Innovation Strategy and Management Control Effectiveness: Implications for Ambidextrous Strategy Outcomes

Abstract

This study clarifies the factors that affect ambidextrous innovation and firm performance. Specifically, we focus on two factors: innovation strategies and the management control package (MCP). An appropriate MCP pattern could influence the success of an ambidextrous strategy. This study draws on Simons’ Levers of Control to analyze the effect of innovation strategies and MCP patterns on the outcomes of ambidexterity. The results show that the interaction between an ambidextrous strategy and the MCP pattern, which emphasizes all levers, can enhance firm performance.