The effects of strategic choices and sustainability control systems in the emergence of organizational capabilities for sustainability

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Karola Bastini ◽  
Fares Getzin ◽  
Maik Lachmann
Keyword(s):  
Control Systems ◽  
Design Methodology ◽  
Corporate Sustainability ◽  
Organizational Capabilities ◽  
Strategic Choices ◽  
Content Type ◽  
Sustainability Strategies ◽  
Sustainability Strategy ◽  
Organizational Determinants ◽  
Levers Of Control

PurposeThis study explores the relations among corporate sustainability strategies, the intense use of sustainability control systems (SCSs) to implement these strategies and the emergence of organizational capabilities for sustainability.Design/methodology/approachUsing survey data from a sample of 157 European firms across different industries, the authors explore differences between reactive and proactive sustainability strategies in their impact on the intense use of SCSs. The authors analyze the joint impact of a proactive sustainability strategy and an intense use of SCSs on the emergence of the organizational capabilities of sustainable market orientation, sustainable organizational learning and sustainable innovation. Furthermore, we explore the relevance of single levers of control for these capabilities.FindingsThe results show that a proactive sustainability strategy is associated with an intense use of SCSs and with the development of the three organizational capabilities. The authors provide evidence that the intensity of use of SCSs mediates the association between proactive sustainability strategy and the emergence of the three organizational capabilities. An interactive use of controls is constantly more important than a diagnostic use of controls in the emergence of the three capabilities.Originality/valueThe findings provide novel empirical evidence on the mechanisms through which corporate sustainability strategy is implemented in European organizations. The results contribute to an improved understanding of the organizational determinants underlying the development of organizational capabilities for sustainability.

Achieving more with less: Henkel’s Factor 3 strategy

2016 ◽  
Vol 37 (3) ◽  
pp. 3-11
Author(s):  
Van Patterson ◽  
Joe Knott ◽  
Rob Melnick
Keyword(s):  
Corporate Sustainability ◽  
Third Party ◽  
Original Research ◽  
Content Type ◽  
Supply Chain Strategy ◽  
Face To Face ◽  
Sustainability Strategies ◽  
Sustainability Strategy ◽  
Education Industry ◽  
Global Companies

Purpose This paper aims to provide an inside view and analysis of corporate eco-efficiency/sustainability strategy resulting in recommendations for the consumer goods industry. Design/methodology/approach The paper is framed by a literature review and case studies of corporate sustainability strategies. Original research was conducted via in-depth, face-to-face interviews (26) of Henkel senior management familiar with the company’s “Factor 3” strategy. Findings This research identifies certain challenges to corporate sustainability strategy including consumer use of products and how best to measure ecological and social footprints. It shows that many managers find the Factor 3 strategy to be clear and understandable but with challenging goals and metrics; managers and executives are optimistic about success and feel Factor 3 gives Henkel a competitive edge. This paper uncovers areas of in the strategy that need improvement including consumer education, industry partnering, accountability and supply chain strategy, and also finds that the Factor 3 affects employees on a personal level, changing behavior and evoking positive responses. Originality/value While there is considerable literature on corporate eco-efficiency sustainability strategies, there has not been sufficient critical third-party analysis of how these strategies are progressing, the challenges they face and what their trajectory is. Because strategies like Henkel’s Factor 3 represent an increasingly popular corporate vision and set of articulated goals, researchers and practitioners need a deeper understanding of how large, global companies are tackling sustainability and how successful these strategies have been.

Key corporate sustainability drivers: engaged boards and partnerships

2015 ◽  
Vol 43 (3) ◽  
pp. 44-48 ◽  
Author(s):  
Gayle C. Avery
Keyword(s):  
Best Practice ◽  
Success Factors ◽  
Corporate Sustainability ◽  
Senior Executives ◽  
Business Managers ◽  
Content Type ◽  
Current State ◽  
Sustainability Strategies ◽  
Sustainability Strategy ◽  
Sustainability Initiatives

