Paula van Veen-Dirks

Strategic control: meshing critical success factors with the balanced scorecard

Abstract Companies operating in a fast-paced business climate must pay careful attention to non-financial performance indicators, which can be determined by both the Balanced Scorecard and Critical Success Factors. This paper analyses the relationship between the Balanced Scorecard and Critical Success Factors and devises a framework to bridge the two systems. The paper is based on a six-year research project of 15 companies in the Netherlands and some of the case studies illustrate how the integrated method can be employed across a variety of industries to provide a more adequate performance management system.

The Dynamic Relation between Management Control and Governance Structure in a Supply Chain Context

Purpose – The purpose of this paper is to show that local management control systems within supply chain organisations and the governance of supply chains are intertwined and that local control systems and governance structure have an important effect on the functioning of the supply chain.Design/methodology/approach – The paper reports on a case study of a supply chain and examines how local management control systems within the participating organisations affect cooperation between the organisations in the supply chain. In the case study, a supply chain, including eight food manufacturers, two logistic service providers, and two retailers, is investigated.Findings – The behaviour of several entities in the chain is explained by examining the present local management control systems. The main conclusion is that these systems call for behaviour that is not congruent with the broad supply chain objective.Research limitations/implications – The research is based on a case study in one supply chain that has ...

Constraining and facilitating management control in times of austerity

Purpose - – The purpose of this paper is to examine how management control (MC) within governmental departments is used in times of austerity, and how insights from agency and stewardship theory can enhance the understanding of this issue. Design/methodology/approach - – The authors distinguish two types of MC (constraining and facilitating) based on their different assumptions regarding human behavior (agent-like and steward-like). The authors empirically analyze changes in the use of these types of MC in four cases located in two municipalities. The collected data consists of 51 semi-structured interviews, desk research and multiple field observations. Findings - – The authors find that MC at the departmental level becomes more constraining in times of austerity. The authors suggest that an overemphasis on constraining MC has negative consequences. It can, for instance, evoke agent-like, opportunistic behavior while it disregards potential steward-like behavior. These negative consequences are less prevalent when there is a simultaneous increase in emphasis on the use of facilitating MC elements. Originality/value - – The authors acknowledge “human ambivalence,” i.e. an employee’s recurring choice between agent-like and steward-like behavior, and illustrate the dangers of overly relying on constraining types of MC. The authors also contemplate alternative strategic managerial responses to austerity in a public sector context.

Accounting for sustainability: an active learning assignment

Purpose Sustainability is one of the newer topics in the accounting courses taught in university teaching programs. The active learning assignment as described in this paper was developed for use in an accounting course in an undergraduate program. The aim was to enhance teaching about sustainability within such a course. The purpose of this paper is to offer experience-based guidance to faculty members around the world who would like to include sustainability in their courses. Design/methodology/approach This paper describes the introduction of sustainability in an accounting course via an active learning approach. The assignment that was developed formed part of a management accounting course for 450 business students. In the assignment, the students were asked to propose a sustainable solution for the university organization. Several tools were provided to the students to support them in obtaining an insight into the financial and societal consequences of the proposed solution. Findings The encouraging experiences with the assignment at the university where it was designed show that it effectively improved students’ understanding of sustainability issues. Furthermore, the assignment provided insight into how management accounting can play a role in enhancing sustainability in an organization. Additionally, the experiences with the assignment show that it can be used to make courses more lively and attractive to students. Originality/value As yet, textbooks have not offered much support in how to incorporate sustainability into the field of accounting. The assignment represents a novel use of management accounting concepts in the study of sustainability and is relevant to educators as an example of an active learning approach on the topic of sustainability.

Do the Motives for Adoption of the Balanced Scorecard Affect its Development and Use

Abstract This study examines the relationship between the motives for balanced scorecard (BSC) adoption and the development and use of the BSC. We expect that a stronger focus on economic adoption motives is associated with full development of the BSC and its integration into the performance measurement and control systems of the firm. In contrast, we expect that a higher focus on legitimacy as a motive for adoption leads to loose coupling of the BSC with the control systems of the firm. We expect legitimacy as a catalyst to BSC adoption leads to a lower level of BSC development and use, which enables the organization to keep the environment satisfied, but does not influence processes within the organization. The data are obtained from a web-based survey with 88 useful responses of firms indicating that they use the BSC. The study investigates the relationship between the motives for BSC adoption (economic and legitimacy) and the development and use of the BSC. The results provide evidence for the hypothesis that economic motives for adoption positively affect the development of the BSC. In addition, the results partially support the hypothesis that legitimacy motives negatively affect the use of the BSC. When legitimacy comes via the mechanism of mimetic isomorphism, it has a negative effect on use of the BSC. Surprisingly, however, legitimacy has a positive effect on use when it comes via the mechanism of normative isomorphism.