Abstract
This paper aims to identify what organisations understand and use as management control instruments to provide support to their strategies implemented thru by the innovation process. A survey-based study was developed and the results suggest that innovation is predominantly focused on products and processes, to the detriment of technological and organisational innovation. When addressed individually specific characteristics with regard to the specific strategic types, the instruments presence is more pronounced in the analyser type. The reactor type is associated with absence or non-use of artefacts, specially budgeting and budgeting control. These findings reflect the alignment between strategic types, the availability of instruments and intensity of innovation captured by radical and incremental innovation, which is useful information with which to understand organisations and their market activities and to promote assertive management. The contribution of this paper refers to bring information about specific management control instruments existence and the impact for the intensity of the innovation that is relevant for management.
Highlights
H uman knowledge develops cumulatively; i.e., each new contribution complements a previously developed contribution
Convergent validity was assessed through the average variance extracted (AVE), observing that all latent variables exceeded the recommended value of 0.5 (HAIR JR. et al, 2014), except for the latent variables of the analyser strategic type and innovation intensity, which scored 0.46
The diattenuated correlation equalled 0.88, indicating that discriminant validity continues to exist in this case, according to the criterion proposed by Netemeyer, Bearden and Sharma (2003)
Summary
H uman knowledge develops cumulatively; i.e., each new contribution complements a previously developed contribution. As consequence of the description of different profiles by literature, the hypothesis 1 is structured considering that the existence of the management instruments depends on the specificity of the typology: H1: the more adherence to defender or prospector or analyser strategic profile higher usage of management control instrument structure Reactor organisations are those in which senior executives perceive the change and uncertainty in the activity environment, do not manage to react efficiently, and do not have a consistent strategy and structure and make adjustments in reaction without much proactive strength.
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