scholarly journals The use of management control and performance measurement systems in SMEs

2018 ◽  
Vol 38 (11) ◽  
pp. 2169-2191 ◽  
Author(s):  
Biljana Pešalj ◽  
Andrey Pavlov ◽  
Pietro Micheli
Keyword(s):  
Performance Measurement ◽  
Performance Management ◽  
Control Systems ◽  
Management Practices ◽  
Single Case ◽  
Management Control ◽  
Theory And Practice ◽  
Content Type ◽  
And Performance

Purpose The purpose of this paper is to respond to recent calls for understanding how multiple management control (MC) and performance measurement (PM) systems are used simultaneously for managing performance, particularly in the context of small- and medium-sized enterprises (SMEs). Design/methodology/approach Data are collected during an in-depth case study of MC and PM and management practices in a Dutch SME using multiple data sources and elicitation methods, including interviews and participant observations. Findings This study identifies managerial practices that enable the interplay of the four control systems – beliefs, boundaries, diagnostic and interactive – helping the organization manage organizational tensions in relation to short- and long-term focus, predictable goal achievement and search for new opportunities, internal and external focus, and control and creativity. Research limitations/implications This paper advances the research on integrating multiple aspects of performance management, particularly technical and social. This research is based on a single case study; future qualitative and quantitative studies could explore the interplay between the four control systems in other settings and explore the relationship between control systems and leadership style. Practical implications Managing performance requires active and continuous use of all four control systems. This is particularly salient in SMEs where less formal controls play a key role and where balance needs to be ensured despite the lack of managerial processes and capabilities. Originality/value The findings advance PM and management theory and practice in the context of SMEs.

Digital technologies and the balance between control and empowerment in performance management

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eirik Bådsvik Hamre Korsen ◽  
Marte Daae-Qvale Holmemo ◽  
Jonas A. Ingvaldsen
Keyword(s):  
Performance Measurement ◽  
Performance Management ◽  
Management Practices ◽  
Single Case ◽  
Command And Control ◽  
Digital Technologies ◽  
Performance Measurement System ◽  
Content Type ◽  
And Control

Purpose This paper aims to explore how manufacturing organisations’ performance measurement and management (PMM) systems are evolving when digital technologies (DTs) are deployed. It focusses on the operational level, asking whether DTs are used to promote command-and-control or empowerment-oriented performance management. Design/methodology/approach The findings are based on a single case study from a department of a Norwegian electrochemical plant. The department recently implemented a performance measurement system (PMS) supported by DTs to capture, analyse and visualise close-to-real-time performance data on individuals and teams. The authors analysed both the management practices associated with the new PMS and how those related to other PMM-subsystems in the organisation. Findings When seen in isolation, the new PMS was used to promote empowerment and operators reported a significant increase in perceived psychological empowerment. However, other parts of the organisation’s PMM system remained control-oriented, so that the overall balance between control and empowerment remained stable. Practical implications New PMSs might be added to support local needs and create arenas for empowerment without disturbing the overall balance in the PMM system. Originality/value Building on the insights from the case study, the authors propose that DTs may be deployed to promote both command-and-control and empowerment within different PMM subsystems in the same organisation. Hence, the deployment of DTs is likely to have contradictory effects, which are best understood through a “system of systems” perspective on PMMs.

scholarly journals How performance measurement influences stakeholders in not-for-profit organizations

2017 ◽  
Vol 37 (9) ◽  
pp. 1164-1184 ◽  
Author(s):  
Haley Allison Beer ◽  
Pietro Micheli
Keyword(s):  
Performance Measurement ◽  
Single Case ◽  
Institutional Logics ◽  
Performance Goals ◽  
Content Type ◽  
For Profit ◽  
Not For Profit ◽  
And Performance ◽  
The Uk

