Management control in the context of co-creation: the role of contract design in creative collaborative partnerships

The World Economic Forum is ranking creativity as a crucial skill in organizations facing 2020 (Top 10, World Economic Forum, 2015). In order to remain competitive, organizations count on the constant inflow of creative ideas, not only from their employees, but also from their business partners. Collaborative creativity in partnerships, also referred to as ‘co-creation’, is the focus of this research project: while it has many benefits, it is complex to manage, and it might require a solid contract. We aim to investigate 1) whether the impact of contracts on partners' collaborative creativity (PCC) depends on the types of contract provisions (control versus coordination provisions), and whether the motivational climate mediates this relationship; 2) whether the type of creativity plays a key role in the extent to which firms benefit from particular contract provisions in stimulating PCC; 3) how a partner firm’s internal controls may impact the effectiveness of the interfirm contractual provisions in stimulating PCC.

Keywords:collaborative creativity, partnerships, management control, contract design, motivational climate

Disciplines:Strategic management, Accounting and auditing