through proactive behavior, as well as through psychological empowerment and, subsequently, through proactive behavior. Research limitations/implications As the present study collected data from nurses at a Japanese hospital, it is necessary to conduct research in other countries using different occupations to verify the findings. Practical implications Organizations need to be aware that the interactive use of MCS can be an effective tool for empowering and motivating employees. Originality/value The present study contributes to the literature by clarifying the mechanisms of how the interactive use of MCS influences employees’ psychological and behavioral outcomes at the middle-management level.

show abstract

“…Some authors have emphasized that the combination of different uses of PMS could help organizations balance competing objectives. For example, M€ uller-Stewens et al (2020) identify that diagnostic control, aimed at ensuring that an organization is achieving its predefined objectives, can positively influence the efficiency of new product development processes in research and development (R&D)-intensive firms, whereas interactive control, aimed at stimulating opportunity-seeking behavior across persons and activities, can have a positive effect on creativity. Considering the interdependence between levers, Bedford (2015) concludes that diagnostic and interactive uses have joint effects on performance, but that these depend on the type of innovation being pursued.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Therefore, in this study, the diagnostic use of PMSs is regarded as a means to track progress toward goals, help monitor results and compare them to expectations. In doing so, it encourages the attainment of exploitative goals, such as improving existing product quality and current processes, by creating constraints, promoting continuous improvement through single-loop learning (Widener, 2007) and helping manage the innovation process (M€ uller-Stewens et al, 2020). Therefore, it is hypothesized that: H1a.…”

Section: Pms Uses and Exploitationmentioning

confidence: 99%

The effects of performance measurement system uses on organizational ambidexterity and firm performance

Mura

Micheli

Longo

2021

IJOPM

View full text Add to dashboard Cite

PurposeThis study aims to investigate how dynamic tensions between performance measurement system (PMS) uses enable organizations to achieve both exploitation and exploration and enhance firm performance.Design/methodology/approachThe authors collected survey data on 153 Italian companies. Scales for each construct were validated through an exploratory factor analysis. Data on firm performance were cross-validated by using lagged accounting data. The authors tested our hypotheses using hierarchical ordinary least squares regressions, together with bootstrapping procedures for the test on mediation.FindingsA diagnostic use of PMS has a positive association with both exploitation – e.g. reductions in total costs and lead times – and exploration, e.g. introduction of new products and extension of product ranges. The dynamic tension created by a joint diagnostic and interactive use has the strongest association with organizational ambidexterity, measured as the multiplicative interaction between exploration and exploitation.Practical implicationsIf an organization or business unit is mainly pursuing exploitative goals, a mainly diagnostic use of PMS would be most suitable. If goals are both exploitative and explorative, a mix of diagnostic and interactive uses would be most effective.Originality/valueThis research helps reconcile conflicting views in the literature. The diagnostic use of PMS, far from acting as a “negative force,” appears to be necessary to guide opportunity search and to establish an appropriate scope for exploration-related activities. The authors’ focus on the uses of PMSs shows that ambidexterity is achieved through managerial capability, rather than just through the introduction of systems and structures.

show abstract

The role of diagnostic and interactive control uses in innovation

Cited by 73 publications

References 88 publications

Interactions among Environmental Training, Environmental Strategic Planning and Personnel Controls in Radical Environmental Innovation

Interactions among Environmental Training, Environmental Strategic Planning and Personnel Controls in Radical Environmental Innovation

The influence of an interactive use of management control on individual performance: mediating roles of psychological empowerment and proactive behavior

The effects of performance measurement system uses on organizational ambidexterity and firm performance

Contact Info

Product

Resources

About