Marco Vedovato

The efficiency of accounting service provision

The paper uses a procedure called data envelopment analysis (DEA) to compare internal against external (outsource) efficiency in the delivery of finance function activities. The approach allows a direct comparison between the in‐house efficiency of UK small, medium and large companies in managing their accounting activities both with UK outsource contractors and also against the rather larger and more numerous contractors observed in Italy. The paper finds that, through comparative advantages, outsourcing presents a more efficient solution for the management of very small firm accounting than internal provision. Furthermore, there is evidence that substantial scale benefits continue to be available to outsource contractors, while inefficiency on internal provision is mainly technical. The paper concludes that outsourcing provision is likely to offer worthwhile savings to small firms, allowing them to shed competitive weaknesses and operate at efficient or best practice levels. At the same time, by converting an internal fixed cost, fixed capacity activity into a flexible, variable cost activity, SMEs have the potential to transform a previously unmanageable activity into an efficient or best practice activity that can grow or contract with the business.

Strategy Visualization, Cognitive Frames, and Strategy Renewal in SMEs

This paper provides experimental evidence that visual representation of strategy and related concepts increases the probability of updating the cognitive frames of small entrepreneurs. An original strategy mapping technique and Osterwalder and Pigneur’s (2010) business model canvas were used to help 42 small entrepreneurs to critically review their current strategies and choices. A questionnaire about perceptions of the external environment and internal structure was submitted to the participants before and after the experiment. The same questionnaire was submitted twice to a matched control group of 50 SME entrepreneurs who were not involved in any activity. The results show that involvement in the visualization experiment significantly increased the probability of the participant changing perceptions on strategic issues, with a stronger impact for strategy mapping. The results are interpreted as indicative of a positive contribution of visual representation in strategy renewal.

Le mappe strategiche per vincere le resistenze all’integrazione aziendale

Business integration is certainly an important source of opportunities for firms but also a particularly challenging managerial task. Business integration is usually conceived for achieving technical and strategic complementarities but often fails at delivering the expected value as the importance the post integration phase is undervalued. This article follows the development of Innova Group, from a medium national player to a multinational group. Through a deep qualitative study we show how the persistence of identities, knowledge and practices inhibits the achievement of an effective integration and of the expected advantages. Moreover we show how the visual representation of cognitive models of organizational members in strategy maps offers important benefits as for the reciprocal understanding and strategy development.

Strategy and Business Model in Integrated Reporting

The International Integrated Reporting Framework suggests the inclusion of a description of an organization strategy and business model in public integrated reporting. An organization’s strategy and business model lies at the heart of its capacity to create and sustain value over time. However, reporting on these issues is far from a mature practice and companies lack previous experience as well as established models to guide them. This chapter examines the current practice of reporting on strategy and business models. We draw on the guidelines for strategy and business model reporting proposed by the International Integrated Reporting Council, as well as relevant literature on strategy and business models, to discuss four recent reports illustrative of the guiding principles.