Keywords: sustained performance, strategy process, theory, programmed innovation, emergent innovation, decision making, strategic control systems, chaotic order, dynamic control mechanisms, interlock, competition, cultural, institutional, game-theoretic, organisational, administrative, affective
Towards a theory of dynamic control mechanisms
In this paper, a theory of dynamic control and how it may contribute towards promoting innovation in the high performing organisation is introduced. Programmed innovation occurs as a result of top down conscious efforts by the top management. Emergent innovation occurs spontaneously from the bottom up. In today's dynamic environments, competitive positioning and strategic adaptation should be vastly improved with the judicious balancing and shifting of programmed and emergent innovation. Dynamic control mechanisms give managers the ability to do this. The common driver behind these control mechanisms is the notion of tight and loose interlocks. Five ideal types of mechanisms work alone and in concert with each other to effect innovation; administrative, institutional, cultural, game-theoretic and affective control mechanisms are described.