Publication

Management control for stimulating different types of creativity: the role of budgets

Cools, Martine
Stouthuysen, Kristof
Van den Abbeele, Alexandra
Citations
Altmetric:
Publication Type
Journal article
Editor
Supervisor
Publication Year
2017
Journal
Journal of Management Accounting Research
Book
Publication Volume
29
Publication Issue
3
Publication Begin page
1
Publication End page
21
Publication NUmber of pages
Collections
Abstract
In this paper, we examine the role of budgets as a central instrument within the management control system (MCS) in a creative context. In particular we investigate whether creative firms characterized by different kinds of creativity use their budgets in a similar way. We hereby distinguish between expected creativity (for open, self-discovered problems) and responsive creativity (for closed, presented problems) (Unsworth 2001) and investigate the interactive versus diagnostic use of budgets (Simons 1990, 1991, 1995). Based on a comparative study involving four creative firms, we find that creative firms being mainly characterized by expected creativity use their budgets in a more interactive way. In creative firms in which responsive creativity is most important, the budgets are used in a rather diagnostic way. This study contributes to the management control literature by acknowledging that a diagnostic use of budgets does not per se stifle creativity. Instead, it is important to understand that the specific creative context might have implications for the way in which MCS instruments are used to sustain the creative process.
Research Projects
Organizational Units
Journal Issue
Keywords
Accounting & Finance
Citation
Knowledge Domain/Industry
Other links
Embedded videos