1,899
Views
52
CrossRef citations to date
0
Altmetric
Original Articles

How control systems influence product innovation processes: examining the role of entrepreneurial orientation

&

References

  • Abernethy, M.A. and Brownell, P., 1999a. Management control systems in R&D organizations: the role of accounting, behavior and personnel controls. Accounting, Organizations and Society, 24, 189–204. doi: 10.1016/S0361-3682(98)00059-2
  • Abernethy, M.A. and Brownell, P., 1999b. The role of budgets in organizations facing strategic change: an exploratory study. Accounting, Organizations and Society, 24 (3), 189–204. doi: 10.1016/S0361-3682(98)00059-2
  • Adler, P.S. and Chen, X., 2011. Combining creativity and control: understanding individual motivation in large-scale collaborative creativity. Accounting, Organizations and Society, 36 (2), 63–85. doi: 10.1016/j.aos.2011.02.002
  • Amabile, T.M., 1996. Creativity in Context. Boulder, CO: Westview Press.
  • Amabile, T.M., 1998. How to kill creativity. Harvard Business Review, 76 (5), 76–87.
  • Amabile, T.M., Conti, R., Coon, H., Lazenby, J., and Herron, M., 1996. Assessing the work environment for creativity. Academy of Management Journal, 39 (5), 1154–1184. doi: 10.2307/256995
  • Anderson, B.S., Covin, J.G., and Slevin, D.P., 2009. Understanding the relationship between entrepreneurial orientation and strategic learning capability: an empirical investigation. Strategic Entrepreneurship Journal, 3 (3), 218–240. doi: 10.1002/sej.72
  • Anderson, J.C. and Gerbing, D.W., 1988. Structural equation modelling in practice: a review and recommended two-step approach. Psychological Bulletin, 103 (3), 411–423. doi: 10.1037/0033-2909.103.3.411
  • Atuahene-Gima, K., 2005. Resolving the capability—rigidity paradox in new product innovation. Journal of Marketing, 69 (4), 61–83. doi: 10.1509/jmkg.2005.69.4.61
  • Atuahene-Gima, K. and Ko, A., 2001. An empirical investigation of the effect of market orientation and entrepreneurship orientation on product innovation. Organization Science, 12 (1), 54–74. doi: 10.1287/orsc.12.1.54.10121
  • Avlonitis, G.J. and Salavou, H., 2007. Entrepreneurial orientation of SMEs, product innovativeness, and performance. Journal of Business Research, 60 (5), 566–575. doi: 10.1016/j.jbusres.2007.01.001
  • Baron, R.A. and Tang, J., 2011. The role of entrepreneurs in firm-level innovation: joint effects of positive affect, creativity, and environmental dynamism. Journal of Business Venturing, 26, 49–60. doi: 10.1016/j.jbusvent.2009.06.002
  • Bisbe, J., Batista-Foguet, J-M., and Chenhall, R., 2007. Defining management accounting constructs: a methodological note on the risks of conceptual misspecification. Accounting, Organizations and Society, 32 (7–8), 789–820. doi: 10.1016/j.aos.2006.09.010
  • Bisbe, J. and Malagueño, R., 2009. The choice of interactive control systems under different innovation management modes. European Accounting Review, 18 (2), 371–405. doi: 10.1080/09638180902863803
  • Bisbe, J. and Malagueño, R., 2012. Using strategic performance measurement systems for strategy formulation: does it work in dynamic environments? Management Accounting Research, 23, 296–311. doi: 10.1016/j.mar.2012.05.002
  • Bisbe, J. and Otley, D., 2004. The effects of the interactive use of management control systems on product innovation. Accounting, Organizations and Society, 29, 709–737. doi: 10.1016/j.aos.2003.10.010
  • Bonner, J.M., Ruekert, R.W., and Walker, O.C., 2002. Upper management control of new product development projects and project performance. Journal of Product Innovation Management, 19 (3), 233–245. doi: 10.1111/1540-5885.1930233
  • Bremser, W.G. and Barsky, N.P., 2004. Utilizing the balanced scorecard for R&D performance measurement. R&D Management, 34 (3), 229–238.
