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06.03.2019 | Original Paper

Beyond the “good” and “evil” of stability values in organizational culture for managerial innovation: the crucial role of management controls

Zeitschrift:
Review of Managerial Science
Autoren:
Marc Janka, Xaver Heinicke, Thomas W. Guenther
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Abstract

Previous literature has widely regarded stability values in organizational cultures as a necessary “evil” at best and proposed their reduction to shape innovation. Our study expands the literature by empirically exploring the relationship between stability values in the organizational culture, management control (MC), and managerial innovation. Managerial innovation is important for every organization because it contributes to technological innovation in the long term and is directly or indirectly associated with firm performance in a positive way, but its success or failure depends on a process of diffusion through the organization as a social system. Based on a survey of 260 large German firms, we find that managerial innovation has a negative association with the degree of internal stability in organizational culture but a positive association with an emphasis on three of the four tested MCs, namely, action controls, personnel controls, and cultural controls. We reveal that a large extent of the negative effect ascribed to internal stability is caused by a lack of emphasis on cultural controls in organizational cultures with a high degree of internal stability rather than by the degree of internal stability itself. Furthermore, we go beyond the assessment of internal stability as purely “good” or “evil” by finding empirical evidence for a positive fit between internal stability and cultural controls for managerial innovation, following contingency theory. According to our findings, organizations with a relatively high degree of internal stability may be enabled to shape managerial innovation through cultural controls.

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