INFLUENCE OF THE CREATIVITY OF THE TEAM ON PROCESS INNOVATION AND OF THE PROCESS INNOVATION ON ORGANIZATIONAL PERFORMANCE: EFFECTS OF THE INTERACTIVE AND DIAGNOSTIC USE OF CONTROL SYSTEMS

Authors

DOI:

https://doi.org/10.4270/ruc.2021211

Keywords:

Creativity of the Team, Process Innovation, Control Systems, Interactive and Diagnostic Usage, Organizational Performance

Abstract

This study analyzes the influence of the team’s creativity on process innovation and process innovation on organizational performance. Besides, it analyzes the effect of interactive and diagnostic use of control systems on the creativity of the team and organizational performance. We realized a survey with Brazilian startup managers registered on the LinkedIn website and obtained a sample of 102 valid answers. We applied a structural equation modeling technique to test the research hypothesis. The results indicate a positive influence of the team's creativity on process innovation and process innovation on organizational performance. Furthermore, the interactive use of control systems shows a direct and positive influence on the team's creativity and organizational performance, which is also influenced by the diagnostic use of control systems. However, we did not find any evidence indicating that the diagnostic use of control systems negatively influences the team’s creativity, as proposed in the literature. These discoveries contribute by providing insights for research that address elements related to creativity and innovation, especially in management accounting. It also contributes to startup management practice when identifying elements that could impact organizational results, highlighting the effects of creativity and control systems.

Downloads

Download data is not yet available.

Author Biographies

Renata Mendes de Oliveira, Universidade Federal de Uberlândia - UFU

Doutoranda do Programa de Pós-Graduação em Contabilidade da Universidade Federal de Santa Catarina – UFSC; Professora da Universidade Federal de Uberlândia - UFU.

Ilse Maria Beuren, Universidade Federal de Santa Catarina - UFSC

Doutora em Controladoria e Contabilidade pela FEA/USP; Professora do Programa de Pós-Graduação em Contabilidade da Universidade Federal de Santa Catarina - UFSC.

References

Adler, P.S., & Chen, C.X. (2011). Combining creativity and control: Understanding individual motivation in large-scale collaborative creativity. Accounting, Organizations and Society, 36(2), 63-85.

Amabile, T.M. (1997). Motivating creativity in organizations: On doing what you love and loving what you do. California Management Review, 40(1), 39-58.

Amabile, T.M., Conti, R., Coon, H., Lazenby, J., & Herron, M. (1996). Assessing the work environment for creativity. Academy of Management Journal, 39(5), 1154-1184.

Amabile, T.M., Hadley, C.N., & Kramer, S.J. (2002). Creativity under the gun. Harvard Business Review, 80, August, 52-63.

Anderson, N., Potočnik, K., & Zhou, J. (2014). Innovation and creativity in organizations: A state-of-the-science review, prospective commentary, and guiding framework. Journal of Management, 40(5), 1297-1333.

Ashok, M., Narula, R., & Martínez-Noya, A. (2016). How do collaboration and investments in knowledge management affect process innovation in services?. Journal of Knowledge Management, 20(5), 1004-1024.

Azar, G., & Drogendijk, R. (2014). Psychic distance, innovation, and firm performance. Management International Review, 54(5), 581-613.

Baer, M., & Frese, M. (2003). Innovation is not enough: Climates for initiative and psychological safety, process innovations, and firm performance. Journal of Organizational Behavior: The International Journal of Industrial, Occupational and Organizational Psychology and Behavior, 24(1), 45-68.

Bedford, D.S. (2015). Management control systems across different modes of innovation: Implications for firm performance. Management Accounting Research, 28(4), 12-30.

Bledow, R., Frese, M., Anderson, N., Erez, M., & Farr, J. (2009). A dialectic perspective on innovation: Conflicting demands, multiple pathways, and ambidexterity. Industrial and Organizational Psychology, 2(3), 305-337.

Bharadwaj, S., & Menon, A. (2000). Making innovation happen in organizations: individual creativity mechanisms, organizational creativity mechanisms or both?. Journal of Product Innovation Management: An International Publication of the Product Development & Management Association, 17(6), 424-434.

Brüggen, A., Feichter, C., & Williamson, M. G. (2018). The effect of input and output targets for routine tasks on creative task performance. The Accounting Review, 93(1), 29-43.

Camisón, C., & Villar-López, A. (2014). Organizational innovation as an enabler of technological innovation capabilities and firm performance. Journal of Business Research, 67(1), 2891-2902.

Chenhall, R.H., & Morris, D.E.I.G.A.N. (1995). Organic decision and communication processes and management accounting systems in entrepreneurial and conservative business organizations. Omega, 23(5), 485-497.

