The role of sustainability control systems in translating CSR into performance in Iran

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kaveh Asiaei ◽  
Nick Bontis ◽  
Omid Barani ◽  
Majid Moghaddam ◽  
Jasvinder Sidhu
Keyword(s):  
Organizational Performance ◽  
Control Systems ◽  
Natural Resource ◽  
Agency Cost ◽  
Management Control ◽  
Superior Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Resource Orchestration

PurposeThis study aims to explore the extent to which companies rely on sustainability management control systems (SMCS) to translate corporate social responsibility (CSR) into superior performance building upon the premise of the natural resource orchestration perspective.Design/methodology/approachData were collected based on a survey data set from 118 Chief Financial Officers of publicly listed companies in Iran. The theoretical model was tested using partial least squares structural equation modeling (PLS-SEM, SmartPLS 3.0) as a method that enjoys minimum demands concerning normality assumptions and sample size.FindingsThe findings support the full mediation effect of SMCS on the relationship between CSR and organizational performance. This implies that CSR affects performance only through the mediating role of SMCS.Practical implicationsThe central premise in the proposed theoretical framework is that the utilization of proper management control mechanisms (i.e. SMCS) can help the organization to better synchronize, measure and manage – i.e. “orchestrate” – the social, environmental and economic impacts, and this, in turn, leads to improved organizational performance.Originality/valueTo the best of the authors’ knowledge, this is the first study of its kind, building on a unique synthesis of the agency cost perspective and resource orchestration theory, to introduce the “natural resource orchestration” approach for examining the intervening role of SMCS between CSR and organizational performance.

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.

The role of environmental management control systems for ecological sustainability and sustainable performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shafique Ur Rehman ◽  
Anam Bhatti ◽  
Sascha Kraus ◽  
João J. M. Ferreira
Keyword(s):  
Environmental Management ◽  
Management Control ◽  
Organizational Capabilities ◽  
Equation Modeling ◽  
Ecological Sustainability ◽  
Content Type ◽  
Sustainable Performance ◽  
Construction Organizations ◽  
Environmental Strategies

PurposeThe purpose of this study determines how environmental management control system (MCS) packages influence ecological sustainability and sustainable performance through the mediating role of environmental strategies. Furthermore, this applies organizational capabilities as moderating variables between environmental strategies, ecological sustainability and sustainable performance in a sample of 373 construction firms.Design/methodology/approachThe authors apply quantitative questionnaire data from construction firm representatives (from project, sales and construction managers and contract managers, executive directors and engineers) to structural equation modeling and SmartPLS for our analysis.FindingsThe results demonstrate that recourse to environmental MCS packages significantly influence ecological sustainability, sustainable performance and environmental strategies. Additionally, environmental strategies and organizational capabilities significantly influence ecological sustainability and sustainable performance. Moreover, environmental strategies mediate between environmental MCS packages, ecological sustainability and sustainable performance. Organizational capabilities significantly moderate the relationship between ecological sustainability and sustainable performance.Practical implicationsThis research highlights the issue of how the management of construction organizations deploy environmental MCS packages, organizational capabilities and business strategies to measure ecological sustainability and improve their sustainable performance. This study fills a gap in the literature and facilitates the management of construction organizations in strengthening their internal resources in terms of environmental MCS packages, environmental strategies and organizational capabilities able to help improve their ecological sustainability and sustainable performance.Originality/valueThere are few studies building theoretical frameworks for incorporating environmental MCS packages, organizational capabilities, environmental strategies, ecological sustainability and sustainable performance into a single study. Although the influence of various types of intangible resources on ecological sustainability and sustainable performance receive considerable examination in the literature, there is a dearth of attention paid to understanding the role of environmental MCS packages, environmental strategies and organizational capabilities in determining the ecological sustainability and sustainable performance of construction organizations.

scholarly journals People in suits: a case study of empowerment and control in a non-profit UK organisation

