Do Cultural Controls and Social Media Stimulate Organizational Innovation in Startups?

Authors

DOI:

https://doi.org/10.14392/asaa.2023160306

Keywords:

Cultural Controls, Organizational Innovation, Social Media, Startups

Abstract

Objective: This article examines the role of cultural controls and social media in organizational innovation in startups. Complementarily, it analyzes the possible moderating effect of individual creativity on the relationship between social media and organizational innovation.

Method: A survey was carried out with 110 managers of startups incubated in Brazilian incubators. For the analysis of the data, the technique of structural equation modeling by partial least squares was used.

Results: The results show that cultural controls do not have direct effects on organizational innovation, however, indirect effects are found. In turn, social media proves to play a mediating role in this relationship, in addition to having a direct effect on organizational innovation. In contrast, individual creativity does not show a moderating effect on the relationship between social media and organizational innovation.

Contributions: The findings contribute to the literature by empirically demonstrating possible drivers of organizational innovation, with emphasis on social media, which has been shown to interfere in the magnitude of the relationship between cultural control and organizational innovation and direct effect on organizational innovation. This discovery has important implications for managerial practice in environments that have innovation at the core of their existence, as in the case of startups, since it provides a better understanding of the role of social media in promoting innovation.

Downloads

Download data is not yet available.

References

Ali, A., Bahadur, W., Wang, N., Luqman, A., & Khan, A.N. (2020). Improving team innovation performance: role of social media and team knowledge management capabilities. Technology in Society, 61, 101259. https://doi.org/10.1016/j.techsoc.2020.101259

Allen, B. J., Chandrasekaran, D., & Basuroy, S. (2018). Design crowdsourcing: the impact on new product performance of sourcing design solutions from the “crowd”. Journal of Marketing, 82(2), 106-123. https://doi.org/10.1509/jm.15.0481

Alsalami, E., Behery, M., & Abdullah, S. (2014). Transformational leadership and its effects on organizational learning and innovation: evidence from Dubai. Journal of applied management and entrepreneurship, 19(4), 61. https://doi.org/10.9774/GLEAF.3709.2014.oc.00006

Amabile, T. M., Conti, R., Coon, H., Lazenby, J., & Herron, M. (1996). Assessing the work environment for creativity. Academy of Management Journal, 39(5), 1154-1184. https://doi.org/10.5465/256995

Anderson, N., Potočnik, K., & Zhou, J. (2014). Innovation and creativity in organizations: a State‐of‐the‐Science Review, prospective commentary, and guiding framework. Journal of Management, 40(5), 1297–1333. https://doi.org/10.1177/0149206314527128

Archer-Brown, C., & Kietzmann, J. (2018). Strategic knowledge management and enterprise social media. Journal of Knowledge Management, 22(6), 1288-1309. https://doi.org/10.1108/JKM-08-2017-0359

Baregheh, A., Rowley, J., & Hemsworth, D. (2016). The effect of organisational size and age on position and paradigm innovation. Journal of Small Business and Enterprise Development, 23(3), 768-789. https://doi.org/10.1108/JSBED-06-2015-0065

Bhimani, H., Mention, A. L., & Barlatier, P. J. (2019). Social media and innovation: A systematic literature review and future research directions. Technological Forecasting and Social Change, 144, 251-269. https://doi.org/10.1016/j.techfore.2018.10.007

Bouncken, R. B., Pesch, R., & Kraus, S. (2015). SME innovativeness in buyer–seller alliances: Effects of entry timing strategies and inter-organizational learning. Review of Managerial Science, 9(2), 361-384. https://doi.org/10.1007/s11846-014-0160-6

Cao, Y., Ajjan, H., Hong, P., & Le, T. (2018). Using social media for competitive business outcomes. Journal of Advances in Management Research, 15(2), 211–235. https://doi.org/10.1108/JAMR-05-2017-0060

Chaubey, A., Sahoo, C. K., & Khatri, N. (2019). Relationship of transformational leadership with employee creativity and organizational innovation: a study of mediating and moderating influences. Journal of Strategy and Management, 12(1), 61-82. https://doi.org/10.1108/JSMA-07-2018-0075

Chaubey, A., Sahoo, C. K., & Das, K. C. (2022). Examining the effect of training and employee creativity on organizational innovation: a moderated mediation analysis. International Journal of Organizational Analysis, 30(2), 499-524. https://doi.org/10.1108/IJOA-06-2020-2271

Cheng C. C. J., & Krumwiede, D. (2018). Enhancing the performance of supplier involvement in new product development: the enabling roles of social media and firm capabilities. Supply Chain Management, 23(3), 171-187. https://doi.org/10.1108/SCM-07-2017-0230

