Effects of Types of Organizational Problems on the Use of the Management Control System and Organizational Creativity

Creativity is a process through which organizations can find solutions to their problems. However, one must consider the uses of Management Control Systems (MCS) and the types of problems in order to combine them, enabling the stimulation of appropriate creativity for each problem type. Therefore, this study purpose to analyze the effects of types of organizational problems and uses of Management Control Systems (MCS) on the expected and responsive dimensions of organizational creativity. The study has a descriptive character, operationalized through a survey with Brazilian startups. The sample consisted of 101 respondents, and the data were analyzed using Exploratory Factor Analysis and Structural Equation Modeling. The results point to a positive relationship between closed problems and the diagnostic use of MCS and responsive creativity; in addition to a positive relationship between open problems and the interactive use of MCS and expected creativity. The mediation hypotheses were not statistically confirmed. The research advances by showing that management controls in Startups do not positively influence organizational creativity and that Startups use creativity in order to solve organizational problems. The study did not encompass all the Startups in Brazil and their different organizational levels; therefore, the results are not generalizable.