Top managers’ formal and informal control practices in product innovation processes

2020 ◽  
Vol 17 (4) ◽  
pp. 497-524
Author(s):  
Wen Pan Fagerlin ◽  
Eva Lövstål
Keyword(s):  
Product Innovation ◽  
Management Control ◽  
Control Mechanisms ◽  
Structured Interviews ◽  
Holistic View ◽  
Content Type ◽  
Informal Controls ◽  
Top Managers ◽  
Innovation Projects ◽  
Innovation Processes

Purpose This study aims to understand the formal and informal practices of top managers as they seek to control product innovation processes and how the style of control used differs during development stages and gates. Design/methodology/approach A qualitative in-depth case study was conducted at a multinational corporation (pseudonym: MEC). The authors examined 12 product innovation projects and carried out semi-structured interviews to understand the experiences, perceptions and challenges of the people involved in product development projects with a focus on the interactions between top managers and the project teams. Findings The authors found that MEC uses formal control mechanisms such as a stage-gate model and a project management and reporting system to keep track of the progress of innovation projects. In addition, top managers use informal controls through involvement in innovation activities and interaction with the team members during the stages and gates of the development process. To carry out their control practices top managers use four distinct styles of control as follows: participative, facilitative, empowering and authoritative. Practical implications Suggestions are provided for managers on how formal and informal management control tools can be used in innovation processes. The authors show how top managers can broaden their range of interventions by involving themselves in product innovation projects in different ways. Originality/value This paper shows how the combination of formal and informal controls can generate a more holistic view of management control in innovation. It also adds to previous conceptualizations of control use by suggesting four distinct styles, which top managers can use to involve themselves in product innovation processes.

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 Unpacking the package

2015 ◽  
Vol 12 (4) ◽  
pp. 346-376 ◽  
Author(s):  
Mark Evans ◽  
Basil Phillip Tucker
Keyword(s):  
Organisational Change ◽  
Clean Energy ◽  
Management Control ◽  
Theory And Practice ◽  
Structured Interviews ◽  
Informal Control ◽  
Content Type ◽  
Energy Company ◽  
Management Controls ◽  
Control Package

Purpose – The purpose of this paper is to explore the ways in which both formal and informal control, operating as a package, are implicated in responding to organisational change arising from the introduction of the Australian Federal Government’s Clean Energy Act (2011). Design/methodology/approach – This investigation is based on a review of archival data, and semi-structured interviews conducted with 15 staff at different hierarchical levels within an Australian renewable energy company. Findings – Although formal management control systems and informal control both played important roles in the organisation’s reorientation to organisational change, it was the latter form of control that predominated over the former. The influence of the prevailing organisational culture, however, was pivotal in orchestrating both formal and informal control efforts within this organisation. Originality/value – This study contributes to management control theory and practice in two ways: first, it provides much needed empirical evidence about the ways in which management controls act as a package; second, it offers insights into the relative importance of the components of a management control package in the context of a particular organisational change. In addition, it responds to Laughlin’s (1991) call for empirical “flesh” to be added to the skeletal framework he advocates to make this conceptualisation of organisational change, “more meaningful”.

Outsourcing relationship management: accounting in the decision mix

2018 ◽  
Vol 39 (5) ◽  
pp. 41-49
Author(s):  
Mirghani Nimir Ahmed
Keyword(s):  
Management Accounting ◽  
Accounting Information ◽  
Relationship Management ◽  
Internal Audit ◽  
Management Control ◽  
Control Mechanisms ◽  
Monitoring Cost ◽  
Content Type

Purpose The paper aims to examine the role of management accounting and accounting information in decisions to outsource and manage outsourcing relationships. Design/methodology/approach The paper uses a case study method. Data are collected through semi-structured interviews and informal discussions with executives of the participating companies. Official documents and secondary materials were analysed. Findings The findings of these cases present evidence of some roles given to accounting information and varying tasks assumed by accountants and finance staff in the outsourcing projects undertaken. These roles and tasks range from financial evaluation of new outsourcing proposals and alternatives, consultation and price negotiations in the planning and feasibility stages to the management of outsourcing relationships including monitoring, cost analysis, performance measurement, internal audit, design and implementation of risk-reward payment schemes. Managing the outsourced functions in one case involved in the use of informal control mechanisms such as trust, knowledge sharing, mutual understanding and cooperation between partners. Practical implications The paper highlights the role of management accounting and information in outsourcing relationship management and evaluation. The case findings provide the opportunity for management practitioners to understand the strategic role of management accountants in the management of inter-firm relationships. Originality/value The case study presents new empirical evidence of the role of management accounting and accounting information in the management control of outsourcing relationships.

