Control Mechanisms and Leadership Styles: A Conceptual Framework for Innovation Projects

Andy Susilo Lukito-Budi

doi:10.15294/maj.v10i1.42688

Abstract

This is a conceptual paper discussing how to undertake innovation in an organization as a project, and the components of the structure and leadership style as factors that support the implementation of the project. It reviews previous research related to organizational, leadership and control theories. It focuses on introducing the role of leadership and control structures into innovation projects. The suggested structure to be adopted is a mixed combination of organic and mechanical structures. This article argues the importance of the existence of a control mechanism to regulate the project; this functions as a set of tools to control the dynamics of the organizational structure in the project. It also reveals transformational leadership as the most suitable leadership style to control and deliver a successful innovation project. At the end, this article proposes several propositions to be tested further in empirical work. Some discussions about optional research methods are also presented.

Highlights

During the 1960s, Burns and Stalker (1961), together with other contingent theory researchers, claimed that in order to sustain in the market place, an organization must innovate
This vital role was reduced by Chesbrough (2003) when he introduced the concept of open innovation, one of whose principles is the adoption of knowledge from external organizations, which can be interpreted as collaborating with experts (Un & Asakawa, 2015; Dut et al, 2016)
They found evidence that organizations could experience a serious failure in their research and development (R&D) investment, which could weaken their position in the marketplace in the future

Summary

Introduction

During the 1960s, Burns and Stalker (1961), together with other contingent theory researchers, claimed that in order to sustain in the market place, an organization must innovate. In the era of closed innovation, organizations relied on their research and development (R&D) people to ignite innovation within the organization, which was considered to be a vital to ensure its sustainability. This vital role was reduced by Chesbrough (2003) when he introduced the concept of open innovation, one of whose principles is the adoption of knowledge from external organizations, which can be interpreted as collaborating with experts (Un & Asakawa, 2015; Dut et al, 2016). Van der Panne et al (2003) argued that heavy investment in R&D activities does not take into account any guarantee of successful innovation outcomes They found evidence that organizations could experience a serious failure in their R&D investment, which could weaken their position in the marketplace in the future. The presence of an innovation based project should reflect the innovation process being undertaken in the organization (Organ & Greene, 1981; Munns & Bjeirmi, 1996)

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Conclusion