Impact of external stimuli and management control systems on radical innovation and startup performance
The rapidly changing business environment and fierce competition necessitate startups to innovate continuously. External stimuli such as market trends, technological advancements, and competition are critical in influencing a startup’s ability to innovate and enhance performance. This study aims to...
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LLC "CPC "Business Perspectives"
2025-03-01
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| Series: | Problems and Perspectives in Management |
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| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21887/PPM_2025_01_Piliang.pdf |
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| _version_ | 1850206679765876736 |
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| author | Arfah Piliang Meutia Elvin Bastian Munawar Muchlish |
| author_facet | Arfah Piliang Meutia Elvin Bastian Munawar Muchlish |
| author_sort | Arfah Piliang |
| collection | DOAJ |
| description | The rapidly changing business environment and fierce competition necessitate startups to innovate continuously. External stimuli such as market trends, technological advancements, and competition are critical in influencing a startup’s ability to innovate and enhance performance. This study aims to explore the role of these external stimuli, along with management control systems, specifically diagnostic and interactive systems, in promoting radical innovations and improving startup performance. A quantitative approach using partial least squares structural equation modeling (PLS-SEM) was applied to data collected from 250 startup managers in Indonesia. The results show that external stimuli significantly influence diagnostic (p < 0.001, t = 3.647) and interactive control systems (p < 0.001, t = 5.452). Diagnostic and interactive systems positively affect radical innovation (p < 0.001, t = 3.362). Radical innovation significantly enhances performance (p < 0.001, t = 3.453). Such evidence shows that external stimuli and control systems should be aligned to facilitate radical innovation and increase startup performance. The study offers valuable information for managers on how to achieve operational control but retain strategic flexibility in rapidly changing situations. The findings present both theoretical and practical contributions to strategic management and innovation processes in startup companies. |
| format | Article |
| id | doaj-art-a8c487a3f5924f2d8e8ea738e64d02b6 |
| institution | OA Journals |
| issn | 1727-7051 1810-5467 |
| language | English |
| publishDate | 2025-03-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj-art-a8c487a3f5924f2d8e8ea738e64d02b62025-08-20T02:10:42ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672025-03-0123167368410.21511/ppm.23(1).2025.5021887Impact of external stimuli and management control systems on radical innovation and startup performanceArfah Piliang0https://orcid.org/0009-0004-5591-0658Meutia1https://orcid.org/0000-0003-2145-7942Elvin Bastian2https://orcid.org/0009-0001-8221-8796Munawar Muchlish3https://orcid.org/0000-0002-1089-5552Doctoral Student, Faculty of Economics, Sultan Ageng Tirtayasa University, IndonesiaLecturer, Department of Management, Faculty of Economic and Business, Universitas Sultan Ageng Tirtayasa [Sultan Ageng Tirtayasa University], IndonesiaDoctor, Lecturer, Department of Accounting, Faculty of Economics and Business, Universitas Sultan Ageng Tirtayasa [Sultan Ageng Tirtayasa University], IndonesiaDoctor, Lecturer, Faculty of Economics, Sultan Ageng Tirtayasa University, IndonesiaThe rapidly changing business environment and fierce competition necessitate startups to innovate continuously. External stimuli such as market trends, technological advancements, and competition are critical in influencing a startup’s ability to innovate and enhance performance. This study aims to explore the role of these external stimuli, along with management control systems, specifically diagnostic and interactive systems, in promoting radical innovations and improving startup performance. A quantitative approach using partial least squares structural equation modeling (PLS-SEM) was applied to data collected from 250 startup managers in Indonesia. The results show that external stimuli significantly influence diagnostic (p < 0.001, t = 3.647) and interactive control systems (p < 0.001, t = 5.452). Diagnostic and interactive systems positively affect radical innovation (p < 0.001, t = 3.362). Radical innovation significantly enhances performance (p < 0.001, t = 3.453). Such evidence shows that external stimuli and control systems should be aligned to facilitate radical innovation and increase startup performance. The study offers valuable information for managers on how to achieve operational control but retain strategic flexibility in rapidly changing situations. The findings present both theoretical and practical contributions to strategic management and innovation processes in startup companies.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21887/PPM_2025_01_Piliang.pdfenvironmentIndonesiainnovationmanagement control systemmarket competitionperformance |
| spellingShingle | Arfah Piliang Meutia Elvin Bastian Munawar Muchlish Impact of external stimuli and management control systems on radical innovation and startup performance Problems and Perspectives in Management environment Indonesia innovation management control system market competition performance |
| title | Impact of external stimuli and management control systems on radical innovation and startup performance |
| title_full | Impact of external stimuli and management control systems on radical innovation and startup performance |
| title_fullStr | Impact of external stimuli and management control systems on radical innovation and startup performance |
| title_full_unstemmed | Impact of external stimuli and management control systems on radical innovation and startup performance |
| title_short | Impact of external stimuli and management control systems on radical innovation and startup performance |
| title_sort | impact of external stimuli and management control systems on radical innovation and startup performance |
| topic | environment Indonesia innovation management control system market competition performance |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21887/PPM_2025_01_Piliang.pdf |
| work_keys_str_mv | AT arfahpiliang impactofexternalstimuliandmanagementcontrolsystemsonradicalinnovationandstartupperformance AT meutia impactofexternalstimuliandmanagementcontrolsystemsonradicalinnovationandstartupperformance AT elvinbastian impactofexternalstimuliandmanagementcontrolsystemsonradicalinnovationandstartupperformance AT munawarmuchlish impactofexternalstimuliandmanagementcontrolsystemsonradicalinnovationandstartupperformance |