Vertaisarvioitu artikkeli kokoomateoksessa (A3)

Controlling creativity and innovation: Paradox or necessity?

Julkaisun tekijät: Pfister Jan

Julkaisuvuosi: 2014

Kirjan nimi *: Management control and uncertainty (Palgrave McMillan, eds. David Otley, Kim Soin, p. 134-148)

Sivujen määrä: 15

ISBN: 978-1-137-39210-7




Innovation is seen as a central driver of economic growth and sustainability – both in the corporate and the public worlds. Managing innovation is challenging since there is much uncertainty involved in forecasting the organizational future if no innovation occurs or some specific innovations are pursued. In this regard, research on management control systems (MCS) shows some disagreement about how far formal control procedures enable or hinder innovation. It is argued that formal control and bureaucracies constrain employees’ autonomy including their capability to be creative. On the contrary, more recent research recognises the usefulness of formalized MCS for decision making along the innovation process, appreciating the necessity of controlling innovation.

In light of this controversy, this chapter aims to explore some of the challenges and possibilities for MCS in the quest of controlling creativity and innovation. The contribution of the chapter is to contextually illustrate that innovation entails various performances that fit differently to particular contexts, thereby encouraging further research to theoretically and empirically explore the wide range of roles that MCS have in enabling creativity and innovation. In so doing, the chapter compares an innovation-driven technology corporation with a highly regulated financial services provider. Both these large multinational firms set innovation as a high priority in adapting to the uncertainties of their emerging business environments. Nonetheless, the way they approach it differs fundamentally, indicating the wide range of MCS design and operation that can occur in different innovation contexts.

Last updated on 2022-22-02 at 11:55