Skip to main content
SpringerLink
Log in

Controlling Creativity and Innovation: Paradox or Necessity?

  • Chapter
Management Control and Uncertainty

Abstract

Innovation is seen as a central driver of economic growth and sus tain- ability — both in the corporate and the public worlds. Managing innovation is challenging as there is much uncertainty involved in forecasting the organizational future if no innovation occurs or some specific innovations are pursued. In this regard, research on management control systems (MCSs) shows some disagreement about how far formal control procedures enable or hinder innovation. It is argued that formal control and bureaucracies constrain employees’ autonomy including their capability to be creative. On the contrary, more recent research recognizes the usefulness of formalized MCS for decision-making along the innovation process, appreciating the necessity of controlling innovation.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Abernethy, M. A. & Lillis, A. M. (1995). The Impact of Manufacturing Flexibility on Management Control System Design. Accounting, Organizations and Society, 20(4), 241–258.

    Article  Google Scholar 

  • Adler, P. S. & Borys, B. (1996). Two Types of Bureaucracy: Enabling and Coercive. Administrative Science Quarterly, 41(1), 61–89.

    Article  Google Scholar 

  • Adler, P. S. & Chan, C. X. (2011). Combining Creativity and Control: Understanding Individual Motivation in Large-Scale Collaborative Creativity. Accounting, Organizations & Society, 36, 63–85.

    Article  Google Scholar 

  • Ahrens, T. & Chapman, C. S. (2004). Accounting for Flexibility and Efficiency: A Field Study of Management Control Systems in a Restaurant Chain. Con temporary A ccoun ting Research, 21(2), 271–301.

    Article  Google Scholar 

  • Amabile, T. M. (1983). The Social Psychology of Creativity. New York: Springer-Verlag.

    Book  Google Scholar 

  • Amabile, T. M., Conti, R., Coon, H., Lazenby J. & Henon, M. (1996). Assessing he Work Environment for Creativity. Academy of Management journal, 39(5), 1154–1184.

    Article  Google Scholar 

  • Anthony, R. N. (1965). Planning and Control Systems: Framework for Analysis. Boston: Harvard University Press.

    Google Scholar 

  • Bairon, F. & Harrington, D. M. (1981). Creativity, Intelligence and Personality.,4 n nu a I Revi ew of Psych ology, 32, 439–476.

    Article  Google Scholar 

  • Bisbe, J. & Otley D. (2004). The Effects of the Interactive Use of Management Control Systems on Product Innovation. Accounting, Organizations, and Society, 9, 709–737.

    Article  Google Scholar 

  • Chesbrough, H. (2003). Open Innovation: The New Imperative for Creating and Profiting from Technology. Boston: Harvard Business School Press.

    Google Scholar 

  • Davila, A. (2000). An Empirical Study on the Drivers of Management Control System’s Design in New Product Development. Accounting, Organizations and Society, 25(4/5), 383–409.

    Google Scholar 

  • Davila, A. (2005). An Exploratory Study on the Drivers of Management Control Systems’ Design in New Product Development. Accounting, Organizations and Society, 30(3), 223–248.

    Article  Google Scholar 

  • Davila, A. & Ditillo, A. (2013). Convergent Creativity and Management Control Systems: Managing Stylistic Innovation in Fashion Companies. Working Paper.

    Google Scholar 

  • Davila, A., Foster, G. & Li, M. (2009a). Reasons for Management Control Systems Adoption: Insights from Product Development System Choice by Early Stage Entrepreneurial Companies. Accounting, Organizations and Society, 34(3-4), 322–347.

    Google Scholar 

  • Davila, A., Foster, G. & Oyon, D. (2009b). Accounting and Control, Entrepreneurship and Innovation: Venturing into New Research Opportunities. European Accounting Review, 18(2), 281–311.

    Article  Google Scholar 

  • Davila, A. & Wouters, M. (2004). Designing Cost-Competitive Technology Products through Cost Management. Accounting Horizons, 18(1), 13–26.

    Article  Google Scholar 

  • Ditillo, A. (2004). Dealing with Uncertainty in Knowledge-Intensive Firms: The Role of Management Control System as Knowledge Integration Mechanisms.,4ccounting, Organizations, and Society, 29, 401–421.

    Google Scholar 

  • Faems, D., De Visser, M., Andries, P. & Van Looy B. (2010). Technolog? Alliance Portfolios and Financial Performance: Value-Enhancing and Cost-Increasing Effects of Open Innovation, journal of Production Innovation Management, 27, 785–796.