Chenhall, R.H., & Moers, F. (2015). The role of innovation in the evolution of management accounting and its integration into management control. Accounting, Organizations and Society, 47(8), 1-13.

Choi, J.N., Anderson, T.A., & Veillette, A. (2009). Contextual inhibitors of employee creativity in organizations: The insulating role of creative ability. Group & Organization Management, 34(3), 330-357.

Coccia, M. (2017). Sources of technological innovation: Radical and incremental innovation problem-driven to support competitive advantage of firms. Technology Analysis & Strategic Management, 29(9), 1048-1061.

Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). New York, NY: Routledge Academic.

Cools, M., Stouthuysen, K., & Van den Abbeele, A. (2017). Management control for stimulating different types of creativity: The role of budgets. Journal of Management Accounting Research, 29(3), 1-21.

Damanpour, F., & Aravind, D. (2012). Managerial innovation: Conceptions, processes and antecedents. Management and Organization Review, 8(2), 423-454.

Damanpour, F., Szabat, K.A., & Evan, W.M. (1989). The relationship between types of innovation and organizational performance. Journal of Management Studies, 26(6), 587-602.

Damanpour, F., Walker, R.M., & Avellaneda, C.N. (2009). Combinative effects of innovation types on organizational performance: A longitudinal study of public services. Journal of Management Studies, 46(4), 650-675.

D’Angelo, A. (2012). Innovation and export performance: A study of Italian high-tech SMEs. Journal of Management & Governance, 16(3), 393-423.

Dees, J.G. (2001). Mastering the art of innovation. In: Dees, J.G., Emerson, J., & Economy, P. (Eds.). Enterprising nonprofits: A toolkit for social entrepreneurs (pp. 161-198). New York: John Wiley and Sons.

Degenhart, L., & Beuren, I.M. (2019). Consolidação do modelo das alavancas de controle de Simons: Análise sob a lente da Teoria Ator-Rede. Advances in Scientific and Applied Accounting, 12(1), 004-023.

Edquist, C., Hommen, L., & McKelvey, M.D. (2001). Innovation and employment: Process versus product innovation. Cheltenham, UK: Edward Elgar.

Fávero, L.P., & Belfiore, P. (2017). Manual de análise de dados: Estatística e modelagem multivariada com Excel®, SPSS® e Stata®. Rio de Janeiro: Elsevier.

Ferreira, A. (2002). Management accounting and control systems design and use: an exploratory study in Portugal. PhD Thesis. Department of Accounting and Finance Lancaster University.

Gault, F. (2018). Defining and measuring innovation in all sectors of the economy. Research Policy, 47(3), 617-622.

George, J.M. (2007). Creativity in organizations. The Academy of Management Annals, 1(1), 439-477.

Goedhuys, M., & Veugelers, R. (2012). Innovation strategies, process and product innovations and growth: Firm-level evidence from Brazil. Structural change and economic dynamics, 23(4), 516-529.

Gong, Y., Cheung, S.Y., Wang, M., & Huang, J.C. (2012). Unfolding the proactive process for creativity: Integration of the employee proactivity, information exchange, and psychological safety perspectives. Journal of Management, 38(5), 1611-1633.

Govindarajan, V. (1988). A contingency approach to strategy implementation at the business-unit level: Integrating administrative mechanisms with strategy, Academy of Management Journal, 31(4), 826-853.

Hair Jr., J.F., Black, W.C., Babin, B.J., Anderson, R.E., & Tatham, R.L. (2009). Análise multivariada de dados. Porto Alegre: Bookman.

Hair Jr, J.F., Hult, G.T.M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM). Los Angeles: Sage.

Henri, J.F. (2006). Management control systems and strategy: A resource-based perspective. Accounting, Organizations and Society, 31(6), 529-558.

Hiam, A. (2003). Motivational management: inspiring your people for maximum performance. AMACOM Div American Mgmt Assn.

Hilman, H., & Kaliappen, N. (2014). Do cost leadership strategy and process innovation influence the performance of Malaysia hotel industry?. Asian Social Science, 10(10), 134-141.

Hirst, G., Van Knippenberg, D., Chen, C.H., & Sacramento, C.A. (2011). How does bureaucracy impact individual creativity? A cross-level investigation of team contextual influences on goal orientation–creativity relationships. Academy of Management Journal, 54(3), 624-641.

Hong, J., Hou, B., Zhu, K., & Marinova, D. (2018). Exploratory innovation, exploitative innovation and employee creativity: The moderation of collectivism in Chinese context. Chinese Management Studies, 12(2), 268-286.

Hortinha, P., Lages, C., & Lages, L.F. (2011). The trade-off between customer and technology orientations: Impact on innovation capabilities and export performance. Journal of International Marketing, 19(3), 36-58.

