Performance measurement system use in generating psychological empowerment and individual creativity

Individual creativity is essential to an organisation's ability to innovate (Amabile, 1988, 1996), and potentially, management control systems could be used to enhance or constrain this creativity in organisations (Amabile, 1988; Davila et al., 2009). The purpose of this study is to develop an understanding of how interactive performance measurement system (IPMS) use is implicated in the generation of individual creativity. A conceptual framework linking IPMS use to creativity is developed, incorporating psychological empowerment as an intervening variable. The results of a survey of middle‐level managers confirm that IPMS use impacts on creativity through the psychological construct of psychological empowerment.