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1 – 10 of 14Biljana Pešalj, Andrey Pavlov and Pietro Micheli
The purpose of this paper is to respond to recent calls for understanding how multiple management control (MC) and performance measurement (PM) systems are used simultaneously for…
Abstract
Purpose
The purpose of this paper is to respond to recent calls for understanding how multiple management control (MC) and performance measurement (PM) systems are used simultaneously for managing performance, particularly in the context of small- and medium-sized enterprises (SMEs).
Design/methodology/approach
Data are collected during an in-depth case study of MC and PM and management practices in a Dutch SME using multiple data sources and elicitation methods, including interviews and participant observations.
Findings
This study identifies managerial practices that enable the interplay of the four control systems – beliefs, boundaries, diagnostic and interactive – helping the organization manage organizational tensions in relation to short- and long-term focus, predictable goal achievement and search for new opportunities, internal and external focus, and control and creativity.
Research limitations/implications
This paper advances the research on integrating multiple aspects of performance management, particularly technical and social. This research is based on a single case study; future qualitative and quantitative studies could explore the interplay between the four control systems in other settings and explore the relationship between control systems and leadership style.
Practical implications
Managing performance requires active and continuous use of all four control systems. This is particularly salient in SMEs where less formal controls play a key role and where balance needs to be ensured despite the lack of managerial processes and capabilities.
Originality/value
The findings advance PM and management theory and practice in the context of SMEs.
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Andrey Pavlov and Pietro Micheli
Traditional approaches to organizational performance management that emphasize objectivity, control and predictability are rapidly losing relevance in an environment characterized…
Abstract
Purpose
Traditional approaches to organizational performance management that emphasize objectivity, control and predictability are rapidly losing relevance in an environment characterized by increasing levels of complexity and dynamism. This paper draws on complexity theory to suggest a new paradigm for managing performance in organizations.
Design/methodology/approach
The paper draws on the common features of complex systems and the corresponding concept of emergence to revisit key themes in organizational performance management and propose a set of implications for research and practice.
Findings
Understanding organizations as complex systems and performance as an emergent property of such systems leads to a set of new research questions, the adoption of alternative methods and the formulation of novel propositions. It also has various implications for both academic research and managerial practice, from moving away from the traditional notion of organizational alignment to adopting a more explicit stakeholder-based view in the design and use of measurement systems.
Originality/value
The paper highlights the great potential of complexity theory for addressing contemporary issues in the field of organizational performance management and charting the landscape for its future development.
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Andrea Bellisario, Andrey Pavlov and Martijn Pieter van der Steen
This paper aims to address an important theoretical shortcoming in the conceptualization of internal alignment by investigating the cognitive processes involved in aligning…
Abstract
Purpose
This paper aims to address an important theoretical shortcoming in the conceptualization of internal alignment by investigating the cognitive processes involved in aligning operations with strategy and the role of performance measurement (PM) in sustaining these processes.
Design/methodology/approach
A theory-building study investigates the process of using PM to drive the implementation of a new strategy in a large beer manufacturer in Italy. The study uses a sensemaking perspective to theorize the findings. Data were collected through semi-structured interviews, field observations and company documents.
Findings
This study develops a theoretical model suggesting that establishing and maintaining internal alignment occurs through seeking, assembling, adjusting and finalizing the meaning of how strategic priorities inform local action. PM plays a central role in this process by providing interpretive support.
Research limitations/implications
This article advances a cognition-centred view of internal alignment that complements the behavioural aspect of the phenomenon emphasized in prior literature.
Practical implications
Using PM for aligning operations with strategy is a complex and iterative process that requires time and effort and generates temporary stability. Managers may need to complement traditional approaches to alignment with providing space for sensemaking.
Originality/value
The paper proposes a view of internal alignment as an ongoing interpretive process that is sustained by PM. This process brings about the consistency of meanings that generates strategy-consistent behaviours.
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George W. Blazenko, Andrey D. Pavlov and Freda Eddy‐Sumeke
The purpose of this paper is to compare investment in innovation (e.g. R&D) between new venture start‐ups before commercialization and operating businesses after commercialization…
Abstract
Purpose
The purpose of this paper is to compare investment in innovation (e.g. R&D) between new venture start‐ups before commercialization and operating businesses after commercialization.
