The effects of organic and mechanistic control in exploratory and exploitative innovations |
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| Institution: | 1. Vaasan ammattikorkeakoulu, University of Applied Sciences, Raastuvankatu 31-33, FI-65100 Vaasa, Finland;2. Hanken School of Economics, Handelsesplanaden 2, FI-65100 Vaasa, Finland;1. HEC Lausanne, Faculty of Business and Economics, University of Lausanne, 1015 Lausanne, Switzerland;2. IESE Business School, University of Navarra, Avenida Pearson, 21, 08034 Barcelona, Spain;1. School of Business and Economics, Loughborough University, Ashby Road, Loughborough LE11 4BP, UK;2. Dublin City University, Dublin, Ireland;1. Department of Business and Management, Aalborg University, Fibigerstraede 11, DK-9220 Aalborg, Denmark;2. Center for Industrial Production, Department of Business and Management, Aalborg University, Fibigerstraede 10, DK-9220 Aalborg Oest, Denmark;1. Warwick Business School, Aberconway Building, Colum Drive, Cardiff CF10 3EU, UK;2. Business School, Loughborough University, Ashby Road, Loughborough LE11 3TU, UK;3. College of Business, Pittsburgh State University, 1701 South Broadway Street, Pittsburgh, KS 66762, USA;4. School of Accounting and Commercial Law, Victoria University of Wellington, P.O. Box 600, Wellington, New Zealand |
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| Abstract: | This study investigates the indirect effects of mechanistic and organic types of control on project performance acting through innovativeness in exploratory and exploitative innovation projects. It also examines the interaction effect of these controls on performance. The research model is empirically tested with survey data from 119 projects in various project organizations, using Partial Least Squares (PLS) with controls for the size of the project and task uncertainty. The results illustrate that organic control, acting through innovativeness on project performance is an important form of control in exploratory innovations, and also enhances performance in exploitative innovations. In addition, the results indicate that the interaction effect of organic and mechanistic control types enhances performance in both exploratory and exploitative innovation projects, suggesting a complementary effect. The findings are discussed in relation to theory and their managerial implications. |
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| Keywords: | Management control systems Exploitation Exploration Innovation project Performance Tension |
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