2020 ◽  
Vol 32 (3) ◽  
pp. 511-528
Author(s):  
Roxana Corduneanu ◽  
Laura Lebec
Keyword(s):  
Control Systems ◽  
Management Control ◽  
Interactive Systems ◽  
Employee Perceptions ◽  
Structured Interviews ◽  
Content Type ◽  
Non Profit ◽  
And Control

PurposeDrawing on Simons's levers of control (LoC) framework, the primary aim of this study is to advance an understanding of the balance between empowerment and constraint in a non-profit UK organisation. In particular, this study examines the antecedents and manifestations of LoC (im)balance, in relation to employees' level of engagement with the control systems in place.Design/methodology/approachFor this study, 27 semi-structured interviews were conducted with different organisational members, from directors to non-managerial staff, to gain an in-depth appreciation of the main differences between managerial intentions in the design of management control systems (MCS) and employee perceptions regarding the role of such systems.FindingsThis research reveals that suppression of interactive systems and internal inconsistencies between different types of controls hinder the balance between empowerment and constraint. This imbalance is then found to have important consequences for employee buy-in, in some cases, defeating the purposes of control.Research limitations/implicationsThis study enhances our understanding of the gap between the design of control systems and the employee perceptions of it in an unusual organisational setting (non-profit and bringing together clinical and non-clinical staff and operations).Originality/valueThe study of MCS and its role in organisations has long been the focus of both academic and practitioner research. Yet, while extant literature focused on management's perspective on MCS, few studies have explored employees' attitudes and behaviours that accompany the implementation of control. What is more, little is known about the specific uses and behavioural outcomes of MCS in the context of non-profit organisations. Drawing on Simons's LoC framework, this paper addresses these gaps in the literature and investigates the balance between control and empowerment of employees in a UK non-profit organisation with significant clinical remit.

scholarly journals Are altruistic leaders worthy? The role of organizational learning capability

2015 ◽  
Vol 36 (3) ◽  
pp. 271-295 ◽  
Author(s):  
Fermín Mallén ◽  
Ricardo Chiva ◽  
Joaquín Alegre ◽  
Jacob Guinot
Keyword(s):  
Organizational Learning ◽  
Organizational Performance ◽  
Structural Equation ◽  
Equation Modeling ◽  
Future Research ◽  
Leader Behaviors ◽  
Learning Capability ◽  
Content Type ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the relationship between altruistic leader behaviors, organizational learning capability and organizational performance. Design/methodology/approach – The sampling frame consists of several databases or listings of business that consider people as a key element of the organization and are considered by their employees to be good firms to work for or organizational environments where human resources management has high priority (n=251). The authors use structural equation modeling to test if the relationship between altruistic leader behaviors and organizational performance is mediated by organizational learning capability. Findings – Results suggest that organizational learning capability fully mediates between altruistic leader behaviors and organizational performance. Thus, organizational learning capability plays a key role in explaining how altruistic leader behaviors affect organizational performance, essentially because it facilitates the creation of a creative, participatory and dialogue-based environment that promotes organizational learning. Research limitations/implications – The database used in the study is very heterogeneous. Future research might delimit the database by organization size or sector. Qualitative studies may also improve our understanding of the relationships studied and enable other concepts to be included. Practical implications – This study provides evidence of the positive relationship between altruistic leaders and performance. However, recruiting and fomenting altruistic leaders is not sufficient on its own to improve performance, and should be accompanied by implementing other facilitating factors of organizational learning such as dialogue or experimentation. Originality/value – In recent years some studies have linked leadership with organizational learning. However, this is one of the first studies to concentrate on altruistic leader behaviors as such, a concept that has received scant mention in the literature despite its importance in a number of leadership styles, and its relevance today as an alternative to the egotistic leader. The authors offer empirical evidence of the role of altruistic leader behavior as an antecedent of organizational learning capability and subjective measures of performance.