Enabling characteristics of new budgeting practice and the role of controller

2016 ◽  
Vol 13 (1) ◽  
pp. 31-56 ◽  
Author(s):  
Tiina Henttu-Aho
Keyword(s):  
Design Methodology ◽  
Relevant Information ◽  
Management Control ◽  
Holistic View ◽  
New Developments ◽  
Role Change ◽  
Content Type ◽  
Paper Company

Purpose This paper aims to investigate the emergence of the enabling characteristics of new budgetary practices and their implications for the role of controller. Design/methodology/approach The longitudinal perspective of this qualitative case study is based on interviews of controllers and managers involved in budgetary work. This study monitored the four enabling characteristics of management control, namely, repair, internal transparency, global transparency and flexibility (Adler and Borys, 1996), related to the new budgeting practices in one global paper company. Findings The findings of the study demonstrate that the implementation of rolling forecasting was a major attempt at “repair” to remedy the incompleteness of accounting information, which made controllers experts in producing and delivering more realistic forward-looking information in the organization. The increasing internal and global transparency of new budgetary practices enabled controllers at various levels of organization to develop new competences, which helped controller network to build a holistic view of the totality of control and supply more relevant information in organization. Moreover, the inherent flexibility of the system was a major condition for improving organizational effectiveness in budgetary work. However, the study shows that the controller’s attitude towards enabling formalization is not necessarily positive if the system is not aligned with professional mindset and competence. Originality/value This study adds to the understanding of the complementarity between new developments of budgeting and controller role by addressing the enabling uses of management control systems, which have the potential to enhance the controller role change.

Modeling the barriers of Indian telecom services using ISM and MICMAC approach

2017 ◽  
Vol 11 (2) ◽  
pp. 188-209 ◽  
Author(s):  
Faisal Talib ◽  
Zillur Rahman
Keyword(s):  
Literature Review ◽  
Clear Understanding ◽  
Interpretive Structural Modeling ◽  
Holistic View ◽  
Content Type ◽  
Micmac Analysis ◽  
Top Managers ◽  
Effective Performance ◽  
Relationship Model ◽  
Telecom Sector

Purpose The purpose of this paper is to identify the potential barriers of telecom services and develop relationships among them using interpretive structural modeling (ISM) in the Indian telecom sector. Further, this paper intends to find the driving and dependence powers of telecom barriers, using MICMAC (Matriced' Impacts Croise′s Multiplication Applique′ea′un Classement) analysis. Design/methodology/approach A group of experts from telecom sector and academia was consulted and the ISM was used to develop the contextual relationship among identified barriers of telecom services. The results of ISM are used as an input to MICMAC analysis, to further classify identified barriers based on their driving and dependence powers. Findings This paper has identified 11 barriers of telecom services from the literature review and opinion of experts, and a contextual relationship model was developed using the ISM technique. The paper further studied barriers based on their driving and dependence powers using MICMAC analysis that classifies them into four clusters. The results identified the barriers such as “lack of adequate investment in infrastructure expansion”, “interference of private operators”, “legal and regulatory issues”, “lack of maintenance culture” and “lack of financial resources and high cost” as strategic-level barriers that, if dealt with carefully, can help overcome the effect of other barriers preventing the effective performance of the Indian telecom sector. Research limitations/implications Although, there are a number of barriers that affect the performance of telecom services, existing theories, models and frameworks have focused on identification of factors, their implementation and benefits, and thus, these theories lack a holistic view in understanding those barriers which hinder the performance of the telecom sector. Top-managers and policymakers need to be more concerned about these barriers so that the performance of the Indian telecom sector could be improved. Originality/value A thorough literature review has revealed that no such study has been undertaken that provides any clear understanding of the barriers of telecom services, linkages between them and hierarchical relationships among the barriers.

