The agility-control-nexus: A levers of control approach on the consequences of agility in innovation projects

Abstract

Recent developments indicate a fast-growing relevance of the agile project methodology in innovation. Besides the benefits, agile projects also pose several challenges. Organizations need to come up with an answer to cope with the inherent risks of agile projects. The adaption of management control mechanisms is key to foster the benefits of agile. However, the ongoing debate on the benefits of control systems for innovation and the harm of control systems for achieving agility creates a nexus. Further research on how to adapt existing mechanisms is required to obtain a better understanding and provide guidance for organizations. Building on Simon's levers-of-control (LOC), this study specifies the consequences of different control levers applied by top managers on the outcome of innovation projects considering the respective project agility and the agility of the projects' environment. We follow the calls of existing research on the nexus of control and agility and adumbrate which control levers can positively influence the outcome of agile and non-agile innovation projects. Using survey data of 316 project managers and product owners across different industries, this study reveals that the impact of control on innovation project performance depends on the design of control systems and the emphasis on different control levers used by top managers. Furthermore, the findings reveal a moderation effect of agility in this context. The combination of the LOC and agile project management for innovation projects contributes to the literature on innovation management, project management, and management control.