Hülsheger, U.R., Anderson, N., & Salgado, J.F. (2009). Team-level predictors of innovation at work: a comprehensive meta-analysis spanning three decades of research. Journal of Applied Psychology, 94(5), 1128-1145.

Junqueira, E., Dutra, E. V., Zanquetto Filho, H., & Gonzaga, R. P. (2016). Efeito das escolhas estratégicas e dos sistemas de controle gerencial no desempenho organizacional. Revista Contabilidade & Finanças, 27(72), 334-348.

Karabulut, A.T. (2015). Effects of innovation types on performance of manufacturing firms in Turkey. Procedia-Social and Behavioral Sciences, 195(1), 1355-1364.

Klomp, L., & Van Leeuwen, G. (2001). Linking innovation and firm performance: a new approach. International Journal of the Economics of Business, 8(3), 343-364.

Kowo, S.A., Akinbola, A.O., & Akinrinola, O.O. (2018). The Impact of process innovation on organisational performance. Acta Universitatis Danubius. Å’conomica, 15(2), 115-132.

Laužikas, M., Tindale, H., Bilota, A., & Bielousovaitė, D. (2015). Contributions of sustainable start-up ecosystem to dynamics of start-up companies: The case of Lithuania. Entrepreneurship and Sustainability, 3(1), 8-24.

Lopes, I. F., Beuren, I. M., & Gomes, T. (2019). Influência Do Uso Do Sistema De Controle Gerencial E Da Estratégia Organizacional No Desempenho Da Inovação. Revista Universo Contábil, 15(1), 85-105.

López-Nicolás, C., & Meroño-Cerdán, A.L. (2011). Strategic knowledge management, innovation and performance. International Journal of Information Management, 31(6), 502-509.

Lopez-Valeiras, E., Gonzalez-Sanchez, M.B., & Gomez-Conde, J. (2016). The effects of the interactive use of management control systems on process and organizational innovation. Review of Managerial Science, 10(3), 487-510.

Madjar, N., Oldham, G.R., & Pratt, M.G. (2002). There's no place like home? The contributions of work and nonwork creativity support to employees' creative performance. Academy of Management Journal, 45(4), 757-767.

Massaro, M., Bardy, R., & Pitts, M. (2012). Supporting creativity through knowledge integration during the creative processes: A management control system perspective. Electronic Journal of Knowledge Management, 10(3), 258-267.

McAdam, R., & Keogh, W. (2004). Transitioning towards creativity and innovation measurement in SMEs. Creativity and Innovation Management, 13(2), 126-139.

McGrath, R.G. (2001). Exploratory learning, innovative capacity, and managerial oversight. Academy of Management Journal, 44(1), 118-131.

Mumford, M.D., & Gustafson, S.B. (1988). Creativity syndrome: Integration, application, and innovation. Psychological Bulletin, 103(1), 27-43.

Mundy, J. (2010). Creating dynamic tensions through a balanced use of management control systems. Accounting, Organizations and Society, 35(5), 499-523.

Naranjo-Valencia, J.C., Jiménez-Jiménez, D., & Sanz-Valle, R. (2016). Studying the links between organizational culture, innovation, and performance in Spanish companies. Revista Latinoamericana de Psicología, 48(1), 30-41.

Oro, I. M., & Lavarda, C. E. F. (2020). Uso dos Sistemas de Controle Gerencial no Equilíbrio da Tensão Dinâmica na Implementação de Estratégias de Inovação em Empresa Familiar. Revista BASE–v, 17(2).

Palos-Sanchez, P., Saura, J.R., Grilo, A., & Ramirez, R.R. (2020). How attitudes, vision and ability to capture opportunities affect startups’ business creativity. Creativity Studies, 13(2), 387-405.

Podsakoff, P.M., MacKenzie, S.B., Lee, J.Y., & Podsakoff, N.P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879-903.

Raja, U., & Johns, G. (2010). The joint effects of personality and job scope on in-role performance, citizenship behaviors, and creativity. Human Relations, 63(7), 981-1005.

Rego, A., Sousa, F., Cunha, M.P., Correia, A., & Saurâ€Amaral, I. (2007). Leader selfâ€reported emotional intelligence and perceived employee creativity: An exploratory study. Creativity and Innovation Management, 16(3), 250-264.

Richard, P.J., Devinney, T.M., Yip, G.S., & Johnson, G. (2009). Measuring organizational performance: Towards methodological best practice. Journal of Management, 35(3), 718-804.

Ringle, C.M., Silva, D., & Bido, D.S. (2014). Modelagem de Equações Estruturais com utilização do Smartpls. Revista Brasileira de Marketing, 13(2), 56-73.