Purpose – This article reports on a whitepaper showing the key success factors involved in driving corporate sustainability, and illustrates them using mini-case studies. Design/methodology/approach – Results from a 2015 whitepaper published by Boston Consulting Group and MIT Sloan Management Review in association with the United Nations Global Compact are discussed. The findings are based on interviews conducted globally with 2,587 business managers, experts and practitioners. Best practice examples are provided of what three leading corporations are doing to achieve their sustainability strategies. Findings – Two key drivers of corporate sustainability emerged. First, successful corporate sustainability involves collaborations with a range of other organizations. Essentially, the more partners in a particular project, the more successful the initiative is judged to be. Second, boards drive successful corporate sustainability where directors are interested in setting the sustainability strategy, its implementation and the outcomes. Research limitations/implications – The findings open many research questions and hypotheses to sustainability researchers and academics. Practical implications – Guidance is provided for senior executives seeking to improve and/or increase corporate sustainability initiatives, namely, to collaborate with other parties and engage the board. Social implications – The planet and its inhabitants will benefit if obstacles to successfully tackling wicked problems such as hunger, poverty and the effects of climate change can be reduced using the power of collaborations between business, government, NGOs, and academe. Originality/value – This paper provides insight into the perceived current state, obstacles and drivers of corporate sustainability, along with examples of successful approaches.

Take-off control and characteristics of FanWing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lin Meng ◽  
Yang Gao ◽  
Yangyang Liu ◽  
Shengfang Lu
Keyword(s):  
Control System ◽  
Control Systems ◽  
Design Methodology ◽  
Control System Design ◽  
Control Methods ◽  
Force Analysis ◽  
Close Attention ◽  
Content Type ◽  
Vehicle Load ◽  
Practical Implications

Purpose As a short take-off and landing aircraft, FanWing has the capability of being driven under power a short distance from a parking space to the take-off area. The purpose of this paper is to design the take-off control system of FanWing and study the factors that influence the short take-off performance under control. Design/methodology/approach The force analysis of FanWing is studied in the take-off phase. Two take-off control methods are researched, and several factors that influence the short take-off performance are studied under control. Findings The elevator and fan wing control systems are designed. Although the vehicle load increases under the fan wing control, the fan wing control is not a recommended practice in the take-off phase for its sensitivity to the pitch angle command. The additional pitch-down moment has a significant influence on the control system and the short take-off performance that the barycenter variation of FanWing should be considered carefully. Practical implications The presented efforts provide a reference for the location of the center of gravity in designing FanWing. The traditional elevator control is more recommended than the fan wing control in the take-off phase. Originality/value This paper offers a valuable reference on the control system design of FanWing. It also proves that there is an additional pith-down moment that needs to be paid close attention to. Four factors that influence the short take-off performance are compared under control.

Synthesizing management control frameworks

2010 ◽  
Vol 14 (1) ◽  
pp. 96-108 ◽  
Author(s):  
Winnie O'Grady ◽  
Paul Rouse ◽  
Cathy Gunn
Keyword(s):  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Content Type ◽  
Control Framework ◽  
Explicit Consideration ◽  
Multiple Levels ◽  
Viable System ◽  
Levers Of Control ◽  
Practical Implications

PurposeThe purpose of this paper is to investigate the holistic nature of control systems to understand how they operate across organizational levels and manage change.Design/methodology/approachThis paper takes an analytical approach using the viable system model (VSM) to assess the two main frameworks of control reported in the accounting literature.FindingsThe VSM provides an elegant framework for management control systems with explicit consideration of: multiple levels of control, communication channels, interactions with the environment, and the mechanisms for attaining balance between stability and change.Practical implicationsThe evaluation of current management control systems produces specific suggestions for improving the levers of control frameworkOriginality/valueThe VSM has not previously been aligned with management control frameworks.

Blinded by the light? Analyzing sustainability authenticity, customer service perceptions, and halo effects

2019 ◽  
Vol 30 (1) ◽  
pp. 117-139 ◽  
Author(s):  
Clinton Amos ◽  
Sebastian Brockhaus ◽  
Amydee M. Fawcett ◽  
Stanley E. Fawcett ◽  
A. Michael Knemeyer
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Design Methodology ◽  
Corporate Sustainability ◽  
A Priori ◽  
Decision Makers ◽  
Behavioral Experiments ◽  
Content Type ◽  
Sustainability Initiatives ◽  
Practical Implications