scholarly journals Role of Management Control Systems in Quality, Innovation and Organizational Performance in Portugal SMES Companies

2018 ◽  
Vol 15 (02) ◽  
pp. 1850014 ◽  
Author(s):  
Marina Godinho Antunes ◽  
Joaquín Texeira Quirós ◽  
Maria do Rosáirio Texeira Fernandes Justino
Keyword(s):  
Organizational Performance ◽  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Financial Indicators ◽  
Total Quality ◽  
Online Questionnaire ◽  
Multivariate Statistical ◽  
Innovation Strategies

The purpose of this research is to analyze the relationship between management control systems, total quality management (TQM) and innovation, and also the effects of management control systems in the organizational performance. The research was developed based on a conceptual model designed to analyze these dimensions. The data were obtained through an online questionnaire, sent to small and medium-sized Portuguese companies, having been conducted the study based on responses received from 287 valid questionnaires, and using a multivariate statistical analysis for the statistical development. The findings indicate that non-financial indicators provide innovation strategies of products and processes. However, the financial indicators only provide the innovation strategies of processes. It is also verified that only non-financial indicators provide equally the implementation of TQM practices. The results also show that financial indicators only provide an improvement in the financial results of the organization, while the non-financial indicators also improve its operational performance.

scholarly journals Integrating environmental management control systems to translate environmental strategy into managerial performance

2019 ◽  
Vol 15 (4) ◽  
pp. 626-653 ◽  
Author(s):  
Peter G. Rötzel ◽  
Alexander Stehle ◽  
Burkhard Pedell ◽  
Katrin Hummel
Keyword(s):  
Environmental Management ◽  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Organizational Level ◽  
Environmental Strategy ◽  
Managerial Performance ◽  
Content Type ◽  
The Relationship

Purpose This study aims to investigate the role of environmental management control systems as mechanisms to translate environmental strategy into environmental managerial performance. Design/methodology/approach Based on survey data from 218 firms, the authors test a structural equation model. Findings The results show that environmental management control systems mediate the relationship between environmental strategy and environmental managerial performance. Moreover, the level of integration between regular and environmental management control systems significantly impacts the relationship between environmental management control systems and environmental managerial performance. Therefore, environmental management control systems are important mechanisms to translate environmental strategy into managerial performance, and a high level of integration can reinforce this role. Research limitations/implications The typical shortcomings of survey-based research apply to this study. Originality/value While previous research focuses primarily on environmental performance at the organizational level, this study addresses individual managerial performance with regard to environmental outcomes. In addition, the authors investigate how the level of integration between regular and environmental management control systems influences the relationship between environmental strategy and environmental managerial performance as well as the mediating role of environmental management control systems.

The role of management control systems in situations of institutional complexity

2015 ◽  
Vol 12 (4) ◽  
pp. 395-424 ◽  
Author(s):  
Utz Schäffer ◽  
Erik Strauss ◽  
Christina Zecher
Keyword(s):  
Control Systems ◽  
Radical Change ◽  
Institutional Logics ◽  
Management Control ◽  
Management Control Systems ◽  
Institutional Complexity ◽  
Content Type ◽  
Ex Post ◽  
Structural Responses

Purpose – This study investigates in depth how decision-making of different organisational members is shaped by various management control systems (MCSs) that reflect different institutional logics, how the entire organisation deals with the arising institutional complexity and which role different management controls as a system play in such situations. Design/methodology/approach – A case study was conducted on a German Mittelstand firm whose MCSs were shaped by three different logics over time: a family logic, a stakeholder logic and a shareholder logic. Findings – This paper shows how different actors of an organisation confronted with institutional complexity used selective coupling of different MCS components and compartmentalizing MCS components to deal with clashing institutional logics. Thereby, it was possible for the actors to balance different sub-communities within the firm that were shaped by conflicting but yet complementary logics that were required for organisational survival. Research limitations/implications – This study contributes to the understanding of how an MCS can be exploited for organisational structural responses to multiple logics. Due to this research design, the present study deals with challenges of ex post rationalization. Practical implications – The results show options for organisational leaders to deal with different kind of worldviews (i.e. logics) that shape employees’ behaviour. Particularly, this paper explains how leaders can restructure their MCSs to influence human behaviour in times of radical change. Originality/value – This paper contributes to the literature on MCSs by showing what role MCSs play in structural responses to institutional complexity.

