The Role of Controls in Innovation: An Examination of Diagnostic Use, Interactive Use, and Dynamic Tension


The aim of this research project is to examine the mechanisms between the interactive and diagnostic use of management controls and the joint impact that control combinations have on outcomes related to new product development (NPD). Based on the Levers of Control Framework by Simons (1995), we argue that the use of management controls has significant influence on the outcome of NPD projects. Digging deeper into the micro-mechanisms underlying that relationship, we hypothesize that the alignment of the development process is a mediator of that relationship. Findings help to reveal the combination of uses of controls under which the circumstances are the most promising with regards to innovativeness. This knowledge supports R&D management in controlling its NPD activities effectively. Therefore, this research project also has vital managerial implications, specifically for the design of appropriate management controls. Analysis is based on international survey data from 695 companies.

Additional Informationsunspecified
Commencement Date1 December 2015
Contributors Müller-Stewens, Benedikt (Project Worker)
Institute/School ACA - Institute of Accounting, Control and Auditing
Completion Date 30 November 2016
Keywords Control Systems, Levers of Control, New Product Development, Structural Equation Modelling
Methods Survey, structural equation modelling
Funders HSG – Grundlagenforschungsfonds (GFF)
Id 245938
Project Range Institute/School
Project Status ongoing
Subjects business studies
Topics Effective selection of management controls in new product development; role of development process in NPD
Project Type fundamental research project
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