Arfah Piliang

The startup must be able to innovate in response to the uncertainty of the business environment, which is changing rapidly along with advances in technology. This study aims to analyze the relationship between learning culture, belief, boundary control, dynamic capabilities, and innovation performance. Quantitative methods with AMOS and structural equation modeling were used to test 260 samples. Questionnaires were distributed among startup companies in Banten Province, Indonesia. The research results show that dynamic capabilities and the development of management control systems are influenced by learning culture. The findings inform that a strong learning culture attitude produces company confidence and a management boundary control system that can adapt to uncertain environmental changes. Startup companies should motivate their personnel to improve competence through a learning culture. The role of innovation performance is also indirectly influenced by beliefs and boundary control systems. Recognition of personnel abilities and contributions in collaboration with external sources opens up opportunities to compete in business. This finding is a key factor explaining that startup companies must face a rapidly changing environment by optimizing management’s ability to innovate, implementing management control systems routinely, and building a trust system to inspire and motivate employees.

The rapidly changing business environment and fierce competition necessitate startups to innovate continuously. External stimuli such as market trends, technological advancements, and competition are critical in influencing a startup’s ability to innovate and enhance performance. This study aims to explore the role of these external stimuli, along with management control systems, specifically diagnostic and interactive systems, in promoting radical innovations and improving startup performance. A quantitative approach using partial least squares structural equation modeling (PLS-SEM) was applied to data collected from 250 startup managers in Indonesia. The results show that external stimuli significantly influence diagnostic (p < 0.001, t = 3.647) and interactive control systems (p < 0.001, t = 5.452). Diagnostic and interactive systems positively affect radical innovation (p < 0.001, t = 3.362). Radical innovation significantly enhances performance (p < 0.001, t = 3.453). Such evidence shows that external stimuli and control systems should be aligned to facilitate radical innovation and increase startup performance. The study offers valuable information for managers on how to achieve operational control but retain strategic flexibility in rapidly changing situations. The findings present both theoretical and practical contributions to strategic management and innovation processes in startup companies.