scholarly journals Enabling and coercive management control systems and organizational resilience

2019 ◽  
Vol 30 (81) ◽  
pp. 307-323 ◽  
Author(s):  
Ilse Maria Beuren ◽  
Vanderlei dos Santos
Keyword(s):  
Control Systems ◽  
Structural Equation ◽  
Positive Association ◽  
Negative Influence ◽  
Management Control ◽  
Management Control Systems ◽  
Equation Modeling ◽  
Organizational Resilience ◽  
Resilience Capacity

ABSTRACT This study examines the impacts of enabling and coercive management control systems (MCSs) on organizational resilience, in the cognitive, behavioral, and contextual dimensions. Research on resilience has sought to identify elements capable of improving organizational resilience capacity, and enabling and coercive MCSs may shed new light on this discussion. Understanding the role of MCSs in the creation and use of resilience capacities can help explain why some organizations manage to outperform others in situations of adverse and turbulent events. The literature has focused on enabling MCSs and adopts the premise that, in general, the use of coercive controls is negatively perceived. However, the results of the research show that enabling and coercive MCSs coexist in companies, and that coercive controls do not have a negative influence on resilience, even showing a positive association with the contextual dimension. A survey was conducted in companies that bought and/or were acquired by others, according to PwC Brazil’s Mergers and Acquisitions report, and the sample consists of 144 managers from different organizational areas of these companies who answered the questionnaire sent via Survey Monkey. The structural equation modeling (SEM) technique was applied to test the hypotheses. The study presents evidence that MCSs constitute antecedents of resilience capacity in organizations. This suggests that the design and use of MCSs may favor the development of capacities to deal with turbulences and unexpected events in advance.

Examining the nexus between transformational leadership and follower's radical creativity: the role of creative process engagement and leader creativity expectation

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md. Nurun Nabi ◽  
Zhiqiang Liu ◽  
Najmul Hasan
Keyword(s):  
Transformational Leadership ◽  
Organizational Performance ◽  
Creative Process ◽  
Structural Equation ◽  
Primary Objective ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Content Type

PurposeThe primary objective of this study is to examine the nexus between transformational leadership (TL) and followers' radical creativity (FRC). In contrast, creative process engagement (CPE) and leader creativity expectation (LCE) was employed as a mediating and a moderator role, respectively.Design/methodology/approachA quantitative exploratory survey was applied as a research design, and 293 valid responses were collected from industry-university collaborative team leaders-followers. The authors performed descriptive and partial least square based structural equation modeling (PLS-SEM) analysis using the SPSS 23 and Smart-PLS 3.0 package program to test the hypothesis.FindingsEmpirical results revealed that the TL positively and significantly influences the FRC. Therefore, the mediation of CPE bridges the relationship between TL and FRC, while the moderating role of LCE was insignificant. TL with higher CPE indirectly enhances the FRC.Research limitations/implicationsUnlike the prior conventional componential theory of creativity (CTC), this study extends the scope of CTC addressing CPE and LCE to investigate the nexus between TL and FRC and contributes to the current literature leaders-followers relationship.Practical implicationsPractically, this research contributes to the growing body of the literature demonstrating how organizations might foster radical creativity in their employees and how to inspire followers to participate in radical creativity activities that might enhance organizational performance.Originality/valueThis study has broadened the scope of the CTC by emphasizing the mediating function of CPE in promoting particular aspects of followers' creativity.

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