Creativity governance: A conceptual framework for tailoring governance to the creativity and uncertainty in entrepreneurial projects

Abstract

AbstractGiven the influence of agency theory, corporate governance is tightly associated with the idea of monitoring. But what happens when the decision‐maker must act in an uncertain, open‐ended world? In this article, we propose a typology of firms' projects drawing on two parameters stemming from recent advancements in creativity theory: opacity and unlikelihood. This results in a matrix with four types of projects that display different qualities of entrepreneurialness: replicative projects, incubation projects, insightful projects, and innovative projects. We draw on the knowledge governance literature to suggest mechanisms and strategies of governance based on the prevailing type of project that the organization pursues. Our framework contributes to the theoretical understanding of the interplay between governance, creativity, and entrepreneurship literature while offering practical insights for designing better‐tailored governance mechanisms that align with a firm's prevailing project type.