Purpose The purpose of this paper is to examine the influences of performance measurement (PM) on not-for-profit (NFP) organizations’ stakeholders by studying how PM practices interact with understandings of legitimate performance goals. This study invokes institutional logics theory to explain interactions between PM and stakeholders. Design/methodology/approach An in-depth case study is conducted in a large NFP organization in the UK. Managers, employees, and external partners are interviewed and observed, and performance-related documents analyzed. Findings Both stakeholders and PM practices are found to have dominant institutional logics that portray certain goals as legitimate. PM practices can reinforce, reconcile, or inhibit stakeholders’ understandings and propensity to act toward goals, depending on the extent to which practices share the dominant logic of the stakeholders they interact with. Research limitations/implications A theoretical framework is proposed for how PM practices first interact with stakeholders at a cognitive level and second influence action. This research is based on a single case study, which limits generalizability of findings; however, results may be transferable to other environments where PM is aimed at balancing competing stakeholder objectives and organizational priorities. Practical implications PM affects the experience of stakeholders by interacting with their understanding of legitimate performance goals. PM systems should be designed and implemented on the basis of both their formal ability to represent organizational aims and objectives, and their influence on stakeholders. Originality/value Findings advance PM theory by offering an explanation for how PM influences attention and actions at an individual micro level.

scholarly journals Performance Management in Anti-Corruption Authorities Indonesian and Swedish Cases

INTEGRITAS ◽  
2018 ◽  
Vol 4 (2) ◽  
pp. 29
Author(s):  
Oryza Sativa ◽  
Christos Daskalakis
Keyword(s):  
Performance Measurement ◽  
Performance Management ◽  
Comparative Research ◽  
Qualitative Method ◽  
Management Control ◽  
Management Control System ◽  
Target Setting ◽  
Multiple Case ◽  
And Performance

This paper investigates how Anti-Corruption Authorities (ACA) make use of performance measurement in order to improve performance management. The research framework has been developed from Ferreira and Otley (2009). The authors used a qualitative method with multiple case study in order to perform comparative research. Indonesia’s Komisi Pemberantasan Korupsi and Swedish National Anti-Corruption Unit were chosen as the sample of the study. The research found that both of the authorities has a greatly different performance management system and performance measurement. It can be seen from the use of key performance indicators and its role in the management control system, as well as the target setting, performance evaluation, and rewards.

Digitalisation and the performance measurement and management system: reinforcing empowerment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eirik Bådsvik Hamre Korsen ◽  
Jonas A. Ingvaldsen
Keyword(s):  
Performance Measurement ◽  
Performance Management ◽  
Information And Communication Technologies ◽  
Continuous Improvement ◽  
Industry 4.0 ◽  
Management Practices ◽  
Middle Managers ◽  
Performance Measurement System ◽  
Content Type

PurposeThis study explores how information and communication technologies (ICT) can contribute to empowerment in an Industry 4.0 setting.Design/methodology/approachThe results are based on a case study of a Norwegian manufacturing organisation that has highly automated production and an integrated ICT platform. Data analysis was guided by the Smith and Bititci (2017) framework for performance measurement and management.FindingsWhen powered by advanced ICT, the performance measurement system matures. The design and development of the ICT platform also reinforce the organisation's existing performance management practices. Empowerment is strengthened when automated collection, analysis and reporting of performance data free up middle managers' time so that they, together with operators, can drive continuous improvement.Research limitations/implicationsThe findings are limited to a single case study and require further testing for transferability to other organisations. Future research should explore whether performance management practices are also reinforced by ICT in more command- and control-oriented organisations.Practical implicationsThe paper suggests an alternative strategy of Industry 4.0 transformation for organisations committed to empowerment. Such organisations should rely on in-house, iterative ICT development and build digital competence broadly.Originality/valueThis article contributes to the understanding of how performance measurement and management are interrelated and evolve in the context of Industry 4.0. To the best of the authors’ knowledge, highlighting the role of middle managers in empowering operators through continuous improvement is novel in the performance measurement and management literature.

scholarly journals Management Control Systems and Innovation: a levers of control analysis in an innovative company

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rúben Silva Barros ◽  
Ana Maria Dias Simões da Costa Ferreira
Keyword(s):  
Control Systems ◽  
Single Case ◽  
Management Control ◽  
Management Control Systems ◽  
Control Analysis ◽  
Content Type ◽  
Consistent Reinforcement ◽  
Innovative Company ◽  
Levers Of Control