  • Bruhl, R., Horch, N., and Osann, M., 2010. Improving integration capabilities with management control. European Journal of Innovation Management, 13 (4), 385–408. doi: 10.1108/14601061011086267
  • Cardinal, L.B., 2001. Technological innovation in the pharmaceutical industry: the use of organizational control in managing research and development. Organization Science, 12, 19–36. doi: 10.1287/orsc.12.1.19.10119
  • Cenfetelli, R.T. and Bassellier, G., 2009. Interpretation of formative measurement in information systems research. MIS Quarterly, 33 (4), 689–707.
  • Chandy, R., Hopstaken, B., Narasimhan, O., and Prabhu, J., 2006. From invention to innovation: conversion ability in product development. Journal of Marketing Research, 43, 494–508. doi: 10.1509/jmkr.43.3.494
  • Chenhall, R.H. and Morris, D., 1995. Organic decision and communication processes and management accounting systems in entrepreneurial and conservative business organizations. Omega, 23 (5), 485–497. doi: 10.1016/0305-0483(95)00033-K
  • Chiesa, V., Frattini, F., Lamberti, L., and Noci, G., 2009. Exploring management control in radical innovation projects. European Journal of Innovation Management, 12 (4), 416–443. doi: 10.1108/14601060910996909
  • Chin, W.W., 1998. The partial least squares approach to structural equation modelling. In: pG.A. Marcoulides, ed. Modern Business Research Methods. Mahwah, NJ: Lawrence Erlbaum, 295–336.
  • Cooper, R., 1998. Benchmarking new product performance: results of the best practices study. European Management Journal, 16 (1), 1–17. doi: 10.1016/S0263-2373(97)00069-8
  • Cooper, R.G., 2008. Perspective: the Stage-Gate idea-to-launch process: update, what's new and Nexgen systems. Journal of Product Innovation Management, 25 (3), 213–232. doi: 10.1111/j.1540-5885.2008.00296.x
  • Covin, J.G. and Lumpkin, G.T., 2011. Entrepreneurial orientation theory and research: reflections on a needed construct. Entrepreneurship Theory and Practice, 35 (5), 855–872. doi: 10.1111/j.1540-6520.2011.00482.x
  • Covin, J.G. and Slevin, D.P., 1989. Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10, 75–87. doi: 10.1002/smj.4250100107
  • Davila, A., 2000. An empirical study on the drivers of management control systems design in new product development. Accounting, Organizations and Society, 25 (4–5), 383–409. doi: 10.1016/S0361-3682(99)00034-3
  • Davila, A., Epstein, M.J., and Shelton, R., 2006. Making Innovation Work: How to Manage It, Measure It, and Profit from It. Upper Saddle River, NJ: Wharton School Publishing.
  • Davila, A., Foster, G., and Oyon, D., 2009. Accounting and control, entrepreneurship and innovation: venturing into new research opportunities. European Accounting Review, 18 (2), 281–311. doi: 10.1080/09638180902731455
  • Dess, G.G. and Beard, D.W., 1984. Dimensions of organisational task environments. Administrative Science Quarterly, 29, 52–73. doi: 10.2307/2393080
  • Dess, G.G., Pinkham, B.C., and Yang, H., 2011. Entrepreneurial orientation: assessing the construct's validity and addressing some of its implications for research in the areas of family business and organizational learning. Entrepreneurship Theory and Practice, 35 (5), 1077–1090. doi: 10.1111/j.1540-6520.2011.00480.x
  • Diamantopoulos, A., Riefler, P., and Roth, K.P., 2008. Advancing formative measurement models. Journal of Business Research, 61, 1203–1218. doi: 10.1016/j.jbusres.2008.01.009
  • Dillman, D.A., 2006. Mail and internet surveys: the tailored design method. New York: John Wiley & Sons.
  • Ditillo, A., 2004. Dealing with uncertainty in knowledge-intensive firms: the role of management control systems as knowledge integration mechanisms. Accounting, Organizations and Society, 29 (3–4), 401–421. doi: 10.1016/j.aos.2003.12.001
  • Dunk, A.S., 2011. Product innovation, budgetary control and the financial performance of firms. British Accounting Review, 43, 102–111. doi: 10.1016/j.bar.2011.02.004
  • Ferreira, A. and Otley, D., 2009. The design and use of performance management systems: an extended framework for analysis. Management Accounting Research, 20, 263–282. doi: 10.1016/j.mar.2009.07.003
  • Fornell, C. and Larcker, D.F., 1981. Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18, 39–50. doi: 10.2307/3151312
  • Garrett, R.P. and Covin, J.G., 2007. A model of corporate entrepreneurship as a strategic adaptation mechanism. In: G.T. Lumpkin, J.A. Katz, eds. Entrepreneurial strategic processes (advances in entrepreneurship, firm emergence and growth), 10. Emerald Group Publishing Limited, 9–31.
