Fostering individual creativity in startups: comprehensive performance measurement systems, role clarity and strategic flexibility

Abstract

Purpose

The purpose of this study is to investigate the effects of comprehensive performance measurement systems (PMS), role clarity and strategic flexibility on the individual creativity of founders/managers of startups.

Design/methodology/approach

The research population comprises 611 Brazilian startups in the e-commerce, retail and wholesale segments. One owner/manager of each startup was contacted by the survey, obtaining 91 valid responses. For data analysis, symmetric and asymmetric techniques were applied, respectively: partial least squares-structural equation modeling and fuzzy-set qualitative comparative analysis.

Findings

The findings show that the comprehensive PMS is an important predictor of individual creativity, role clarity and strategic flexibility. Role clarity has a direct effect on creativity and promotes partial mediation between comprehensive PMS and creativity. Comprehensive PMS and role clarity are of great importance and have high performance in favor of creativity, while strategic flexibility has high performance, but is of low importance. Several causal combinations promote high individual creativity.

Practical implications

It offers founders/managers an insight into the aspects that are worth of efforts to foster individual creativity in their startup.

Originality/value

The key contribution of the study is that the comprehensive PMS, which includes financial, non-financial and other measures for product and process innovation, can directly and indirectly (through role clarity) influence individual creativity.

Citation

Frare, A.B. and Beuren, I.M. (2021), "Fostering individual creativity in startups: comprehensive performance measurement systems, role clarity and strategic flexibility", European Business Review, Vol. 33 No. 6, pp. 869-891. https://doi.org/10.1108/EBR-11-2020-0262