Exploring the relationships between strategy, innovation, and management control systems: The roles of social networking, organic innovative culture, and formal controls

Robert H. Chenhall, Juha Pekka Kallunki, Hanna Silvola

Research output: Contribution to journalArticleResearchpeer-review

Abstract

This paper is concerned with the relationship between strategy, management control systems (MCS), and innovation. MCS are described in terms of a package of controls that is comprised of social networking, organic innovative culture, and formal controls. We develop a path model that proposes that product differentiation is associated with more extensive innovation. It is argued that this association is explained, in part, by paths from product differentiation to the three dimensions of MCS, and then paths from these MCS dimensions to innovation. Using a survey of Russian enterprises we confirm that product differentiation is associated with innovation. Also, product differentiation is associated with each dimension of the MCS. Organic innovative culture and formal controls have direct paths to innovation, while social networking has an effect on innovation by acting indirectly through its connection with organic innovative culture.

Original languageEnglish
Pages (from-to)99-128
Number of pages30
JournalJournal of Management Accounting Research
Volume23
Issue number1
DOIs
Publication statusPublished - Dec 2011

Keywords

  • Formal management control systems
  • Innovation
  • Organic innovative culture
  • Product differentiation
  • Social networking

Cite this

@article{e0b1df19d7da4b4dbe0cdb57c77d5a7a,
title = "Exploring the relationships between strategy, innovation, and management control systems: The roles of social networking, organic innovative culture, and formal controls",
abstract = "This paper is concerned with the relationship between strategy, management control systems (MCS), and innovation. MCS are described in terms of a package of controls that is comprised of social networking, organic innovative culture, and formal controls. We develop a path model that proposes that product differentiation is associated with more extensive innovation. It is argued that this association is explained, in part, by paths from product differentiation to the three dimensions of MCS, and then paths from these MCS dimensions to innovation. Using a survey of Russian enterprises we confirm that product differentiation is associated with innovation. Also, product differentiation is associated with each dimension of the MCS. Organic innovative culture and formal controls have direct paths to innovation, while social networking has an effect on innovation by acting indirectly through its connection with organic innovative culture.",
keywords = "Formal management control systems, Innovation, Organic innovative culture, Product differentiation, Social networking",
author = "Chenhall, {Robert H.} and Kallunki, {Juha Pekka} and Hanna Silvola",
year = "2011",
month = "12",
doi = "10.2308/jmar-10069",
language = "English",
volume = "23",
pages = "99--128",
journal = "Journal of Management Accounting Research",
issn = "1049-2127",
publisher = "American Accounting Association",
number = "1",

}

Exploring the relationships between strategy, innovation, and management control systems : The roles of social networking, organic innovative culture, and formal controls. / Chenhall, Robert H.; Kallunki, Juha Pekka; Silvola, Hanna.

In: Journal of Management Accounting Research, Vol. 23, No. 1, 12.2011, p. 99-128.

Research output: Contribution to journalArticleResearchpeer-review

TY - JOUR

T1 - Exploring the relationships between strategy, innovation, and management control systems

T2 - The roles of social networking, organic innovative culture, and formal controls

AU - Chenhall, Robert H.

AU - Kallunki, Juha Pekka

AU - Silvola, Hanna

PY - 2011/12

Y1 - 2011/12

N2 - This paper is concerned with the relationship between strategy, management control systems (MCS), and innovation. MCS are described in terms of a package of controls that is comprised of social networking, organic innovative culture, and formal controls. We develop a path model that proposes that product differentiation is associated with more extensive innovation. It is argued that this association is explained, in part, by paths from product differentiation to the three dimensions of MCS, and then paths from these MCS dimensions to innovation. Using a survey of Russian enterprises we confirm that product differentiation is associated with innovation. Also, product differentiation is associated with each dimension of the MCS. Organic innovative culture and formal controls have direct paths to innovation, while social networking has an effect on innovation by acting indirectly through its connection with organic innovative culture.

AB - This paper is concerned with the relationship between strategy, management control systems (MCS), and innovation. MCS are described in terms of a package of controls that is comprised of social networking, organic innovative culture, and formal controls. We develop a path model that proposes that product differentiation is associated with more extensive innovation. It is argued that this association is explained, in part, by paths from product differentiation to the three dimensions of MCS, and then paths from these MCS dimensions to innovation. Using a survey of Russian enterprises we confirm that product differentiation is associated with innovation. Also, product differentiation is associated with each dimension of the MCS. Organic innovative culture and formal controls have direct paths to innovation, while social networking has an effect on innovation by acting indirectly through its connection with organic innovative culture.

KW - Formal management control systems

KW - Innovation

KW - Organic innovative culture

KW - Product differentiation

KW - Social networking

UR - http://www.scopus.com/inward/record.url?scp=84856327959&partnerID=8YFLogxK

U2 - 10.2308/jmar-10069

DO - 10.2308/jmar-10069

M3 - Article

VL - 23

SP - 99

EP - 128

JO - Journal of Management Accounting Research

JF - Journal of Management Accounting Research

SN - 1049-2127

IS - 1

ER -