In this article, we shed light on the challenge of developing appropriate management control practices for sustainable business models. In such business models, it is necessary to properly address the sustainability performance of the company. We conceptually explore the role of management control in sustainable business models, and argue that for companies to design and implement a sustainable business model, their company’s management control system needs to account for a multidimensional understanding of performance. We explore different management control needs for firms that aim to increase their social and environmental performance. The study thus contributes to the understanding of the relationship between sustainable business models and management control practices and indicates avenues for further research.
To what extent do Enterprise Resource Planning (ERP) systems enable or limit the implementation and use of Beyond Budgeting ideas? This article investigates this question by drawing upon a qualitative case study in the oil and gas industry. We examine tensions arising from the conflicting logics of Beyond Budgeting (BB) and ERP systems as well as the strategies an organization uses to resolve them practically. More specifically, BB is driven by the logics of flexibility and dynamic adaptation that are based on bottom-up and team-based management control, which come directly into conflict with the logics of ERP systems that are driven by concerns of integration, standardization, and centralization. This article theorizes and demonstrates how Dynamic Oil “manages” these conflicting logics behind ERP systems and BB. We show that BB is placed outside of the core ERP system in a so-called Best of Breed (BoB) solution. Our case also shows, however, that ERP systems and BB are used concomitantly, and, depending on the specific purpose of control at a given time, one or the other gains significance with regard to managers’ attention. This article contributes to Management Accounting Innovations (MAIs) literature and to ERP literature, addressing the socio-technical nature of accounting objects.
How and why companies select and innovate their business models is an important theme in the emerging literature on business model innovation. While the role of technological advancements and changing industry standards have been highlighted as important drivers of business model change, the exact processes of experimentation, selection and innovation have received relatively less attention. To explore what factors determine business model selection and innovation, we study the recent changes in the newspaper industry. Through a qualitative study of two media groups, we explore the drivers behind business model design and innovation in the Norwegian newspaper industry. Key findings of this study point towards the important roles and interrelatedness of external factors (technological innovation, new competition and changing customer behavior) and internal organizational factors (group affiliation and willingness to experiment) in determining the selection of innovative business models in the newspaper industry. Hereby, we contribute to the emerging literature on the drivers and determinants of business model selection and innovation.
The purpose of this study was to explore how and under what conditions two different leadership roles are able to facilitate an organizational climate that supports creativity. The study was conducted in a leading professional service firm. The introduced hypotheses were tested by means of a structural equation model. Findings indicate that the leadership roles are conceptually different and that organizational structure is important for leaders’ ability to create a climate that supports creativity. The results also indicate that relational and change leadership behaviors are vital for leaders when creating a climate that supports creativity. Furthermore, both job autonomy and intrinsic motivation are found to be important dimensions for enhancing the creative climate.