Purpose Building on the growing body of research that has addressed management control systems and innovation, the purpose of this study is to assess the extent and nature of the use of controls in an innovative setting and how they work together unveiling the relationships and tensions amongst the Simons’ levers. Design/methodology/approach This study resorts to an in-depth and single case study in a company that has both a strong orientation to innovation and stable control practices in place. Evidence was collected from 32 interviews, visits to the company and internal documentation. Findings At the case company, it was possible to find the presence of controls according to all the levers of control. Likewise, joint effects of controls used according to interactive and beliefs approaches and diagnostic and boundary controls showed a consistent reinforcement that push the organization in a single direction. Signs of some countervailing reinforcement between these pairs were also detected, creating tensions. This in general shows that innovation can be weighed against the necessity of goal achievement taking place within fields in which the company can exploit the effort developed. Originality/value This study documents the collective use of controls in a context in which innovation is needed and how the combination of the levers of control with their inner workings and tensions allow the company to have a corporate environment of innovation that is friendly.

Supporting start-up business model design through system dynamics modelling

2017 ◽  
Vol 55 (1) ◽  
pp. 57-80 ◽  
Author(s):  
Federico Cosenz
Keyword(s):  
System Dynamics ◽  
Performance Management ◽  
Business Model ◽  
Business Strategy ◽  
Single Case ◽  
Content Type ◽  
Business Modelling ◽  
Start Up ◽  
And Performance

Purpose The purpose of this paper is to explore how system dynamics (SD) modelling can provide a methodological support to business model (BM) design with the intent to better communicate business strategy and manage performance. Design/methodology/approach After a literature review of the field and an analysis of the strengths and limitations of conventional BM frameworks, the paper illustrates and discusses an approach that combines such a framework with SD modelling. A single-case study design was selected to explore the implications and limitations of using this combined approach to business modelling. Findings The methodological support provided by SD to BM design may effectively improve business strategy communication and performance management through both the adoption of a systemic and flexible perspective able to identify and analyse the main cause-and-effect relationships between the key-elements of the business strategy, and the use of a simulation technique that contributes in understanding how a firm operates, and its prospective performance over time. Originality/value Growing interest for BMs appears in the recent strategic management literature with research highlighting strengths and shortcomings. However, few attempts have been produced to overcome such limitations, while the adoption of SD is relatively new in supporting BM design.

scholarly journals Practice coordination by principles: a contemporary MNC approach to coordinating global practices

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alexander Kristiansen ◽  
Roger Schweizer
Keyword(s):  
Multinational Corporations ◽  
Design Methodology ◽  
Qualitative Data ◽  
Management Practices ◽  
Single Case ◽  
High Tech ◽  
Content Type ◽  
And Performance ◽  
Practical Implications

Purpose In the mainstream international business literature on multinational corporations (MNCs), an authoritative central headquarter (HQ) that transfers standardised practices to its subsidiaries remains the norm. This study aims to explore how MNCs coordinate their management practices through principles. Design/methodology/approach The paper draws on empirical findings from a qualitative in-depth single case study based on evidence-rich qualitative data including observations from how a high-tech MNC headquartered in Sweden coordinates its development practices. Findings An alternative informal coordination approach (i.e. coordination by principles) is identified. Additionally, antecedents and implications of the approach are presented. Practical implications Coordination by Principles may facilitate the internalisation of practices and be a feasible compromise between context adaptation and traditional standardisation, particularly for MNCs with highly heterogeneous research and development operations. Originality/value This paper highlights the importance of acknowledging that firm practices often are based on management ideas that HQs adopt to prevent loss of legitimacy. As such, this study contributes to the scarce literature that critically questions the assumption that HQs solely transfer practices to subsidiaries to improve subsidiary efficiency and performance.

scholarly journals Managerial choices in orchestrating dialogic performance management

2019 ◽  
Vol 14 (1) ◽  
pp. 141-157 ◽  
Author(s):  
Tomi Rajala ◽  
Harri Laihonen
Keyword(s):  
Performance Management ◽  
Narrative Analysis ◽  
Management Practices ◽  
Research Strategy ◽  
Content Type ◽  
Public Managers ◽  
Multiple Data ◽  
Dialogic Performance ◽  
And Performance

