PhD defence D.N.D (Desiree) Meurs

Below is a brief summary of the dissertation:

Small and medium-sized enterprises (SMEs) operate in an increasingly dynamic environment in which innovation and employee well-being are essential for achieving sustainable organizational performance. While formal management control mechanisms (hard controls) have received considerable attention in the literature, less is known about the role of informal management control mechanisms (soft controls). This dissertation therefore addresses the following central research question: What role do informal management control mechanisms play in SMEs?
The dissertation comprises four empirical studies based on qualitative and quantitative data collected in the Netherlands and across Europe. Self-Determination Theory serves as the primary theoretical framework, complemented by Contingency Theory and the Resource-Based View. The findings demonstrate that informal management control mechanisms are widely used within SMEs, although the intensity of their use varies among managers. These differences are only partially explained by organizational characteristics, suggesting that leadership style and interpersonal interactions play a more influential role.
The results further reveal that both managers and employees recognize the importance of informal management control mechanisms, although they emphasize different aspects. Employees particularly value appreciation, whereas managers place greater emphasis on proactivity and open communication. Furthermore, informal management control mechanisms that foster autonomy and competence are positively associated with innovation performance. Psychological safety emerges as a key predictor of employee well-being, being positively related to job satisfaction and work engagement while negatively associated with burnout and workaholism.
This dissertation contributes to both theory and practice. Theoretically, it advances the understanding of informal management control mechanisms within SMEs and proposes psychological safety as an additional psychological need alongside autonomy, competence, and relatedness. Practically, the findings provide managers with actionable insights into how appreciation, autonomy, competence development, and the creation of a psychologically safe work environment can strengthen both innovation and employee well-being, thereby contributing to the sustainable performance of SMEs.