The effects of the performance measurement system debate and cognitive conflict on ambidextrous innovation

Abstract

This study follows the flow of research that investigated the relationship between the performance measurement system and innovation but differs in considering innovation as a multidimensional construct. This study analyzes the effects of the performance measurement system debate and cognitive conflict on ambidextrous innovation. A survey was conducted with managers of companies listed in Brazil Bolsa Balcão (B3), according to the ranking of research and development values and intangible assets, and 124 valid answers were obtained. To test the hypotheses we used the structural equation modeling technique. The results revealed that the performance measurement system debate positively influences ambidextrous innovation and that cognitive conflict moderates this relationship. It is concluded that discussions between managers about performance measures allow the problem-solving, pursuit of learning, creativity, and innovation, especially when intensified by cognitive conflict.