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• W2186877912 abstract "Should management control the front end of innovation in companies? And if so, how? This thesis examines the use of management control in the front end of innovation, how the different management control mechanisms are associated with front end performance, and how technology and market uncertainty influence this relationship. The front end of innovation is generally regarded as the most troublesome phase of the innovation process and at the same time as one of the greatest opportunities to improve the overall innovation capability of a company. The front end of innovation has been characterized as a highly uncertain and creative phase, thereby requiring considerable amounts of freedom and independence for those executing front end activities. However, a certain amount of control is necessary to secure the effective use of resources and the achievement of the company's strategic goals. The current findings on management control and its influence on performance in a new product development context in general are conflicting. For example, while many authors argue that behavioral control kills creativity, others emphasize the advantages of improved communication and coordination created by process formalization. Some authors stress the importance of setting specific and challenging strategic goals for development work, yet other articles indicate this inhibits creativity and learning. One challenge in interpreting the conflicting results of existing management control research in a new product development context is the fact that most studies treat the front end of innovation simultaneously with product development projects, thereby averaging the totally different characteristics of these two innovation phases. Studies investigating management control in the front end of innovation are still scarce. This theoretical gap is the focus of this thesis. This study develops a framework for management control in the front end of innovation and tests hypotheses on the relationship between different management control mechanisms and front end performance. Management control is covered through seven variables: input control, front end process formalization, outcome-based rewarding, strategic vision, informal communication, participative planning, and intrinsic task motivation. Product concept superiority and strategic renewal are used as front end performance indicators, reflecting both the short-term and long-term development needs of the organization. The influence of technology and market uncertainty as potential moderators on the control mechanism-performance relationship is investigated in relation to front end process formalization and outcome-based rewarding. Data from the front end phase of 133 new product development projects from different large and medium-sized Finnish companies have been collected and analyzed. A factor model was used to test the validity of the management control framework and a linear regression analysis used for hypothesis testing. The results show that management control mechanisms are…" @default.
• W2186877912 created "2016-06-24" @default.
• W2186877912 creator A5056216928 @default.
• W2186877912 date "2009-01-01" @default.
• W2186877912 modified "2023-09-23" @default.
• W2186877912 title "Management Control in the Front End of Innovation" @default.
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