Sakka, O., Barki, H., & Côté, L. (2013). Interactive and diagnostic uses of management control systems in IS projects: Antecedents and their impact on performance. Information & Management, 50(6), 265-274.

Sands, J.S. (2006). Strategic priorities, management control systems, and managerial performance: an empirical study. Doctor of Philosophy Thesis, Griffith University.

Sarooghi, H., Libaers, D., & Burkemper, A. (2015). Examining the relationship between creativity and innovation: A meta-analysis of organizational, cultural, and environmental factors. Journal of Business Venturing, 30(5), 714-731.

Silva, G.M., Styles, C., & Lages, L.F. (2017). Breakthrough innovation in international business: The impact of tech-innovation and market-innovation on performance. International Business Review, 26(2), 391-404.

Simonetti, R., Archibugi, D., & Evangelista, R. (1995). Product and process innovations: how are they defined? How are they quantified?. Scientometrics, 32(1), 77-89.

Simons, R. (1990). The role of management control systems in creating competitive advantage: New perspectives, Accounting Organizations and Society, 15(6), 127-143.

Simons, R. (1995). Levers of Control: How managers use innovative control systems to drive strategic renewal. Boston, MA: Harvard Business School Press.

Simpson, P.M., Siguaw, J.A., & Enz, C.A. (2006). Innovation orientation outcomes: The good and the bad. Journal of Business Research, 59(10-11), 1133-1141.

Sisaye, S., & Birnberg, J. (2010). Extent and scope of diffusion and adoption of process innovations in management accounting systems. International Journal of Accounting & Information Management, 18(2), 118-139.

Somech, A., & Drach-Zahavy, A. (2013). Translating team creativity to innovation implementation: The role of team composition and climate for innovation. Journal of Management, 39(3), 684-708.

Speckbacher, G. (2017). Creativity research in management accounting: A commentary. Journal of Management Accounting Research, 29(3), 49-54.

Speklé, R.F., van Elten, H.J., & Widener, S.K. (2017). Creativity and Control: A Paradox—Evidence from the Levers of Control Framework. Behavioral Research in Accounting, 29(2), 73-96.

StartupBase. (2020). Estatísticas. Recuperado em janeiro 15, 2020, de https://startupbase.com.br/home/stats

Su, S., Baird, K., & Schoch, H. (2015). The moderating effect of organisational life cycle stages on the association between the interactive and diagnostic approaches to using controls with organisational performance. Management Accounting Research, 26(1), 40-53.

Taggar, S. (2002). Individual creativity and group ability to utilize individual creative resources: A multilevel model. Academy of Management Journal, 45(2), 315-330.

Teece, D.J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319-1350.

Tessier, S., & Otley, D. (2012). A conceptual development of Simons’ Levers of Control framework. Management Accounting Research, 23(3), 171-185.

Vaccaro, I.G., Jansen, J.J., Van Den Bosch, F.A., & Volberda, H.W. (2012). Management innovation and leadership: The moderating role of organizational size. Journal of Management Studies, 49(1), 28-51.

Verhees, F.J., Meulenberg, M.T., & Pennings, J.M. (2010). Performance expectations of small firms considering radical product innovation. Journal of Business Research, 63(7), 772-777.

Wang, D.S. (2019). Association between technological innovation and firm performance in small and medium-sized enterprises. International Journal of Innovation Science, 11(2), pp. 227-240.

West, M.A. (2002). Sparkling fountains or stagnant ponds: An integrative model of creativity and innovation implementation in work groups. Applied psychology, 51(3), 355-387.

West, M.A., & Farr, J.L. (1989). Innovation at work: psychological perspectives. Social Behaviour, 4(1), 15-30.

West, M.A., & Sacramento, C.A. (2012). Creativity and innovation: The role of team and organizational climate. In M. Mumford (Ed.), Handbook of organizational creativity (pp. 359-385). London, UK: Academic Press.

Widener, S.K. (2007). An empirical analysis of the levers of control framework. Accounting, Organizations and Society, 32(7-8), 757-788.

Wright, R.E., Palmer, J.C., & Perkins, D. (2004). Types of product innovations and small business performance in hostile and benign environments. Journal of Small Business Strategy, 15(2), 33-44.

Published

2022-09-27

How to Cite

de Oliveira, R. M., & Beuren, I. M. (2022). INFLUENCE OF THE CREATIVITY OF THE TEAM ON PROCESS INNOVATION AND OF THE PROCESS INNOVATION ON ORGANIZATIONAL PERFORMANCE: EFFECTS OF THE INTERACTIVE AND DIAGNOSTIC USE OF CONTROL SYSTEMS. Revista Universo Contábil, 17(2). https://doi.org/10.4270/ruc.2021211

Issue

Section

National Section