Chenhall, R. H. (2003). Management control systems design within its organizational context: findings from contingency-based research and directions for the future. Accounting, Organizations and Society, 28(2-3), 127-168. https://doi.org/10.1016/S0361- 3682(01)00027-7

Chenhall, R. H., & Moers, F. (2015). The role of innovation in the evolution of management accounting and its integration into management control. Accounting, Organizations and Society, 47, 1-13. https://doi.org/10.1016/j.aos.2015.10.002

Colombo, V. L. B., & Beuren, I. M. (2023). Accountants robots in shared service centers: effects of the culture for innovation, work engagement and performance measurement system. Journal of Business & Industrial Marketing, ahead-of-print. https://doi.org/10.1108/JBIM-09-2022-0436

Damanpour, F., & Aravind, D. (2012). Managerial innovation: conceptions, processes and antecedents. Management and Organization Review, 8(2), 423-454. https://doi.org/10.1111/j.1740-8784.2011.00233.x

Davila, A., & Foster, G. (2009). The adoption and evolution of management control systems in entrepreneurial companies: evidence and a promising future. In: Chenhall, R.H. (Ed). Handbooks of management accounting research (3. ed. pp. 1323-1336). Amsterdam: Elsevier.

Davila, A., Foster, G., & Oyon, D. (2009). Accounting and control, entrepreneurship and innovation: Venturing into new research opportunities. European Accounting Review, 18(2), 281-311. https://doi.org/10.1080/09638180902731455

Dougherty, D. (1992) A practice-centered model of organizational renewal through product innovation, Strategic Management Journal, 13(S1), 77-92. https://doi.org/10.1002/smj.4250131007

Faul, F., Erdfelder, E., Buchner, A., & Lang, A. G. (2009). Statistical power analyses using G* Power 3.1: Tests for correlation and regression analyses. Behavior Research Methods, 41(4), 1149-1160. https://doi.org/10.3758/BRM.41.4.1149

Flamholtz, E. G., Das, T. K., & Tsui, A. S. (1985). Toward an integrative framework of organizational control. Accounting, Organizations and Society, 10(1), 35-50. https://doi.org/10.1016/0361-3682(85)90030-3

Frare, A. B., & Beuren, I. M. (2021). Job autonomy, unscripted agility and ambidextrous innovation: analysis of Brazilian startups in times of the Covid-19 pandemic. Revista de Gestão, 28(3), 263-278. https://doi.org/10.1108/REGE-01-2021-0005

Freixanet, J., Braojos, J., Rialp-Criado, A., & Rialp-Criado, J. (2021). Does international entrepreneurial orientation foster innovation performance? The mediating role of social media and open innovation. The International Journal of Entrepreneurship and Innovation, 22(1), 33-44. https://doi.org/10.1177/1465750320922320

Fried, A. (2017). Terminological distinctions of ‘control’: a review of the implications for management control research in the context of innovation. Journal of Management Control, 28(1), 5-40. https://doi.org/10.1007/s00187-016-0240-7

Giordani, M. S., Schlup, D., & Beuren, I. M. (2023). Antecedentes do uso de mídias sociais e seus efeitos na resiliência e inovação de startups. REGEPE Entrepreneurship and Small Business Journal, 12(1). https://doi.org/10.14211/regepe.esbj.e2062

Goebel, S., & Weißenberger, B. E. (2016). The dark side of tight financial control: causes and remedies of dysfunctional employee behaviors. Schmalenbach Business Review, 17(1), 69- 101. https://doi.org/10.1007/s41464-016-0005-8

Goebel, S., & Weißenberger, B. E. (2017). The relationship between informal controls, ethical work climates, and organizational performance. Journal of Business Ethics, 141(3), 505-528. https://doi.org/10.1007/s10551-015-2700-7

Gomez-Conde, J., Lopez-Valeiras, E., Malagueño, R., & Gonzalez-Castro, R. (2021). Management control systems and innovation strategies in business-incubated start-ups. Accounting and Business Research, 53(2), 210-236. https://doi.org/10.1080/00014788.2021.1986365

Gonçalves, M. B., Guardia, M. S., & Guardia, S. R. (2012). As mídias sociais no marketing turístico: um estudo sobre seu uso na promoção do roteiro de Seridó. Carpe Diem: Revista Cultura e Científica do UNIFACEX, 10(10), 1-21.

