Transformational Leadership’s Impact on Organizational Innovation: The Mediating Role of Management Control System

Alharbi, Ibrahim Bader A.; Jamil, Rossilah; Mahmood, Nik Hasnaa Nik; Shaharoun, Awaluddin Mohamed

doi:10.1177/0972150920934640

Cited by 4 publications

(1 citation statement)

References 98 publications

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“…Participatory leaders who make decisions about projects by taking into account of their team members' decisions are able to encourage employees' creativity (Creţu, 2015). Alharbi et al (2020) showed that in the context of Saudi Arabia, transformational leadership contributed to subordinates' self-esteem, confidence and efficacy, motivating them to adopt innovative ways in performing their tasks beyond expected performance. Meanwhile, other empirical studies have evidenced the use of MCS (e.g., the use of specific performance measures, the delegation of decision rights or the use of planning systems) is dependent to some extent on individual differences, such as leadership styles (e.g., Jansen, 2011).…”

Section: Formal Mcs Innovation and Leadership Characteristicsmentioning

confidence: 99%

Exploring the Relationship between Formal Management Control Systems, Organisational Performance and Innovation: The Role of Leadership Characteristics

Nani¹,

Safitri²

2021

AJBA

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Manuscript type: Research paper Research aims: This study aims to examine the relationship between the formal management control system (MCS) on organisational performance and innovation. It also evaluates the role of leadership characteristics as the moderating variable between MCS and innovation. Design/Methodology/Approach: This study employs a survey questionnaire, and data collected from business units of Indonesian manufacturing and services firms. The warp partial least squares structural equation modeling (PLS-SEM) approach was employed to analyse the data and test the proposed model. Research findings: The findings demonstrate that: (1) A welldesigned formal MCS can improve organisational performance and innovation; (2) managers with good characteristics such as showing good behaviour through compliance with company rules, involving themselves in subordinates’ activities, and supporting subordinates’ ideas, can improve subordinates’ creativity in producing innovation. Theoretical contribution/Originality: This study expands the existing literature by examining the role of leadership characteristics as a moderating variable between the formal management control system (MCS) and innovation. Practitioner/Policy implications: The findings of this study demonstrate that, for Indonesian firms to compete in globally-competitive markets, they need to implement well-designed formal MCS. For formal MCS to contribute to innovation, managers who demonstrate good leadership characteristics are crucial. Research limitation/Implications: Future research can investigate comparative analyses of different ASEAN countries since different Asian countries have different dominant cultures and values, which may have some impact on MCS, organisational performance and innovation. It may also consider how different types of MCS improve organisational performance and innovation performance.

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Section: Formal Mcs Innovation and Leadership Characteristicsmentioning

confidence: 99%

Exploring the Relationship between Formal Management Control Systems, Organisational Performance and Innovation: The Role of Leadership Characteristics

Nani¹,

Safitri²

2021

AJBA

View full text Add to dashboard Cite

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Learning generatively to facilitate marketing innovation of international joint ventures in emerging markets

Do,

Tho,

2024

IJOEM

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PurposeThis study aims to investigate a mediation model in which generative learning positively affects marketing innovation and both organizational control and relationship openness mediate the relationship between learning intent and generative learning of international joint ventures (IJVs) in emerging markets. We also decipher the degree of necessity of these factors for generative learning and of generative learning for marketing innovation.Design/methodology/approachA sample of 181 marketing managers of IJVs in Vietnam, an emerging market, was surveyed to collect data. Partial least squares structural equation modeling (PLS-SEM) was employed to test the net effect, and necessary condition analysis (NCA) was used to decipher the degree of necessity.FindingsThe PLS-SEM results demonstrate that the effect of learning intent on generative learning is fully mediated by organizational control and relationship openness, which in turn leads to marketing innovation. The NCA findings reveal that all three factors, namely learning intent, organizational control and relationship openness, serve as necessary conditions for generative learning. However, generative learning does not play the role of a necessary condition for marketing innovation.Practical implicationsThe study findings suggest that IJVs in emerging markets should pay attention not only to the net effects of those factors but also to their degrees of necessity for generative learning in order to achieve marketing innovation.Originality/valueThe study contributes to the literature by confirming the mediating roles of organizational control and relationship openness in the relationship between learning intent and generative learning. Furthermore, it is among the first to decipher the degrees of necessity of these factors for generative learning and of generative learning for the marketing innovation of IJVs in emerging markets.

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Fifty years of management control systems research: a bibliometric review of the literature and research agenda

Truant,

Crocco,

Culasso

et al. 2024

IJPPM

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PurposeThe popularity of Management Control Systems (MCS) has increased due to rising uncertainty in business operations. They help companies implement strategies, manage information and incentivize managers with common goals. Therefore, the research aims to take stock of the evolution of studies on MCS adoption, identifying trends and future avenues.Design/methodology/approachWhile a few systematic literature reviews have investigated the implications of MCS adoption amid specific contexts, a comprehensive bibliometric analysis of the whole research stream is lacking. Consequently, our study analyzes relevant scientific literature on the topic of MCS from 1970 to 2022, through the use of VOSviewer, R Bibliometrix and Latent Dirichlet Allocation to visualize the bibliometric results.FindingsThe study provides a comprehensive overview of key emerging topics in MCS literature and the ways in which they have developed over the decades, along with a structured research agenda built upon the literature gaps found amid current and past scientific production. It does so by analyzing scientific production from multiple bibliometric aspects and advanced text-mining techniques to extract common emerging themes from the dataset.Originality/valueTo the best of the authors’ knowledge, no attempt has yet been made to synthesize MCS literature through a bibliometric review. The bibliometric perspective on MCS enhances scholars' understanding of the historical path and future trends of the literature stream, while helping practitioners update existing MCS conceptualizations in light of contemporary changes.

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Transformational Leadership’s Impact on Organizational Innovation: The Mediating Role of Management Control System

Cited by 4 publications

References 98 publications

Exploring the Relationship between Formal Management Control Systems, Organisational Performance and Innovation: The Role of Leadership Characteristics

Exploring the Relationship between Formal Management Control Systems, Organisational Performance and Innovation: The Role of Leadership Characteristics

Learning generatively to facilitate marketing innovation of international joint ventures in emerging markets

Fifty years of management control systems research: a bibliometric review of the literature and research agenda

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