  • Garrett, R.P. and Covin, J.G., 2007. A model of corporate entrepreneurship as a strategic adaptation mechanism. In: G.T. Lumpkin, J.A. Katz, eds. Entrepreneurial strategic processes (advances in entrepreneurship, firm emergence and growth), 10. Emerald, 9–31.
  • Gefen, D. and Strauβ, D.W., 2005. A practical guide to factorial validity using PLS-graph: tutorial and annotated example. Communications of the AIS, 16 (5), 91–109.
  • George, B.A., 2011. Entrepreneurial orientation: a theoretical and empirical examination of the consequences of differing construct representations. Journal of Management Studies, 48, 1291–1313. doi: 10.1111/j.1467-6486.2010.01004.x
  • George, B. and Marino, L., 2011. The epistemology of entrepreneurial orientation: conceptual formation, modeling, and operationalization. Entrepreneurship Theory and Practice, 35 (5), 989–1024. doi: 10.1111/j.1540-6520.2011.00455.x
  • Godener, A. and Söderquist, K.E., 2004. Use and impact of performance measurement results in R&D and NPD: an exploratory study. R&D Management, 34 (2), 191–219.
  • Gomes, J.F.S., Weerd-Nederhof, P.C.D., Pearson, A.W., and Cunha, M.P., 2003. Is more always better? An exploration of the differential effects of functional integration on performance in new product development. Technovation, 23 (3), 185−191. doi: 10.1016/S0166-4972(01)00107-9
  • Grant, R.M., 1996. Prospering in dynamically competitive environments: organizational capability and knowledge integration. Organization Science, 7, 375–387. doi: 10.1287/orsc.7.4.375
  • Hair, J.F., Black, W.C., Babin, B., Anderson, R.E., and Tatham, R.L., 2006. Multivariate Data Analysis. 6th ed. Upper Saddle River, NJ: Prentice Hall.
  • Hennessey, B.A. and Amabile, T.M., 2010. Creativity. Annual Review of Psychology, 61 (1), 569–598. doi: 10.1146/annurev.psych.093008.100416
  • Hartmann, F.G.H. and Naranjo-Gil, D., 2007. Management accounting systems, top team heterogeneity and strategic change. Accounting, Organizations and Society, 32 (7/8), 735–756.
  • Henri, J.F., 2006. Management control systems and strategy: a resource-based perspective. Accounting, Organizations and Society, 31, 529–558. doi: 10.1016/j.aos.2005.07.001
  • Henseler, J. and Chin, W., 2010. A comparison of approaches for the analysis of interaction effects between latent variables using partial least squares path modeling. Structural Equation Modeling, 17, 82–109. doi: 10.1080/10705510903439003
  • Hertenstein, J.H. and Platt, M.B., 2000. Performance measures and management control in new product development. Accounting Horizons, 14 (3), 303–323. doi: 10.2308/acch.2000.14.3.303
  • Hirunyawipada, T., Beyerlein, M., and Blankson, C., 2010. Cross-functional integration as a knowledge transformation mechanism: implications for new product development. Industrial Marketing Management, 39, 650–660. doi: 10.1016/j.indmarman.2009.06.003
  • Howell, R.D., Breivik, E., and Wilcox, J.B., 2007. Reconsidering formative measurement. Psychological Methods, 12 (2), 205–218. doi: 10.1037/1082-989X.12.2.205
  • Hulland, J., 1999. Use of partial least squares (PLS) in management research: a review of four recent studies. Strategic Management Journal, 20 (2), 195–204. doi: 10.1002/(SICI)1097-0266(199902)20:2<195::AID-SMJ13>3.0.CO;2-7
  • Hult, G.T., Ketchen, D.J., and Arrfelt, M., 2007. Strategic supply chain management: improving performance through a culture of competitiveness and knowledge development. Strategic Management Journal, 28, 1035–1052. doi: 10.1002/smj.627
  • Jaworski, B.J., Stathakopoulos, V., and Krishnan, H.S., 1993. Control combinations in marketing: conceptual framework and empirical evidence. Journal of Marketing, 57, 57–69. doi: 10.2307/1252057
  • Jørgensen, B. and Messner, M., 2009. Management control in new product development: the dynamics of managing flexibility and efficiency. Journal of Management Accounting Research, 21, 99–124. doi: 10.2308/jmar.2009.21.1.99
  • Lee, H. and Choi, B., 2003. Knowledge management enablers, processes, and organizational performance: an integrative view and empirical examination. Journal of Management Information Systems, 20 (1), 179–228.