Gumusluoglu, L., & Ilsev, A. (2009). Transformational leadership, creativity, and organizational innovation. Journal of Business Research, 62(4), 461-473. https://doi.org/10.1016/j.jbusres.2007.07.032

Guo, B., Paraskevopoulou, E., & Sanchez, L. S. (2019). Disentangling the role of management control systems for product and process innovation in different contexts. European Accounting Review, 28(4), 681-712. https://doi.org/10.1080/09638180.2018.1528168

Hair, J. F., Jr., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24. https://doi.org/10.1108/EBR-11-2018-0203

Haussmann, D. C. S., Beuren, I. M., & Klann, R. C. (2021). Reflexos dos controles formais e informais e da aprendizagem na inovação em empresas do Porto Digital. Enfoque: Reflexão Contábil, 40(3), 1-20. https://doi.org/10.4025/enfoque.v40i3.51889

He, W., & Wang, F. K. (2016). A process-based framework of using social media to support innovation process. Information Technology and Management, 17, 263-277. https://doi.org/10.1007/s10799-015-0236-2

Hsieh, Y. J., & Wu, Y. J. (2019). Entrepreneurship through the platform strategy in the digital era: Insights and research opportunities. Computers in Human Behavior, 95, 315-323. https://doi.org/10.1016/j.chb.2018.03.033

Kamboj, S., & Rahman, Z. (2017). Measuring customer social participation in online travel communities. Journal of Hospitality and Tourism Technology, 8(3), 432-464. https://doi.org/10.1108/JHTT-08-2016-0041

Kaplan, A. M., & Haenlein, M. (2010). Users of the world, unite! The challenges and opportunities of Social Media. Business Horizons, 53(1), 59-68. https://doi.org/10.1016/j.bushor.2009.09.003

Kim, Y., Sohn, D., & Choi, S. M. (2011). Cultural difference in motivations for using social network sites: a comparative study of American and Korean college students. Computers in Human Behavior, 27(1), 365–372. https://doi.org/10.1016/j.chb.2010.08.015

Kleine, C., & Weißenberger, B. E. (2014). Leadership impact on organizational commitment: the mediating role of management control systems choice. Journal of Management Control, 24(3), 241-266. https://doi.org/10.1007/s00187-013-0181-3

Lopes, I. F., Beuren, I. M., & Martins, G. D. (2018). Alinhamento entre uso de instrumentos do sistema de controle gerencial e inovação de produtos e processos. Revista Organizações em Contexto, 14(27), 1-27. https://doi.org/10.15603/1982-8756/roc.v14n27p1-27

Malmi, T., & Brown, D. A. (2008). Management control systems as a package—Opportunities, challenges and research directions. Management Accounting Research, 19(4), 287-300. https://doi.org/10.1016/j.mar.2008.09.003

Merchant, K. A., & Otley, D. T. (2007). A review of the literature on control and accountability. In: Chapman, C. S., Hopwood, A. G., & Shields, M. D. (Eds). Handbook of Management Accounting Research (pp. 785-802). Amsterdam: Elsevier.

Merchant, K. A., & Van der Stede, W. A. (2007). Management control systems: performance measurement, evaluation and incentives (2. ed.). London: Prentice Hall.

Moulang, C. (2015). Performance measurement system use in generating psychological empowerment and individual creativity. Accounting & Finance, 55(2), 519-544. https://doi.org/10.1111/acfi.12059

Müller-Stewens, B., Widener, S. K., Möller, K., & Steinmann, J.C. (2020). The role of diagnostic and interactive control uses in innovation. Accounting, Organizations and Society, 80(1), 1-21. https://doi.org/10.1016/j.aos.2019.101078.

Munck, J. C., Tkotz, A., Heidenreich, S., & Wald, A. (2020). The performance effects of management control instruments in different stages of new product development. Journal of Accounting & Organizational Change, 16(2), 259-284. https://doi.org/10.1108/JAOC09-2019-0101

Muninger, M. I., Hammedi, W., & Mahr, D. (2019). The value of social media for innovation: a capability perspective. Journal of Business Research, 95, 116-127. https://doi.org/10.1016/j.jbusres.2018.10.012

Muninger, M. I., Mahr, D., & Hammedi, W. (2022). Social media use: a review of innovation management practices. Journal of Business Research, 143, 140-156. https://doi.org/10.1016/j.jbusres.2022.01.039

Naudé, P., Zaefarian, G., Tavani, Z. N., Neghabi, S., & Zaefarian, R. (2014). The influence of network effects on SME performance. Industrial Marketing Management, 43(4), 630-641. https://doi.org/10.1016/j.indmarman.2014.02.004

Nijssen, E. J., & Ordanini, A. (2020). How important is alignment of social media use and R&D–Marketing cooperation for innovation success?. Journal of Business Research, 116, 1-12. https://doi.org/10.1016/j.jbusres.2020.04.056

Norris, G., & O'Dwyer, B. (2004). Motivating socially responsive decision making: the operation of management controls in a socially responsive organisation. The British Accounting Review, 36(2), 173-196. https://doi.org/10.1016/j.bar.2003.11.004

