Effect of learning culture and management control system on innovation performance: Evidence from startup companies in Indonesia

Abstract

The startup must be able to innovate in response to the uncertainty of the business environment, which is changing rapidly along with advances in technology. This study aims to analyze the relationship between learning culture, belief, boundary control, dynamic capabilities, and innovation performance. Quantitative methods with AMOS and structural equation modeling were used to test 260 samples. Questionnaires were distributed among startup companies in Banten Province, Indonesia. The research results show that dynamic capabilities and the development of management control systems are influenced by learning culture. The findings inform that a strong learning culture attitude produces company confidence and a management boundary control system that can adapt to uncertain environmental changes. Startup companies should motivate their personnel to improve competence through a learning culture. The role of innovation performance is also indirectly influenced by beliefs and boundary control systems. Recognition of personnel abilities and contributions in collaboration with external sources opens up opportunities to compete in business. This finding is a key factor explaining that startup companies must face a rapidly changing environment by optimizing management’s ability to innovate, implementing management control systems routinely, and building a trust system to inspire and motivate employees.