Influence of formal and informal controls on trust and individual creativity

PurposeThis study aims to analyze the influence of formal and informal controls on trust and individual creativity. Design/methodology/approachA survey was conducted with managers of companies listed in Brazil Stock Exchange (Brazil, Bolsa, Balcao-B3), and the final sample was 124 valid responses. The data were analyzed using structural equation modeling and fuzzy set qualitative comparative analysis (FsQCA). FindingsThe results show that the influence of informal controls (cultural and personnel controls) on individual creativity is greater than that of formal controls (action and results controls). It was also found that formal and informal controls facilitate social exchanges between managers by influencing trust. Moreover, the results confirmed the mediation of trust in the relationship between controls and individual creativity. FsQCA demonstrates that formal and informal controls are complemented and, when combined with trust, enable high individual creativity. Originality/valueThe findings contribute to the literature by demonstrating that the effective use of management controls generates greater trust and awakens creative skills in managers.