Design/methodology/approach
Real options methods were used to model a new venture start‐up as a perpetual call option on an operating business that grows with R&D. The operating business uses R&D to improve actual earnings while the start‐up uses R&D to improve prospective earnings. When the start‐up entrepreneur commercializes his/her new product, device, or service with conventional investment (e.g. plant, property, and equipment to begin production), prospective earnings convert into actual earnings.
Findings
The ability of the start‐up entrepreneur to avoid commercialization costs upon failed R&D makes R&D more valuable to the start‐up entrepreneur than to the manager of the already operating business (for whom commercialization costs are sunk) and despite R&D costs that the start‐up incurs without the revenues that only commercialization generates. The value of R&D to the start‐up can be so great that the entrepreneur invests in R&D before the manager of an otherwise similar operating business in similar business conditions.
Originality/value
Without favoring either a priori, the authors show that under broad circumstances, a new venture start‐up undertakes R&D before an already operating business. The authors also discuss the empirical implications of the results.
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Mike Bourne, Andrey Pavlov, Monica Franco-Santos, Lorenzo Lucianetti and Matteo Mura
This paper aims to advance the current debates on the effect of performance measurement (PM) in the operations management domain. In order to accomplish that, it investigates the…
Abstract
Purpose
This paper aims to advance the current debates on the effect of performance measurement (PM) in the operations management domain. In order to accomplish that, it investigates the contribution of business PM and human resource management (HRM) practices to business performance.
Design/methodology/approach
The paper is based on ten case studies conducted across both manufacturing and service organisations capturing evidence from both the human resource function and line management.
Findings
In the PM and HRM literatures, there is a debate about the contribution these practices make to the overall performance of the organisation. In particular, the results from the PM literature are inconclusive. This paper argues that performance is a result of employee engagement and that the PM system is a communication and guiding mechanism, which if implemented well and used appropriately, can channel the efforts of employees striving to perform.
Originality/value
This paper contradicts the performance drivers approach to PM by providing new insights into the roles PM and HRM practices play in delivering business performance. Additionally, the paper develops a set of propositions as a means of clearly stating the findings and for encouraging future research in this area.
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Existing research evaluating the effect of performance measurement (PM) on performance produces conflicting results, indicating that the effect is poorly understood. This paper…
Abstract
Purpose
Existing research evaluating the effect of performance measurement (PM) on performance produces conflicting results, indicating that the effect is poorly understood. This paper aims to address this problem by proposing a theoretical model of the effects of PM on performance.
Design/methodology/approach
The paper reviews the PM and MCS literature, extracting the factors that help to explain the effect of PM on performance. Then it applies the organizational routines perspective as an analytical lens to tie these factors into a coherent explanatory model.
Findings
A theoretical model shows that PM has three distinct effects on the organizational processes that deliver performance – the trigger, guidance, and intensification effects.
Originality/value
The paper employs the organizational routines perspective, moving beyond the description of the effects of PM on performance to offer a theoretical model explaining these effects. As such, it responds to a number of contemporary challenges in the PM field – most importantly, the broad need for a solid organizational foundation for the studies of PM and the explanation of the mechanism through which PM affects organizational performance.
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Abstract
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Elena-Mădălina Vătămănescu, Andreia Gabriela Andrei, Diana-Luiza Dumitriu and Cristina Leovaridis
The paper aims to investigate the standpoints and practices of university members from European developing countries regarding the harnessing of the intellectual capital (IC…
Abstract
Purpose
The paper aims to investigate the standpoints and practices of university members from European developing countries regarding the harnessing of the intellectual capital (IC) within online academic social networks.
Design/methodology/approach
A questionnaire-based survey with 210 university members was conducted, with the indicators adopting prior measurement scales which were further adapted to a network framework.
Findings
The organizational policies and practices relate positively and highly significantly with the valuation of the network-based IC components. Moreover, 63 per cent of the professional and organizational competitiveness of higher education institutions is determined by the exploitation of the IC embedded in online academic networks.
Research limitations/implications
All survey respondents were from the European developing countries, which may limit the general applicability of the findings. Also, the emphasis is laid solely on online academic networks.
Practical implications
This paper brings to the fore both the potential and the state-of-the-art in leveraging the IC of online specialized networks which are indicative of the academic field. When acknowledged as such, the network-based IC is liable to generate substantial competitive advantages at the professional and organizational levels at the same time.
Originality/value
This research adds to the extant literature in two main ways. First, it advances a new construct – network-based IC – in the context of the online academic social networks. Second, it proposes a research model for addressing the network-based IC from a competitive advantage perspective.
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