Organizational studies have tended to focus on one type of innovation without consideration of others. However, organizational competitiveness is contingent upon two forms of innovation: process and product innovation. In this study, we use the knowledge-based view to highlight how control mechanisms (input and output) differentially motivate individuals to engage in information-processing behaviors. Our model highlights how the information-processing aspects of controls determine organizational members’ innovation-related activities by influencing their perceptions of managerial support. We test our hypotheses on data collected from 207 individuals across 51 R&D teams in a large MNC. Our results suggest managers should design control systems to both emphasize skill development in order to facilitate employees adopting new process innovation as well as focus on performance goals to inspire new product innovation. The findings also indicate that organizational members perceive managers as more supportive when skill acquisition rather than outcomes is stressed.
A KNOWLEDGE-BASED VIEW OF INNOVATION: THE ROLE OF INPUT AND OUTPUT CONTROLS
Alberto Monti
2017-01-01
Abstract
Organizational studies have tended to focus on one type of innovation without consideration of others. However, organizational competitiveness is contingent upon two forms of innovation: process and product innovation. In this study, we use the knowledge-based view to highlight how control mechanisms (input and output) differentially motivate individuals to engage in information-processing behaviors. Our model highlights how the information-processing aspects of controls determine organizational members’ innovation-related activities by influencing their perceptions of managerial support. We test our hypotheses on data collected from 207 individuals across 51 R&D teams in a large MNC. Our results suggest managers should design control systems to both emphasize skill development in order to facilitate employees adopting new process innovation as well as focus on performance goals to inspire new product innovation. The findings also indicate that organizational members perceive managers as more supportive when skill acquisition rather than outcomes is stressed.
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