Ogink, T., & Dong, J. Q. (2019). Stimulating innovation by user feedback on social media: The case of an online user innovation community. Technological Forecasting and Social Change, 144, 295-302. https://doi.org/10.1016/j.techfore.2017.07.029

Ouchi, W. G. (1979). A conceptual framework for the design of organizational control mechanisms. Management Science, 25(9), 833-848. https://doi.org/10.1287/mnsc.25.9.833

Parveen, F., Jaafar, N. I., & Ainin, S. (2016). Social media’s impact on organizational performance and entrepreneurial orientation in organizations. Management Decision, 54(9), 2208-2234. https://doi.org/10.1108/MD-08-2015-0336

Pazetto, C. F., Mannes, S., & Beuren, I. M. (2020). Influência dos sistemas de controle e da folga de tempo na inovação de processos. RAM. Revista de Administração Mackenzie, 21(3). https://doi.org/10.1590/1678-6971/eRAMR200147

Piller, F. T., Vossen, A., & Ihl, C. (2012). From social media to social product development: the impact of social media on co-creation of innovation. Die Unternehmung, 65(1).

Podsakoff, P. M, MacKenzie, S. B., & Podsakoff, N. P. (2012). Sources of method bias in social science research and recommendations on how to control it. Annual Review of Psychology, 63(1), 539-569.

Ramawela, S., & Chukwuere, J. E. (2020). Cultural influence on the adoption of social media platforms by employees. Knowledge Management & E-Learning, 12(3), 344–358. https://doi.org/10.34105/j.kmel.2020.12.018

Roberts, D. L., Piller, F. T., & Lüttgens, D. (2016). Mapping the impact of social media for innovation: The role of social media in explaining innovation performance in the PDMA comparative performance assessment study. Journal of Product Innovation Management, 33, 117-135. https://doi.org/10.1111/jpim.12341

Rosa, F., Lunkes, R. J., Bortoluzzi, D. A., & Monteiro, J. J. (2022). Do cultural controls, eco-learning and environmental strategy lead to high environmental innovation?. Journal of Accounting & Organizational Change, ahead-of-print. https://doi.org/10.1108/JAOC-01-2022-0010

Santos, V., Beuren, I. M., Bernd, D. C., & Fey, N. (2022). Use of management controls and product innovation in startups: intervention of knowledge sharing and technological turbulence. Journal of Knowledge Management, 27(2), 264-284, https://doi.org/10.1108/JKM-08-2021-0629

Scuotto, V., Santoro, G., Bresciani, S., & Del Giudice, M. (2017). Shifting intra‐and inter‐organizational innovation processes towards digital business: an empirical analysis of SMEs. Creativity and Innovation Management, 26(3), 247-255. https://doi.org/10.1111/caim.12221

Simons, R. (1995). Levers of control: How managers use innovative control systems to drive strategic renewal. Boston: Harvard Business Press.

Soomro, B. A., Mangi, S., & Shah, N. (2020). Strategic factors and significance of organizational innovation and organizational learning in organizational performance. European Journal of Innovation Management, 24(2), 481-506. https://doi.org/10.1108/EJIM-05-2019-0114

Taylor, D., King, R., & Smith, D. (2019). Management controls, heterarchy and innovation: a case study of a start-up company. Accounting, Auditing & Accountability Journal, 32(6), 1636-1661. https://doi.org/10.1108/AAAJ-11-2017-3208

Torres, C. (2009). A bíblia do marketing digital: tudo que você queria saber sobre marketing e publicidade na internet e não tinha a quem perguntar. São Paulo: Novatec.

Troise, C., Dana, L. P., Tani, M., & Lee, K. Y. (2022). Social media and entrepreneurship: exploring the impact of social media use of start-ups on their entrepreneurial orientation and opportunities. Journal of Small Business and Enterprise Development, 29(1), 47-73. https://doi.org/10.1108/JSBED-01-2021-0041

Wang, W. Y. C., Pauleen, D. J., & Zhang, T. (2016). How social media applications affect B2B communication and improve business performance in SMEs. Industrial Marketing Management, 54, 4-14. https://doi.org/10.1016/j.indmarman.2015.12.004

Zhang, F., & Zhu, L. (2021). Social media strategic capability, organizational unlearning, and disruptive innovation of SMEs: the moderating roles of TMT heterogeneity and environmental dynamism. Journal of Business Research, 133, 183-193. https://doi.org/10.1016/j.jbusres.2021.04.071

Published

2023-11-20

How to Cite

Beuren, I. M., & Mannes, S. (2023). Do Cultural Controls and Social Media Stimulate Organizational Innovation in Startups?. Advances in Scientific and Applied Accounting, 16(3), 118–131/132. https://doi.org/10.14392/asaa.2023160306

Most read articles by the same author(s)

> >>