scholarly journals New wine in old bottles: governing logics for applying sustainability management control systems in Austrian electric utilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Johannes Slacik ◽  
Birgit Grüb ◽  
Dorothea Greiling
Keyword(s):  
Control Systems ◽  
Qualitative Content Analysis ◽  
Methodological Approach ◽  
Electric Utility ◽  
Management Control ◽  
Management Control Systems ◽  
Control Mechanisms ◽  
Sustainability Management ◽  
Content Type ◽  
Informal Controls

Purpose Literature shows that a strong link between sustainability control systems and sustainability management (SM) fosters sustainability development (SD) and compliance with regulatory requirements and stakeholder expectations. Research on the integration of SM and its control mechanisms in corporate business remains scarce. This study aims to focus on Sustainability Management Control Systems (S)MCS applied in Electric Utility Companies (EUC), which experience close scrutiny by its stakeholders in as much as they play an important role in climate change agendas. Design/methodology/approach The methodological approach includes in-depth expert interviews within seven Austrian EUC followed by qualitative content analysis. This study builds on “MCS as a package” by Malmi and Brown (2008). Institutional logics (IL) are used for the theoretical approach. Findings Results show that several IL are involved in implementing strategic SMCS in EUC. Managers cope by integrating emerging hybrid logics, selectively coupled SMCS and making sense by building a communication bridge between the strategic and operative levels to create awareness. Research limitations/implications Results show that managers in EUC have to acquire a new hybrid logic for SD. This implies the use of informal controls and a strong focus on administrative and cultural controls as the main control mechanisms for SM. Originality/value The paper contributes to MCS research by using the scarcely applied theoretical framework of IL. Findings facilitate a better understanding of the control mechanisms behind SM and the coping strategies of managers in applying SMCS.

scholarly journals Bridging management control systems and innovation

2019 ◽  
Vol 16 (3) ◽  
pp. 342-372 ◽  
Author(s):  
Rúben Silva Barros ◽  
Ana Maria Dias Simões da Costa Ferreira
Keyword(s):  
Control Systems ◽  
Methodological Approach ◽  
Management Control ◽  
Management Control Systems ◽  
Positive Role ◽  
Content Type ◽  
Fine Grained ◽  
Qualitative Approaches ◽  
Innovation Mode ◽  
Behavioural Aspects

Purpose The purpose of this study is to present the evolution of thinking on the role of management control systems (MCSs) in innovation, according to the development of control practices, and to provide a reflection on the achievements of the more recent literature. Design/methodology/approach This paper assesses articles, books and book chapters that have explored MCSs in innovation, together with seminal works on management accounting and control. Findings Moving from the traditional phase where MCSs were seen as detrimental to innovation, the literature has now reached a new consensus that attributes a positive role to control. In this recent phase, it arises from the literature that MCSs in the realm of innovation should embrace a multiplicity of controls; MCSs depend on the magnitude and innovation mode of a company; MCSs evolve over time; and that synergies and tensions are expected to arise. Adding these factors to the inherent complexity of innovation, the assertion is that qualitative approaches should be undertaken to infuse the field with more fine-grained evidence. It is also proposed that this methodological approach be used to address the following points: (1) the use of multiple controls; (2) synergies and tensions; and (3) behavioural aspects of controls in relation with innovation. Originality/value The paper is of value for researchers who have an interest in studying the use of MCSs in innovation and in qualitative research and proposes some areas of research that could be explored.

Sustainability management control systems in higher education institutions from measurement to management

2020 ◽  
Vol 21 (1) ◽  
pp. 144-160 ◽  
Author(s):  
Nicolas Roos ◽  
Edeltraud Guenther
Keyword(s):  
Higher Education ◽  
Environmental Management ◽  
Control Systems ◽  
Environmental Sustainability ◽  
Status Quo ◽  
Management Control ◽  
Management Control Systems ◽  
Sustainability Management ◽  
Content Type ◽  
The Status

Purpose As social institutions, higher education institutions (HEIs) play a key role in the distribution of knowledge and skills for sustainable development and societal structures. To fulfill this task, the institutionalization of sustainability within the organization’s structures is essential. The purpose of this paper is to provide an overview of the status quo of environmental management performance (EMP) in HEIs and conclusions for the application of management control systems. Design/methodology/approach Within a systematic literature review, 56 international publications were analyzed along a qualitative thematic content analysis. The coding followed the dimensions of EMP by Trumpp et al. Findings Structuring environmental sustainability efforts along the concept of EMP reveals a major weakness in environmental sustainability management of HEIs. Therefore, the study proposes a model for a processual integration of steering mechanisms for management bodies to systemize appropriate efforts to gain excellence in operations. Originality/value By applying the concept of EMP by Trumpp et al., this systematic review provides an overview of the status quo of environmental management performance at HEIs and proposes a model for the implementation of advanced top-down steering striving a whole institution approach.

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.

