Management Control Systems, Bricolage, and Frugal Innovation: Effects on Value Creation in Startups With a Social Mission

ABSTRACT This study analyzes the effects of the management control systems (social networking and organic innovative culture), via bricolage and frugal innovation, in the social and economic value creation of startups with a social mission. Data from 118 Brazilian startups with a social mission were analyzed using structural equation modeling and fuzzy‐set qualitative comparative analysis. The results reveal that social networking and organic innovative culture foster bricolage, which results in frugal innovation and, consequently, creates social and economic value. Frugal innovation also provides ambidextrous value creation, a concept employed to describe the achievement of balance in high levels of value creation (social and economic simultaneously). Moreover, several combinations of conditions lead startups to high (or low) value creation. We conclude that management control systems, bricolage, and frugal innovation are relevant antecedents of managing the hybrid business orientation (social and economic) of startups with a social mission.