Controlling Innovation in Complex Organizations

Project: Research

Description

Delegating innovation to lower organizational levels raises a management challenge: How to ensure that the various units engage in the “right” innovation efforts – those that are best for the organization as a whole? One lever through which managers direct the collective actions of such complex organizations is through their firms’ control systems: managers design goals and strategic plans for lower-level units, measure performance, and adjust goals and plans accordingly. Our understanding of how to control innovation, however, is limited by two gaps in extant theory: (1) an aggregation problem: how lower-level innovation efforts in response to a control system translate to organization-level outcomes; (2) and an adaptation problem: how the control system itself should adapt, given that innovation is often triggered by a changing environment. Combining work in organization science with insights from management accounting and control theory allows addressing these questions.

Layman's description

Engelsk
StatusActive
Effective start/end date01/09/201731/08/2021