Significance of operational capabilities of suppliers on the front-end decision making in apparel product innovation in Sri Lanka

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niromi Seram ◽  
Julian Nanayakkara ◽  
Gamini Lanarolle
Keyword(s):  
Decision Making ◽  
Sri Lanka ◽  
Product Innovation ◽  
Sri Lankan ◽  
Structured Interviews ◽  
Apparel Manufacturing ◽  
Content Type ◽  
Front End ◽  
Operational Capabilities ◽  
Apparel Product

Purpose The suppliers are recognized as important external sources who can significantly contribute by working together with the buyer during the innovation process. Operational capabilities of suppliers can be one of the considerable factors when selecting them to participate in the activities at the front-end of innovation. However, proper understanding of the influence of operational capabilities of suppliers on front-end decision-making in apparel product innovation is still very limited particularly in the context of the Sri Lankan apparel industry. Therefore, this study aims to explore the influence of operational capabilities of suppliers on the front-end decision making in apparel product innovation in Sri Lanka. Design/methodology/approach Both semi-structured interviews and a questionnaire survey were used as data collection techniques. Six senior managers for the interviews and 60 participants for the questionnaire were randomly selected. All those who participated in interviews and the questionnaire respondents have been involved in the front-end of innovation in different apparel manufacturing organizations in Sri Lanka. Findings The results indicated that the operational capabilities of suppliers had a direct positive influence on front-end decision-making, and the suppliers’ production flexibility was found to be the most influential. Further, the results highlighted that 27.3% of the front-end decisions associated with apparel product innovation in Sri Lanka were influenced by the factors governing operational capabilities of suppliers. Originality/value The findings of the research will be beneficial for both academia and industry. The findings will be useful to extend the current understanding and make a noteworthy contribution to this topic and to provide useful and practical guidance to material suppliers and supporting industries who work with Sri Lankan apparel manufacturing.

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.

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.

Creativity and forms of managerial control in innovation processes: tools, viewpoints and practices

2019 ◽  
Vol 23 (2) ◽  
pp. 214-229 ◽  
Author(s):  
Sophie Raedersdorf Bollinger
Keyword(s):  
Information System ◽  
Design Methodology ◽  
Innovation Process ◽  
Management Control ◽  
Human Relationship ◽  
Managerial Control ◽  
Management Tools ◽  
Content Type ◽  
Innovation Activities ◽  
Innovation Processes

Purpose Innovation processes are inherently uncertain. They account for a high proportion of risks taken by companies and cause tensions. The purpose of this paper is to consider whether some management tools facilitate the smooth implementation of an innovation process. Does the relevance of these tools depend on the size of the company, its activity sector, the type of innovation expected or the viewpoint of the manager in charge? Design/methodology/approach The author answers these questions using a quantitative questionnaire survey of 169 companies. This survey allows the author to describe the tools and practices of management control of innovation processes and to highlight the specific needs of different sets of companies. Findings The collected data show a convergence of tools and practices used, which the literature on managerial control and creativity helps us to understand. Originality/value The paper also contributes to reconciling management control and innovation activities. In particular, it investigates how the use of management tools varies depending on managers’ viewpoints. A distinction is made between formal, information system-based tools and more informal, human relationship-based tools.

Building and property management framework for state schools in New Zealand

Facilities ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
An Thi Hoai Le ◽  
Niluka Domingo ◽  
Eziaku Onyeizu Rasheed ◽  
Kenneth Sungho Park
Keyword(s):  
New Zealand ◽  
School Boards ◽  
Review Literature ◽  
Property Management ◽  
Ministry Of Education ◽  
Structured Interviews ◽  
Content Type ◽  
Top Managers ◽  
Comprehensive Framework ◽  
State Schools

Purpose This paper aims to develop an integrated and comprehensive framework for building and property management (BAPM) for state schools in New Zealand. The results are expected to clarify the complicated process and provide a guide for school boards to manage their property effectively and efficiently. It also seeks to explore the relationship between the key stakeholders and how this impacts the BAPM. Design/methodology/approach In addition, to review literature, qualitative data were obtained through semi-structured interviews with 16 top managers in state schools. The data analysis results were used to develop the framework using the integration definition for process modelling. Findings The findings contribute to understanding the processes in the BAPM in state schools of school board members by adding input, output, control and mechanism elements in each activity of the processes. The systematic models with main activities and people involved are presented as a guide for school boards in state schools in New Zealand. Challenges and issues in the processes are also identified to draw further study for both school boards and the Ministry of Education. Research limitations/implications The research was conducted with the participation of stakeholders who are sampled from top managers in state schools in New Zealand. A larger scale of participants from other schools may generalise the findings further. Practical implications The research findings are based on the needs and requirements of the stakeholders to understand, implement and control the BAPM for their schools and aid them to achieve the best value for money spending on the management. Originality/value The paper highlights the complexity of the BAPM in schools, presents the roles and responsibilities of the school stakeholders and proposes a systematic framework to assist the school managers in this management process.

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