How to Make the Honeymoon Last: Effectiveness of Different Types of Management Controls for Innovation Success in Corporate-Startup Collaborations

Abstract

Working together with startups is common practice in an increasing number of corporate business environments, especially when the goal of innovation takes center stage. Our research objective is to provide empirical results on the relationship between corporate-startup collaborations and innovation success, and how management controls can be beneficial in these collaborations. Using survey data from key decision-makers at 46 established firms in German-speaking countries, analyzed through structural equation modeling (SmartPLS), we uncover five key findings. First, an innovation-oriented corporate strategy significantly enhances innovation success. Second, effective collaboration with startups contributes positively to innovation outcomes. Third, management control system (MCS) effectiveness plays a crucial mediating role in achieving innovation success. Fourth, action controls and personnel controls significantly enhance MCS effectiveness. These findings not only advance the theoretical understanding of collaborative innovation and strategic entrepreneurship but also provide actionable insights for designing effective management controls that bridge strategic intent and innovative outcomes in corporate-startup collaborations.