The relationship between management control systems and innovativeness in start-ups: evidence for product, business model, and ambidextrous innovation

Abstract

Purpose

This paper aims to analyze the relationship between the use of management control systems (MCSs) and innovativeness in start-ups pursuing product innovation (PI), business model innovation (BMI) or ambidextrous innovation (both PI and BMI ).

Design/methodology/approach

This paper reports on survey data collected at 143 European start-ups using a structured questionnaire sent to a member of the top management team at each firm.

Findings

The authors find that the control levers and their interdependencies associated with increased innovativeness significantly differ between the different forms of innovation.

Practical implications

The study provides important guidance for entrepreneurs so that they can effectively support their innovation agenda with the MCSs tailored to their needs.

Originality/value

This research contributes to a growing literature that shows the positive role of MCSs in innovative and entrepreneurial processes. It adds to the understanding of the multifaceted nature of innovation and the crucial importance of BMI and ambidextrous innovation for the success of start-ups.

Citation

Endenich, C., Lachmann, M., Schachel, H. and Zajkowska, J. (2023), "The relationship between management control systems and innovativeness in start-ups: evidence for product, business model, and ambidextrous innovation", Journal of Accounting & Organizational Change, Vol. 19 No. 5, pp. 706-734. https://doi.org/10.1108/JAOC-06-2022-0087