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Published in: Journal of Management Control 4/2023

26-02-2024 | Original Paper

The role of informal controls in a green innovative setting: evidence from Brazilian AgTechs

Authors: Anderson Betti Frare, Ilse Maria Beuren

Published in: Journal of Management Control | Issue 4/2023

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Abstract

Agriculture technology startups (AgTechs) must align innovation interests with green sustainability, amplifying managerial challenges. Therefore, this study aims to examine the role of informal controls, green learning, and green creativity in green process innovation of AgTechs. Data from 82 Brazilian AgTechs are analyzed by partial least squares-structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA). The results show that informal controls are directly and indirectly (mediated by green learning and green creativity) associated with green process innovation. Thus, green learning and green creativity mediate to facilitate that informal controls orchestrate green process innovation. Furthermore, two causal solutions lead AgTechs to high green process innovation. This study contributes by exploring the roles of informal controls, learning, creativity, and innovation in the green innovative setting of AgTechs. The findings are relevant for founders, managers, and stakeholders to promote the green sustainability of AgTechs. Agribusiness is one of the primary sectors of the Brazilian economy. Therefore, AgTechs have a broad field to offer technological solutions for agribusiness. Consequently, understanding how these startups align innovation and sustainability to generate cleaner and sustainable production is relevant to stakeholders and society.

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Appendix
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Footnotes
1
Although informal controls may eventually include some formal elements (e.g., explicit codifications of values, symbols or norms, and procedure manuals), they are “typically supposed to be more informal than formal due to their rather indirect influence on employees’  behaviors” (Goebel & Weißenberger, 2017b, p. 509).
 
2
Kleine and Weißenberger (2014) reported a correlation of 0.648; Goebel and Weißenberger (2017a), a correlation of 0.643; and Goebel and Weißenberger (2017a), a correlation of 0.650 between the personnel control and cultural control variables.
 
3
For more details on higher-order modeling by the repeated indicators approach in the PLS-SEM see Sarstedt et al. (2019).
 
4
We conducted a complementary analysis in addition to the models presented in Table 4. Based on the assumption that there are synergies between learning, creativity, and innovation in organizations (Huber, 1998), in an additional (untabulated) analysis using an interaction term, we tested the combined effect of green learning and green creativity on GPI. The results show a positive and significant effect (β = 0.152, t = 1.899, p = 0.058), and all the other relationships remain qualitatively unchanged. This finding further reinforces the role of green learning and green creativity as enablers of GPI, either separately or combined.
 
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Metadata
Title
The role of informal controls in a green innovative setting: evidence from Brazilian AgTechs
Authors
Anderson Betti Frare
Ilse Maria Beuren
Publication date
26-02-2024
Publisher
Springer Berlin Heidelberg
Published in
Journal of Management Control / Issue 4/2023
Print ISSN: 2191-4761
Electronic ISSN: 2191-477X
DOI
https://doi.org/10.1007/s00187-024-00367-4

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