  • Liang, H., Saraf, N., Hu, Q., and Xue, Y., 2007. Assimilation of enterprise systems: the effect of institutional pressures and the mediating role of top management. MIS Quarterly, 31 (1), 59–87.
  • Luft, J. and Shields, M.D., 2003. Mapping management accounting: graphics and guidelines for theory-consistent empirical research. Accounting, Organizations and Society, 28 (2–3), 169–249. doi: 10.1016/S0361-3682(02)00026-0
  • Lumpkin, G.T. and Dess, G.G., 1996. Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21, 135–172.
  • MacKenzie, S., Podsakoff, P., and Jarvis, C., 2005. The problem of measurement model misspecification in behavioural and organizational research and some recommended solutions. Journal of Applied Psychology, 90 (4), 710–730. doi: 10.1037/0021-9010.90.4.710
  • Malmi, T. and Brown, D.A., 2008. Management control systems as a package—opportunities, challenges and research directions. Management Accounting Research, 19, 287–300. doi: 10.1016/j.mar.2008.09.003
  • Marginson, D., 2002. Management control systems and their effects on strategy formation at middle-management levels: evidence from a U.K. organization. Strategic Management Journal, 23, 1019–1031. doi: 10.1002/smj.271
  • Marginson, D., 2009. Value systems as a mechanism for organizational change. Journal of Accounting & Organizational Change, 5 (1), 7–34. doi: 10.1108/18325910910932197
  • Merchant, K.A., 1985. Control in business organizations. Boston, MA: Pitman.
  • Merchant, K. and Van der Stede, W., 2012. Management Control Systems: Performance Measurement, Evaluation and Incentives. 3rd ed. London: Prentice-Hall.
  • Miller, D. and Friesen, P.H., 1982. Innovation in conservative and entrepreneurial firms. Strategic Management Journal, 3 (1), 1–25. doi: 10.1002/smj.4250030102
  • Mitchell, V.L., 2006. Knowledge integration and information technology project performance. MIS Quarterly, 30 (4), 919–939.
  • Mouritsen, J., Hansen, A., and Hansen, C.Ø., 2009. Short and long translations: management accounting calculations and innovation management. Accounting, Organizations and Society, 34 (6–7), 738–754. doi: 10.1016/j.aos.2009.01.006
  • Mundy, J., 2010. Creating dynamic tensions through a balanced use of management control systems. Accounting, Organizations and Society, 35 (5), 499–523. doi: 10.1016/j.aos.2009.10.005
  • Nadkarni, S. and Barr, P., 2008. Environmental context, managerial cognition and strategic action: an integrated view. Strategic Management Journal, 29, 1395–1427. doi: 10.1002/smj.717
  • Nunally, J.C., 1978. Psychometric Theory. New York: McGraw Hill Book Company.
  • OECD, 2005. The Measurement of Scientific and Technological Activities: Guidelines for Collecting and Interpreting Innovation Data. Oslo Manual. 3rd ed. Paris: OECD.
  • Parthasarthy, R. and Hammond, J., 2002. Product innovation input and outcome: moderating effects of the innovation process. Journal of Engineering and Technology Management, 19 (1), 75–91. doi: 10.1016/S0923-4748(01)00047-9
  • Pavlou, P.A. and El Sawy, O.A., 2006. From IT leveraging competence to competitive advantage in turbulent environments: the case of new product development. Information Systems Research, 17 (3), 198–227. doi: 10.1287/isre.1060.0094
  • Podsakoff, P.M., MacKenzie, S.B., Lee, J.-Y, and 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. doi: 10.1037/0021-9010.88.5.879
  • Rauch, A., Wilklund, J., Lumpkin, G.T., and Frese, M., 2009. Entrepreneurial orientation and business performance: an assessment of past research and suggestions for the future. Entrepreneurship Theory and Practice, 33 (3), 761–787. doi: 10.1111/j.1540-6520.2009.00308.x
  • Revellino, S. and Mouritsen, J., 2009. The multiplicity of controls and the making of innovation. European Accounting Review, 18 (2), 341–369. doi: 10.1080/09638180802681529
  • Ringle, C., Sarstedt, M., and Strauβ, D., 2012. A critical look at the use of PLS-SEM in MIS Quarterly. MIS Quarterly, 36 (1), iii–xiv.