Paradoxical tensions of the COVID-19 pandemic: a paradox theory perspective on the role of management control systems in helping organizations survive crises

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ralph Kober ◽  
Paul J. Thambar
Keyword(s):  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Short Term ◽  
Content Type ◽  
Strategic Objectives ◽  
Paradox Theory ◽  
Practical Implications

PurposeThis paper presents paradox theory as a useful theoretical lens for researchers exploring crises such as coronavirus disease 2019 (COVID-19). The authors argue that paradox theory, which emphasizes a “both/and” as opposed to an “either/or” approach, is ideally suited for management control systems (MCS) research on crises.Design/methodology/approachThe authors adopt a revelatory case approach to provide empirical examples of the insights that paradox theory can provide.FindingsThis paper highlights how MCS can be used to simultaneously manage short-term/operational and long-term/strategic objectives to navigate a crisis. Furthermore, it highlights how MCS can be mobilized during crises to identify and embrace opportunities.Practical implicationsThis paper illustrates the importance of MCS focusing on not just the short-term, but also the long-term, and managing multiple objectives in assisting organizations to survive crisis.Originality/valueThis paper highlights the benefits of using paradox theory to understand the role of MCS in helping organizations manage crises and to use a crisis as a source of opportunity.

In the field of tension between creativity and efficiency: a systematic literature review of management control systems for innovation activities

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Philipp Lill ◽  
Andreas Wald ◽  
Jan Christoph Munck
Keyword(s):  
Systematic Review ◽  
Control Systems ◽  
Systems Design ◽  
Management Control ◽  
Management Control Systems ◽  
Future Research ◽  
Content Type ◽  
Innovation Activities ◽  
Body Of Knowledge ◽  
Control Systems Design

PurposeThe number of theoretical and empirical research on management control of innovation activities has significantly increased. Existing studies in this field are characterized by a wide dispersion and a multitude of different definitions. The purpose of this article is to provide a systematic review of the literature on management control of innovation activities and to synthesize the current body of knowledge.Design/methodology/approachFollowing a systematic review approach, this article reviews 79 articles on management control for innovation activities from 1959 to 2019 and inductively derives a multi-dimensional framework.FindingsThe review of existing studies advances the debate about the detrimental versus beneficial character of management control systems for innovation, showing that the repressing character of control is not inherent to control itself, but emanates from the design of the respective management control system.Research limitations/implicationsThe multi-dimensional framework connects and combines existing research and thus synthesizes the current state of knowledge in this field. Additionally, the framework can guide practitioners to systematically assess context factors and consequences of their management control systems design, and it shows avenues for future research.Originality/valueThe scientific and practical value of this paper is the convergence of the current body of knowledge consisting of various definitions and conceptualizations and the identification of avenues for future research.

Implementing CSR activities through management control systems

2019 ◽  
Vol 32 (2) ◽  
pp. 531-555 ◽  
Author(s):  
Lamia Laguir ◽  
Issam Laguir ◽  
Emmanuel Tchemeni
Keyword(s):  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Structured Interviews ◽  
Content Type ◽  
Global Standards ◽  
Strategic Csr ◽  
Multiple Case ◽  
Corporate Social ◽  
Cross Case Analysis

Purpose The purpose of this paper is to take into account Simons’ (1994) formal levers of control framework and more informal processes to examine how organizations implement and manage corporate social responsibility (CSR) activities through management control systems (MCSs). Design/methodology/approach A multiple-case study was conducted in ten large French organizations. Qualitative data were collected during in-depth semi-structured interviews with the managers who were best informed on CSR practices and MCSs. The authors then performed within-case and cross-case analysis. Findings The study shows that organizations use different MCSs to manage CSR activities directed toward their salient stakeholders – that is, employees, customers, suppliers and community. Specifically, the authors found that social MCSs are used to communicate CSR values, manage risk, evaluate CSR activities, and identify opportunities and threats. In addition, the use of MCSs to implement CSR activities is mainly driven by the need to satisfy salient stakeholder demands, manage legitimacy and reputation issues, and meet top management expectations and enhance their commitment. Last, the use of social MCSs is hindered by a lack of clear strategic CSR objectives and action plans, a lack of global standards and measurement processes for CSR, and a lack of time and financial resources. Originality/value The study addresses recent calls in the literature for research into the ways formal and informal control systems are used to implement CSR activities and provides insight that may stimulate further research.

