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Influence of formal and informal controls on trust and individual creativity

Januário José Monteiro (Norwich Business School, University of East Anglia, Norwich Research Park, Norwich, UK)
Rogério João Lunkes (Department of Accounting, Universidade Federal de Santa Catarina, Florianopolis, Brazil)
Fabricia Rosa (Department of Accounting, Universidade Federal de Santa Catarina, Florianopolis, Brazil)

Journal of Accounting & Organizational Change

ISSN: 1832-5912

Article publication date: 5 December 2022

43

Abstract

Purpose

This study aims to analyze the influence of formal and informal controls on trust and individual creativity.

Design/methodology/approach

A survey was conducted with managers of companies listed in Brazil Stock Exchange (Brazil, Bolsa, Balcão-B3), and the final sample was 124 valid responses. The data were analyzed using structural equation modeling and fuzzy set qualitative comparative analysis (FsQCA).

Findings

The results show that the influence of informal controls (cultural and personnel controls) on individual creativity is greater than that of formal controls (action and results controls). It was also found that formal and informal controls facilitate social exchanges between managers by influencing trust. Moreover, the results confirmed the mediation of trust in the relationship between controls and individual creativity. FsQCA demonstrates that formal and informal controls are complemented and, when combined with trust, enable high individual creativity.

Originality/value

The findings contribute to the literature by demonstrating that the effective use of management controls generates greater trust and awakens creative skills in managers.

Keywords

Acknowledgements

The authors appreciate the comments and suggestions of the editor and the two anonymous reviewers. The authors would like to acknowledge the support of Conselho Nacional de Desenvolvimento Científico e Tecnologico (CNPq).

Citation

Monteiro, J.J., Lunkes, R.J. and Rosa, F. (2022), "Influence of formal and informal controls on trust and individual creativity", Journal of Accounting & Organizational Change, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JAOC-08-2021-0122

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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