Powerful relativistic jets in radio galaxies are capable of driving strong outflows but also inducing star-formation by pressure-triggering collapse of dense clouds. We review theoretical work on negative and positive active galactic nuclei feedback, discussing insights gained from recent hydrodynamical simulations of jet-driven feedback on galaxy scales that are applicable to compact radio sources. The simulations show that the efficiency of feedback and the relative importance of negative and positive feedback depends strongly on interstellar medium properties, especially the column depth and spatial distribution of clouds. Negative feedback is most effective if clouds are distributed spherically and individual clouds have small column depths, while positive feedback is most effective if clouds are predominantly in a disc-like configuration.