Purpose The purpose of this paper is to propose a definition for dialogic performance management and investigate the managerial choices that dialogic performance management necessitates from public managers. Design/methodology/approach The research strategy was based on a narrative analysis grounded in relativism and constructivism. Multiple data collection methods were used in this case study to examine a local government in Finland. Findings The paper proposes a definition and provides practical illustrations of the concept of dialogic performance management. The empirical findings are a set of managerial choices used to orchestrate dialogic performance management. Practical implications The concept of dialogic performance management encourages practitioners to ask themselves whether their current performance management practices are based on managerial monologues, rather than dialogues that incorporate staff into the performance management. The results also show that managerial choices shape the form of dialogic performance management. Originality/value The previous accounting and performance management literature has not examined the managerial choices that are used to shape dialogic performance management. In this research, the authors identify these types of managerial choices in the case organisation. The research is valuable because only after explicating managerial choices can one start to examine why dialogic performance management either fails or succeeds when public managers orchestrate it.

scholarly journals Comprehensive performance measurement and management – innovativeness and performance through reflective practice

2017 ◽  
Vol 13 (3) ◽  
pp. 425-448 ◽  
Author(s):  
Juhani Ukko ◽  
Sanna Hildén ◽  
Minna Saunila ◽  
Kati Tikkamäki
Keyword(s):  
Performance Measurement ◽  
Reflective Practice ◽  
Performance Management ◽  
Theory And Practice ◽  
Organizational Practice ◽  
Content Type ◽  
Measurement Systems ◽  
Performance Measurement Systems ◽  
And Performance

Purpose The purpose of the study is to investigate how organizations can exploit performance management through reflective practice to foster innovativeness and performance. Design/methodology/approach A conceptual framework has been designed to link the studied concepts and to explicitly indicate current research gaps in the area. Moreover, the authors have conducted interventionist case studies to understand the interconnections between theory and practice. Findings This study showed that there are many possibilities with which to exploit performance management through reflective practice to foster innovativeness and performance. The study has three main implications. First, reflective practice can be learned and developed. Second, reflective practice is connected to innovativeness and performance. Third, performance management through performance measurement systems can assist in targeting the reflective practice. Originality/value New forms of performance measurement and management are receiving increasingly amount of attention, because the traditional forms of managing organizations do not fulfill the needs of rapidly changing environment. Prior studies maintain that a performance measurement and management supports the periodic execution of the same routines in organizations where changes are small or non-existent. In these forms, the role of reflection as an individual, collective or organizational practice is emphasized.

Using action research in innovation project management: building legitimacy and organizational learning in an SME during a merger process

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Constance Elizabeth Kampf ◽  
Charlotte J. Brandt ◽  
Christopher G. Kampf
Keyword(s):  
Project Management ◽  
Organizational Learning ◽  
Action Research ◽  
Management Practices ◽  
Innovation Process ◽  
Theory And Practice ◽  
Organizational Level ◽  
Content Type ◽  
Innovation Project

PurposeThe purpose is to explore how the process of action research (AR) can support building legitimacy and organizational learning in innovation project management and portfolio practices in merger contexts.Design/methodology/approachMeta-reflection on method issues in Action Research through an action research case study with an innovation group during an organizational change process. This case demonstrates an example of an action research cycle focused on building practitioner legitimacy rather than problem-solving.FindingsKey findings include (1) demonstrating how AR can be used for building legitimacy through visualizing the innovation process, and embedding those visuals in top management practices of the organization; and (2) demonstrating how AR can work as an organizational learning tool in merger contexts.Research limitations/implicationsThis study focuses on an action research cooperation during a two-and-a-half-year period. Thus, findings offer the depth of a medium term case study. The processes of building legitimacy represent this particular case, and can be investigated in other organizational contexts to see the extent to which these issues can be generalized.Practical implicationsFor researchers, this paper offers an additional type of AR cycle to consider in their research design which can be seen as demonstrating a form of interplay between practitioner action and organizational level legitimacy. For practitioners, this paper demonstrates a connection between legitimacy and organizational learning in innovation contexts. The discussion of how visuals were co-created and used for building legitimacy for an innovation process that differs from the standard stage gate model demonstrates how engaging in AR research can contribute to developing visuals as resources for building legitimacy and organizational learning based on connections between theory and practice.Originality/valueThis case rethinks AR practice for innovation project management contexts to include legitimacy and organizational learning. This focus on legitimacy building from organizational learning and knowledge conversion contributes to our understanding of the soft side of innovation project management. Legitimacy is demonstrated to be a key concern for innovation project management practices.

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