Search results

The purpose of this paper is to apply the aspects of decision theory (DT) to performance measurement and management (PMM), thereby enabling the theoretical elaboration of volatility, uncertainty, complexity and ambiguity in the business environment, which are identified as barriers to effective PMM.

A review of decision theory and PMM literature establishes the Cynefin framework as the basis for extending the performance alignment matrix. Case research with seven companies explores the relationship between two concepts under-examined in the performance alignment matrix – internal dominant logic (DL) as the attribute of organisational culture affecting decision making, and the external environment – in line with the concept of alignment or fit in PMM. A focus area is PMM related to sustainable operations and sustainable supply chain management.

Alignment between DL, external environment and PMM is found, as are instances of misalignment. The Cynefin framework offers a deeper theoretical explanation about the nature of this alignment. Other findings consider the nature of organisational ownership on DL.

The cases are exploratory not exhaustive, and limited in number. Organisations showing contested logic were excluded.

Some organisations have cultures of predictability and control; others have cultures that recognise their external environment as fundamentally unpredictable, and hence there is a need for responsive, decentralised PMM. Some have sought to change their culture and PMM. Being attentive to how cultural logic affects decision making can help reduce the misalignment in PMM.

A novel contribution is made by applying decision theory to PMM, extending the theoretical depth of the subject.

This study aims to aid theory building, the use of decision theory (DT) concepts in sustainable supply chain management (SSCM) research is examined.

An abductive approach considers two DT concepts, Snowden’s Cynefin framework for sense-making and Keeney’s value-focussed decision analysis, in a systematic literature review of 160 peer-reviewed papers in English.

Around 60 per cent of the papers on decision-making in SSCM come from operational research (OR), which makes explicit use of DT. These are almost all normative and rationalist and focussed on structured decision contexts. Some exceptions seek to address unstructured decision contexts via Complex Adaptive Systems or Soft Systems Methodology. Meanwhile, a second set, around 16 per cent, comes from business ethics and are empirical, behavioural decision research. Although this set does not explicitly refer to DT, the empirical evidence here supports Keeney’s value-focussed analysis.

There is potential for theory building in SSCM using DT, but the research only addresses SSCM research (including corporate responsibility and ethics) and not DT in SCM or wider sustainable development research.

Use of particular decision analysis methods for SSCM may be improved by better understanding different decision contexts.

The research shows potential synthesis with ethical DT absent from DT and SCM research.

Empirical behavioural decision analysis for SSCM is considered alongside normative, rational analysis for the first time. Value-focussed DT appears useful for unstructured decision contexts found in SSCM.

Empirical, behavioural decision analysis for SSCM is considered alongside normative rational analysis for the first time. Value-focussed DT appears useful for unstructured decision contexts found in SSCM.

Current accounting practice tends to split environmental complexities into quantifiable, codified elements, producing codified simplifications of the “complex” in pursuit of environmental externalities. This has led to standardization, but has done little to motivate organizations to engage in more environmentally-aware behavior that transcends the coercive dimensions of codification. The work of Alexander von Humboldt (1769–1859) can bring new insights and perspectives to social and environmental accounting (SEA). In discussing Humboldt's philosophy of understanding the interconnectedness between people, their contexts (cultures) and their environment, the authors contribute to the emerging SEA literature on notions of interconnectedness and the web of accountabilities. The authors also explore how a Humboldtian approach may help break through the current epistemological boundaries of SEA by combining accurate measurement with imagery to make the “complex” manageable whilst embracing interconnectedness and hermeneutics.

In this conceptual paper, the authors humbly draw on Humboldt's legacy and explore the underlying philosophical assumptions of Humboldtian science. The authors then contrast these with current SEA approaches in the literature and derive new insights into their intentionality and practical use.

Re-examining Humboldt's pioneering work enables us to pinpoint what might be missing from current SEA approaches and debates. Humboldt upheld an “ethics of precision,” which included both measurement accuracy and qualitative relevance, and combined hands-on scientific fieldwork with the aesthetic ideals and interconnectedness of the age of Romanticism. Drawing on Humboldtian science, the authors propose focusing on the interconnectedness of nature and humanity, embracing the qualitative and hermeneutical and including aesthetics and emotion in environmental visualizations.

The paper elucidates why and how Humboldtian science might inform, guide and enhance the emancipatory potential of SEA in the 21st century. Specifically, the authors discuss Humboldt's approach of linking accurate measurement with imagery to convey a sense of interconnectedness.