PurposeThe purpose of this paper is to evaluate how service perceptions influence customer views of the authenticity of corporate sustainability claims. The goal of this paper is to help supply chain decision-makers better understand boundary conditions in order to design more enduring and impactful sustainability programs.Design/methodology/approachThe authors employ behavioral experiments, subjecting two theoretically derived hypotheses to verification across five diverse industries and two distinct sustainability vignettes.FindingsCustomer service perceptions emerge as a significant boundary condition to the perceived authenticity of sustainability efforts. Subjects attributed significantly higher authenticity toward sustainability efforts in above average vs below average service quality contexts. Further, respondents attributed deceptive motivations to sustainability efforts at companies with below average service.Research limitations/implicationsThe authors confirm the underlying tenet of social judgment theory, which suggests thata prioriperceptions create a zone of acceptability or rejection. Ultimately, investing in sustainability can lead to counterproductive cynicism.Practical implicationsThe authors infer that customers’ willingness to give companies credit for sustainability initiatives extends beyond service issues to any practice that influencesa prioriperceptions. Supply chain managers must rethink their role in designing both customer service and sustainability systems to achieve positive returns from sustainability investments.Originality/valueThe authors challenge the assumption that customers universally positively view sustainability efforts. If customers holda priorinegative service perceptions, otherwise well-designed sustainability programs may invoke cynical reactions. Thus, sustainability programs may not inoculate firm reputations from adverse incidents. Given they touch both service and sustainability systems, supply chain managers are positioned to holistically influence their design for competitive advantage.

Sustainability strategy of Indonesian and Malaysian palm oil industry: a qualitative analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ratna Wardhani ◽  
Yan Rahadian
Keyword(s):  
Palm Oil ◽  
Stakeholder Engagement ◽  
Business Models ◽  
Oil Industry ◽  
Social Strategies ◽  
Content Type ◽  
Oil Companies ◽  
Sustainability Strategies ◽  
Sustainability Strategy ◽  
Study Results

Purpose Global palm oil production is growing rapidly, especially in Southeast Asia, with Indonesia and Malaysia as the biggest producers. Despite significant contributions to these countries’ economies, environmental and social aspects continue to be debated within this industry. The sustainability strategy is very important for the palm oil industry. This study aims to explore the sustainability strategy using six elements, namely, stakeholder engagement, governance and leadership, sustainability view and the economic, environmental and social strategies of Indonesian and Malaysian palm oil companies. Design/methodology/approach This study observes 21 Indonesian palm oil companies and 44 Malaysian palm oil companies from 2014 to 2018 with a total observation of 280 firm years. The methodology used in this study is a qualitative content analysis of six themes based on the sustainability strategy elements, which was further developed into 40 indicators. Content analysis is carried out on information published in annual reports and sustainability reports. Findings The study results indicate that stakeholder engagement, governance and leadership and strategic view of the palm oil companies in Indonesia and Malaysia are still likely to be weak. Palm oil companies have not demonstrated their focus on implementing economic, environmental and social strategies. Although the results indicate that there is a greater emphasis on environmental and social strategies than on economic issues, attention to both issues is still very low. Practical implications Palm oil companies need to integrate sustainability strategies in their business models and communicate them well to stakeholders to increase their competitive advantage in the palm oil industry. The government also needs to issue stricter rules and incentives to encourage companies to implement sustainability strategies. Social implications The study results provide implications for the communities around palm oil plantations to provide better social control so that companies can implement sustainability strategies in their business processes. Originality/value This study highlights the importance of sustainability practices integrated into palm oil companies’ business models, which have not been well implemented in the palm oil industry in the world’s largest producing countries.

Effects of ethical leadership and formal control systems on employee opportunistic behavior in China

2018 ◽  
Vol 25 (5) ◽  
pp. 1350-1362 ◽  
Author(s):  
Changsuk Ko ◽  
Mark H. Haney ◽  
Gukseong Lee
Keyword(s):  
Regression Analysis ◽  
Control Systems ◽  
Ethical Leadership ◽  
Interaction Effect ◽  
Design Methodology ◽  
Opportunistic Behavior ◽  
Direct Effects ◽  
Content Type ◽  
Formal Control ◽  
The Relationship

PurposeThe purpose of this paper is to explore how ethical leadership and formal control systems influence employee opportunistic behavior.Design/methodology/approachUsing survey data collected from Chinese employees (N=430), the authors conducted regression analysis to test hypothesized relationships between ethical leadership and formal control systems and employee opportunistic behavior. Both direct effects and an interaction effect were tested.FindingsThe authors found that both ethical leadership and formal control systems individually play significant roles in reducing employee opportunistic behavior. In addition, the results indicate that ethical leadership and formal control systems function as complements to jointly constrain employee opportunistic behaviors.Originality/valueThis study contributes to an understanding of the relationship between supervisors and followers in China by demonstrating the effects of ethical leadership and formal control systems on employee opportunistic behaviors, including an interesting interaction effect.