  • Sherman, J.D., Souder, W.E., and Jenssen, S.A., 2000. Differential effects of the primary forms of cross functional integration on product development cycle time. Journal of Product Innovation Management, 17 (4), 257–267. doi: 10.1016/S0737-6782(00)00046-1
  • Sheremata, W.A., 2000. Centrifugal and centripetal forces in radical new product development under time pressure. Academy of Management Review, 25 (2), 389–408.
  • Simerly, R. and Li, M., 2000. Environmental dynamism, capital structure and performance: a theoretical integration and an empirical test. Strategic Management Journal, 21, 31–49. doi: 10.1002/(SICI)1097-0266(200001)21:1<31::AID-SMJ76>3.0.CO;2-T
  • Simons, R., 1995. Levers of Control. Boston, MA: Harvard Business School Press.
  • Simons, R., 2000. Performance Measurement and Control Systems for Implementing Strategies. Upper Saddle River, NJ: Prentice Hall.
  • Stam, W. and Elfring, T., 2008. Entrepreneurial orientation and the performance of high-technology ventures: the moderating role of intra - and extraindustry social capital. Academy of Management Journal, 51, 97–111. doi: 10.5465/AMJ.2008.30744031
  • Tessier, S. and Otley, D., 2012. A conceptual development of Simons’ levers of control framework. Management Accounting Research, 23 (3), 171–185. doi: 10.1016/j.mar.2012.04.003
  • Thompson, L. and Choi, H.S., 2006. Creativity and Innovation in Organizational Teams. Mahwah, NJ: Lawrence Erlbaum.
  • Tidd, J. and Bessant, J., 2009. Managing Innovation: Integrating Technological, Market and Organizational Change. 4th ed. West Sussex: John Wiley & Sons Ltd.
  • Trott, P., 2008. Innovation Management and New Product Development. 4th ed. Harlow: FT Prentice Hall.
  • Turner, K.L. and Makhija, M.V., 2006. The role of organizational controls in managing knowledge. Academy of Management Review, 31 (1), 197–217. doi: 10.5465/AMR.2006.19379631
  • Tushman, M.L. and O'Reilly, C.A., 1997. Ambidextrous organizations: managing evolutionary and revolutionary change. California Management Review, 3, 8–30.
  • Voss, Z.G., Voss, G.B., and Moorman, C., 2005. An empirical examination of the complex relationships between entrepreneurial orientation and stakeholder support. European Journal of Marketing, 39 (9–10), 1132–1150.
  • Weick, K.E. and Roberts, K.H., 1993. Collective mind in organizations: heedful interrelating on flight decks. Administrative Science Quarterly, 38 (3), 357–381. doi: 10.2307/2393372
  • Welbourne, T.M. and Ferrante, C.J., 2008. To monitor or not to monitor. Group & Organization Management, 33 (2), 139–162. doi: 10.1177/1059601107313308
  • Widener, S.K., 2007. An empirical analysis of the levers of control framework. Accounting, Organizations and Society, 32, 757–788. doi: 10.1016/j.aos.2007.01.001
  • Widener, S.K., Shackell, M.B., and Demers, E.A., 2008. The juxtaposition of social surveillance controls with traditional organizational design components. Contemporary Accounting Research, 25 (2), 605–638. doi: 10.1506/car.25.2.11
  • Zahra, S.A., Van de Velde, E., and Larrañeta, B., 2007. Knowledge conversion capability and the performance of corporate and university spin-offs. Industrial and Corporate Change, 16 (4), 569–608. doi: 10.1093/icc/dtm018
  • Zhou, J. and Shalley, C., 2008. Handbook of Organizational Creativity. New York: Lawrence Erlbaum.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.