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Shows the impact of CEO creativity on organizational creativity in SMEs, suggesting enhanced control systems can help.
Organizations strive to enhance organizational creativity (OC). Understanding the conditions under which CEO creativity is associated with OC is important for designing effective control systems. We theorize that the interactive use of management control systems (MCS) may moderate the association between CEO creativity and OC. We further propose that family firm status may strengthen this moderating effect. Drawing on survey data from 112 Danish small- and medium-sized enterprises (SMEs), we show that CEO creativity is positively associated with OC and that this association is stronger when the interactive use of MCS is high. In addition, the complementarity between CEO creativity and the interactive use of MCS is more pronounced in family firms than in non-family firms. These findings suggest that organizations can leverage the interactive use of MCS to strengthen the association between CEO creativity and OC, with particular benefits in family firm contexts. Data Availability: The data that support the findings of this study are not publicly available due to confidentiality restrictions imposed by the participating organizations. JEL Classifications: M41; M12; O31.
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Anees et al. (2026) studied this question.
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