Observed effectiveness of the COSO 2013 framework

2019 ◽  
Vol 16 (1) ◽  
pp. 31-45
Author(s):  
Ifeoma Udeh
Keyword(s):  
Control Systems ◽  
Internal Control ◽  
Design Methodology ◽  
Control Process ◽  
Regression Analyses ◽  
Section 404 ◽  
Content Type ◽  
Sarbanes Oxley ◽  
Material Weaknesses ◽  
Practical Implications

Purpose This paper aims to examine the effectiveness of the Committee of Sponsoring Organization’s 2013 Framework, by investigating how the number of auditor-reported material weaknesses compares for Early-, Timely- and Late-adopters of the framework, and how the number of auditor-reported material weaknesses changed for Early- and Timely-adopters following their adoption of the framework. Design/methodology/approach The paper uses regression analyses based on a sample of US firms subject to Sarbanes-Oxley Act Section 404(b). Findings Timely-adopters of the 2013 Framework continued to exhibit fewer instances of auditor-reported material weaknesses than Late-adopters, even though they had a marginal increase in the number of auditor-reported material weaknesses, in the post-2013 Framework period. Practical implications The findings suggest that the effectiveness of the 2013 Framework may lie in the iterative nature of the internal control process, and as firms remedy deficiencies they or their auditors identify, they will continuously improve the effectiveness of their internal control systems. Originality/value Unlike existing literature, this paper uses data from the pre-2013 Framework, transition and post-2013 Framework periods to examine changes in the number of auditor-reported material weaknesses, thus differentiating between Early-, Timely- and Late-adopters of the 2013 Framework. It also shows the effect of adopting the 2013 Framework on the number of auditor-reported material weaknesses.

Controls amid the chaos

2017 ◽  
Vol 33 (4) ◽  
pp. 13-15
Keyword(s):  
Control Systems ◽  
Design Methodology ◽  
Reading Time ◽  
Management Control ◽  
Management Control Systems ◽  
Content Type ◽  
Digital Revolution ◽  
Time Dynamics ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Evolving industries, the digital revolution and the effect of the global economic crisis has entailed huge challenges for those seeking to implement management control systems. In her article “Organizations with changing structures: how to control?” (2016), author Eva Lechner pulls aside the curtains on a festival organizer and shows that while its time dynamics and culture are very different to most industries, the need for controls still apply, and they can be successfully applied as long as keen attention is paid to their consequences. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

What is project alliance capability?

2017 ◽  
Vol 10 (2) ◽  
pp. 404-422 ◽  
Author(s):  
Anna-Maija Hietajärvi ◽  
Kirsi Aaltonen ◽  
Harri Haapasalo
Keyword(s):  
Best Practices ◽  
Empirical Evidence ◽  
Empirical Research ◽  
Design Methodology ◽  
Organizational Capabilities ◽  
Project Delivery ◽  
Research Approach ◽  
Content Type ◽  
Complex Projects ◽  
Practical Implications

Purpose Project alliancing – a project delivery model used in delivering complex projects – demands new organizational capabilities for successful project implementation. The purpose of this paper is to define the concept of project alliance (PA) capability and to identify the elements that constitute an organization’s PA capability. Design/methodology/approach This study provides empirical evidence of PA capability based on an investigation of participants’ experiences of Finnish construction and infrastructure alliance projects. The adopted research approach is qualitative and inductive. Findings The paper conceptualizes PA capability and defines the elements that constitute an organization’s PA capability, including important activities in the pre-formation, development and post-formation phases of PAs and the contractual, behavioral, relational, and operational skills that organizations need for successful alliance project initiation and implementation. Practical implications The identified alliance project activities are targets for routinization and best practices that organizations can deploy from one project to another. The identified skills indicate areas in which organizations should build and develop expertise. Originality/value There is limited empirical research on the elements defining an organization’s capability to bid, manage and operate in alliance projects. This study presents some preliminary thoughts to augment knowledge of the successful initiation and management of alliance projects and to suggest why some organizations may be more successful than others in alliance projects.

Sign in / Sign up

Export Citation Format

Share Document