Innovation, control and the expectations gap

D.H. Drury

International Journal of Entrepreneurship and Innovation Management, 2004, vol. 4, issue 1, 50-72

Abstract: Both innovation and control are recognised by organisations as ensuring productivity, growth and survival. Innovation is associated with creative processes, while the essence of control is conformity and adherence to organisational objectives. The possibility that innovation with control may be antithetical has not escaped attention. The arguments relating control to innovation are examined. The relationship has been alluded to on many occasions in the literature. Preponderantly, writers suggest that innovation and control are negatively related. At the same time, strong arguments also exist for a positive or complementary relationship. However, the empirical evidence reviewed supporting either view is scarce and contradictory. Key relationships examined include the effects of performance gaps, risk and return preferences. Types of innovation and variations in control approaches are addressed. The analytical results indicate that, when specific conditions exist, control will enhance innovation initiatives. The final section places the controversy over the effect of control on innovation into the perspective of reducing barriers to innovation. Practical issues are addressed as well as suggestions for future research.

Keywords: innovation; control; risk assessment; utility preferences; performance gaps; returns expectations. (search for similar items in EconPapers)
Date: 2004
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