Use of management controls and product innovation in startups: intervention of knowledge sharing and technological turbulence
Journal of Knowledge Management
ISSN: 1367-3270
Article publication date: 9 February 2022
Issue publication date: 1 February 2023
Abstract
Purpose
The purpose of this paper is to analyze the influence of the use of different types of management controls (cost information, budget information, nonfinancial indicators and informal controls) on product innovation mediated by knowledge sharing and moderated by technological turbulence.
Design/methodology/approach
Partial least squares structural equation modeling and fuzzy-set qualitative comparative analysis have been used in a sample of 142 Brazilian startups that are in the traction stage.
Findings
Informal controls and nonfinancial indicators are used for product innovation, while budget information and cost information have not been shown to be directly associated with product innovation. However, as technological turbulence increases, budget information becomes particularly relevant to the innovation process. Informal controls are directly related to knowledge sharing in the startups studied.
Practical implications
The results can be useful to managers of startups in the traction stage, as the research highlights different management controls and possible combinations that can be used to drive product innovation, in addition to highlighting the role of knowledge sharing in promoting innovation, especially in the context of technological turbulence.
Originality/value
The literature on management control systems (MCS) has challenged the traditional belief that their use is restricted to the entrepreneurial stance of startup companies. The study develops an understanding of how and under what conditions the presence of MCS supports innovation in startup companies, in particular, what types of management controls used by these companies impact product innovation.
Keywords
Acknowledgements
The authors are grateful to two anonymous reviewers and the editor for their constructive comments and guidance. Authors thank the participants of the 22nd USP International Conference in Accounting for helpful comments. This work was supported by the Coordination for the Improvement of Higher Education Personnel (Coordination for the Improvement of Higher Education Personnel – CAPES), Brazil, under Finance Code 001.
Citation
Santos, V.d., Beuren, I.M., Bernd, D.C. and Fey, N. (2023), "Use of management controls and product innovation in startups: intervention of knowledge sharing and technological turbulence", Journal of Knowledge Management, Vol. 27 No. 2, pp. 264-284. https://doi.org/10.1108/JKM-08-2021-0629
Publisher
:Emerald Publishing Limited
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