    Article  Google Scholar 

  • Fagerberg, J. (2005). Chapter 1: Innovation — A Guide to the Literature. In J. Fagerberg, D. C. Mowery & R. R. Nelson (Eds), The Oxford Handbook of Innovation. New York: Oxford University Press.

    Google Scholar 

  • Ferreira, A. & Otley, D. (2009). The Design and Use of Performance Management Systems: An Extended Framework for Analysis. Management Accounting Research, 0, 263–282.

    Article  Google Scholar 

  • Granlund, M. & Taipaleenmäki, J. (2005). Management Control and Contro 11 ership in New Economy Firms — A Life Cycle Perspective. Management Accounting Research, 16, 21–57.

    Article  Google Scholar 

  • Hertenstein, J. H. & Piatt, M. B. (2000). Performance Measures and Management Control in New Product Development. Accounting Horizons, 14(3), 303–323.

    Article  Google Scholar 

  • Jordan, S. & Messner, M. (2012). Enabling Control and the Problem of Incomplete Performance Indicators. Accounting, Organizations & Society, 37, 544–564.

    Article  Google Scholar 

  • Jorgensen, B. & Messner, M. (2010). Accounting and Strategising: A Case Study from New Product Development. Accounting, Organizations andSociety, 2010(35), 184–204.

    Article  Google Scholar 

  • Kaplan, R. S. (2009). Conceptual Foundations of the Balanced Scorecard. In C. S. Chapman, A. G. Hopwood & M. D. Shields (Eds), Handbook of Management Accounting Research (Vol. 2). Oxford: Elsevier, 1253–1269.

    Google Scholar 

  • Kaplan, R. S. & Norton, D. P. (1992). The Balanced Scorecard: Measures that Drive Performance. Harvard Business Review, 69(1): 71–79.

    Google Scholar 

  • Malmi, T. & Brown, D. A. (2008). Management Control Systems as a Package-Opportunities, Challenges and Research Directions. Management Accounting Research, 19, 287–300.

    Article  Google Scholar 

  • Merchant, K. A. (1985). Control in Business Organizations. Marshfield, MA: Pitman.

    Google Scholar 

  • Otley, D. (1999). Performance Management: A Framework for Management Control Systems. Management Accounting Research, 10(4), 363–382.

    Article  Google Scholar 

  • Ouchi, W. G. (1979). A Conceptual Framework for the Design of Organizational Control Mechanisms. Management Science, 25, 833–848.

    Article  Google Scholar 

  • Piller, R T. & Walcher, D. (2006). Toolkits for Idea Competitions: A Novel Method to Integrate Users in New Product Development. R&D Management, 36(3), 307–318.

    Article  Google Scholar 

  • Preston, A. (1986). Interactions and Anangements in the Process of Informing. Accounting, Organizations and Society, 22(6), 521–540.

    Article  Google Scholar 

  • Rockness, H. & Shields, M. (1984). Organizational Control Systems in Research and Development. Accounting, Organizations, and Society, 9(2), 162–177.

    Article  Google Scholar 

  • Scheytt, T. & Soin, K. (2005). Culture and Control. In A. Berry, J. Broadbent & D. Otley (Eds), Management Control: Theories, Issues and Performance (2nd ed.). New York: Palgrave Macmillan, 192–204.

    Google Scholar 

  • Simons, R. (1990). The Role of Management Control Systems in Creating Competitive Advantage: New Perspectives. Accounting, Organizations, and Society, 25(1/2), 127–143.

    Google Scholar 

  • Simons, R. (1995). Levers of Control: How Managers Use Innovative Control Systems to Drive Strategic Renewal. Boston (MA): Harvard Business School Press.

    Google Scholar 

  • Tessier, S. & Otley, D. (2012). A Conceptual Development of Simons’s Lever of Control Framework. Management Accounting Research, 23, 171–185.

    Article  Google Scholar 

Download references

Authors
  1. Jan Pfister
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Lancaster University, UK

    David Otley

  2. University of Exeter, UK

    Kim Soin

Copyright information

© 2014 Jan Pfister

About this chapter

Cite this chapter

Pfister, J. (2014). Controlling Creativity and Innovation: Paradox or Necessity?. In: Otley, D., Soin, K. (eds) Management Control and Uncertainty. Palgrave Macmillan, London. https://doi.org/10.1057/9781137392121_9

Download citation

Publish with us

Policies and ethics

Search

Navigation