How management control systems enable and constrain integrated thinking

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ruth Dimes ◽  
Charl de Villiers
Keyword(s):  
Decision Making ◽  
Control Systems ◽  
Economic Benefits ◽  
Management Control ◽  
Management Control Systems ◽  
Practical Implementation ◽  
Successful Implementation ◽  
Content Type ◽  
Perceived Trust

Purpose This paper aims to examine how management control systems (MCS) can enable and constrain the successful adoption of integrated thinking in an organisation. Design/methodology/approach The study adopts a case study approach, involving in-depth interviews and documentary evidence. Findings The case study organisation perceived trust to be critical to the successful adoption of integrated thinking, and informal social controls with strong endorsement from senior management frequently substituted for more formal technical controls in helping to develop a trust-based organisational culture. These cultural changes improved collaboration and brought economic benefits by encouraging outcome-based decision-making rather than capital-based decision-making, thereby enabling employees to identify and address poorly performing projects earlier. However, established performance measurement systems geared towards reporting and rewarding accounting profits created tension, constraining the potential benefits of integrated thinking by reinforcing business unit protectionism. Practical implications Integrated thinking can be seen as a form of management with the potential to improve organisational outcomes. An improved understanding of factors that might enable or constrain integrated thinking could facilitate its spread. Originality/value Despite several calls for research on the practical implementation of integrated thinking, this has not been studied extensively. To the best of the authors’ knowledge, this study is one of the firsts to contribute to a better understanding of the role of MCS in the successful implementation of integrated thinking in an organisation. The study also contributes to the MCS literature.

The institutionalization of management control systems in a family firm

2020 ◽  
Vol 17 (4) ◽  
pp. 649-673
Author(s):  
Marcelo S. Pagliarussi ◽  
Michel A. Leme
Keyword(s):  
Quality Control ◽  
Control Systems ◽  
Family Firms ◽  
Family Values ◽  
Management Control ◽  
Management Control Systems ◽  
Family Identity ◽  
Content Type ◽  
The Family ◽  
Control Management

Purpose This study aims to understand how family values, family managers and non-family managers influence the institutionalization of management control systems in family firms. Design/methodology/approach A case study was conducted in a family business group that underwent a process of adoption and transformation of its management control system. Findings The results indicate that several non-family managers, besides the controller, played crucial roles in harmonizing the logic of a generalized practice (quality control management) with the existing rationalities of the family firm. The authors also observed that the ISO 9001/quality control management logic together with the family values of professionalism, meritocracy and an emphasis on the business’s identity rather than the family identity have laid the groundwork for the formalization of the business group’s management controls. Practical implications This study shows that quality control management is an accessible source of guidance for the formalization of managerial activities within an organization. Originality/value This paper contributes to the literature by clarifying the role performed by non-family managers during the formalization of management control in family firms. It also shows how the family values of professionalism, meritocracy and an emphasis on the business’s identity rather than family identity can influence the way control is exercised within family firms.

Sustainability reporting integrated into management control systems

2015 ◽  
Vol 27 (2) ◽  
pp. 189-207 ◽  
Author(s):  
Jennifer Kerr ◽  
Paul Rouse ◽  
Charl de Villiers
Keyword(s):  
Control Systems ◽  
Balanced Scorecard ◽  
Sustainability Reporting ◽  
Management Control ◽  
Management Control Systems ◽  
Management Control System ◽  
Content Type ◽  
The Balanced Scorecard ◽  
External Reporting

Purpose – This paper aims to examine how three different organisations integrate sustainability reporting into management control systems (MCS). Design/methodology/approach – A case study examination of sustainability reporting integrated into MCS in three New Zealand organisations. Findings – The integration of sustainability reporting into MCS holds advantages for organisations to operationalise sustainability objectives, broaden stakeholder accountability as well as intensify interactions with stakeholders, formalise organisation beliefs and improve communication of sustainability measures internally. While frameworks such as the balanced scorecard (BSC) can facilitate implementation of sustainability reporting, some organisations may choose to fully integrate the latter into their management control system. Originality/value – Sustainability reporting is sometimes seen as an external reporting philosophy that can be managed as a separate project. The authors show it can be integrated into MCS, either entirely or through tools such as the BSC. The authors develop a framework that may be useful in future studies to locate our case organisations.

A visual and rhetorical perspective on management control systems

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carina Söderlund ◽  
Magnus Hansson
Keyword(s):  
Control Systems ◽  
Visual Communication ◽  
Information Design ◽  
Management Control ◽  
Management Control Systems ◽  
Shop Floor ◽  
Future Research ◽  
Content Type ◽  
And Function ◽  
Role And Function

Purpose The purpose of this paper is to explore the role and function of visuals, visual communication and information design as they relate to management control systems and visual management (VM) in lean-inspired organisations. This paper helps expand knowledge on how visual and design studies can contribute to research on VM as part of a management control system. Design/methodology/approach A study is outlined, which was conducted at a multinational manufacturing company to investigate employees’ perceptions and use of visual devices on the shop floor, including their related reactions and behaviour. The study is delimited to operation management, lean manufacturing and lean boards (i.e. daily management boards and performance measurement boards). Findings The findings point out the persuasive purpose of lean boards, as well as the metaphoric and persuasive functions of the visuals and information design in management control systems. Originality/value Visual research and design research are rare within studies of management control systems. There is a need to perform research that takes into account the role and function of visual communication and information design in VM. The proposed areas for future research can provide design principles, as well as insights into the complexity of visual communication and information design in VM and management control studies.

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