Abstract
A survey of 289 top managers in nine countries identifies outcome, bureaucratic, and clan controls to be important boundary conditions for the relationship between top management’s strategic planning and innovation output. Outcome controls and bureaucratic controls are shown to enhance the effects of top management’s strategic planning and clan controls are shown to reduce them. We also show that the relationship between innovation output and firm perfor-mance strengthens under conditions of strong clan control. Thus, top managers learn how to combine the tools of strategic planning and management control to enhance innovation output, and which control mechanism to employ to transform innovation output into firm performance.
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