Search results

This paper considers firstly whether EVA® meets the objectives of benefit sharing and secondly, whether it can assist in achieving integration within the decentralised organisation. The empirical evidence presented is based on case study investigation of three New Zealand organisations, one quoted firm and two state‐owned enterprises, from a management accounting perspective. The results demonstrate firstly that EVA® can help to promote the benefit sharing philosophy through the use of value drivers, although benefit sharing was not the sole motivation for EVA® implementation. Secondly, integration is not necessarily achieved within the organisation. The use of EVA® can actually hinder vertical linkages within the firm, if decentralised units demonstrate a high degree of economic dependence. Integration between ex ante and ex post measures of EVA® is inhibited by a lack of understanding of the measure. Furthermore, integration between shareholder and managerial objectives is hindered by managerial selfinterest and action may be necessary to eliminate goal incongruence. Finally, the case study methodology is ideal for the study of EVA®, as it provides finer quality information than external analysis at the firm level, leading to more robust conclusions concerning the range of acceptable approaches to the philosophy of EVA®, and its evolution over time.

The Nature of Business Policy Business policy — or general management — is concerned with the following six major functions:

This paper uses a stakeholder approach to examine how the role of accounting and the status of accountants changed over a 30 year period (1970 to 2000) in a major Australian government trading enterprise. Data are gathered from semi‐structured interviews with organizational participants and documentation. The study provides support for the importance of stakeholders in shaping organizational processes and practices, including accounting practices, and for the effects of changes in stakeholder constituency and agenda on such practices. The study also provides evidence of the roles accounting and accountants may play in implementing a stakeholder agenda, including both instrumental and symbolic roles, and how the status of accountants may rise and fall commensurate with those roles.

The purpose of this paper is to make intelligible the rationalities and mechanisms through which markets have been proffered as alternatives or complements to traditional welfare‐based provision and the effect of this development on the subjectivity of workers.

The research involved collection of archival data, personal encounters and in‐depth interviews with managers, staff and elected representatives at a local authority in New Zealand. Michel Foucault's concept of governmentality is mobilised to interpret these data.

The paper finds that the mandatory changes required by legislation are associated with efforts to constitute local authority workers as business‐like subjects through disciplinary mechanisms and technologies of the self. While markets have permeated this local authority, with some managers and staff claiming to work in a business‐like manner and transact with each other as customers, these discourses have not vanquished the traditional concern of working for one organisation to serve the community.

While the results of this study are not generalisable to other contexts, they show how the introduction of New Public Management in a specific context is associated with a contest between the traditional discourses of community and public service, and the more recent ones of enterprise and customer. The paper illuminates the pathologies associated with these new technologies and how their implementation is often divergent from the rationalities in the name of which they are promoted.

The paper will contribute to ongoing debate on how best to deliver public goods and services and especially, the limits and potential of markets.

The paper's mobilisation of Foucault's governmentality framework in the study of a local authority case study in a contemporary setting is relatively unusual.

Entrepreneurial orientation (EO) plays an important role in explaining firm performance. In this study, we investigate the relation between EO and performance at the strategic business unit (SBU) level and examine the influence of decision-making mode and social capital of the focal business unit manager. Adopting the attention-based view (ABV) as our main theoretical perspective, we examine the impact of decision-making mode (i.e., participative vs. autocratic) on the EO–performance relation. In addition, we investigate the extent to which strong network ties with actors at lower, similar, and higher hierarchical positions, respectively, enable SBU managers to effectively engage in participative decision-making processes when leveraging EO. Our findings based on 119 SBUs of one large international company provide nuanced insights into how local conditions interact to shape EO’s influence on performance.

This study examines how two important situational factors (corporate diversification and business unit strategy) and two elements of a firm’s administrative system (accounting‐based budgetary controls and associated incentives) affect the presence of slack in business unit budgets in diversified firms. The relationships among these variables are established by building on theories from organizational economics, the information‐processing view of organizations, and organizational behavior. Data are collected from 37 firms and 153 business units within these firms. The main results indicate: that corporate diversification is positively associated with slack in business unit budgets; and that tight budgetary controls and high‐powered incentives effectively curtail such slack. However, diversification does not seem to drive corporate managers to rely more on these systems to reduce higher budgetary slack associated with diversification. This suggests: that diversified firms employ a conscious strategy of slack at the business unit level to reduce information‐processing needs at the top; or that the design of the internal management control system is a function of factors other than corporate diversification. With respect to the latter explanation, the results indicate that business units that pursue a differentiation strategy receive less tight budgetary controls, which leaves them with the necessary slack to effectively pursue the critical success factors on which their strategies are built.

Centralised workplace and decentralised facilities management organisations combine several interacting functions. Different levels of a network service organisation are presented. The interacting functions are divided into three organisational levels: strategic clients, network integrators, and functional service units. The research paper demonstrates proposals, data collection plans, and relevant lines of questioning for future case studies and network analysis on the basis of the connections discovered in the pilot study environments.

Strategic, operational, and functional connections are analysed by studying formal and informal links between the managers responsible for various functions. The research was conducted with four pilot cases divided into four types of business units: a corporate headquarters (a financial services group); a large business unit/subsidiary (a telecommunications service provider); a medium business unit in the area of property management (a real estate investment company); and a small business unit (a technology park). The pilot cases function as a laboratory for the authors future case studies.

The article provides information how formal connections such as cross‐functional teams, task forces, and liaison roles create stronger ties between strategic planning and operational service delivery. The pilot study implies that without formal connections the functions of the network service organisation faces barriers to both vertical and horizontal interaction.

Regardless of the popularity of the network analysis method, the conducted pilot cases and the found connections did not explain the whole value of centralised planning and strategic interaction between different workplace and service functions.

The network analysis takes place in a new facilities management environment. The article argues on a general level that post‐modernistic organisations, such as network, boundaryless, temporary, hybrid and virtual organisations, that are fragmented and managed informally can benefit from formal control mechanisms and meetings.

In modern corporations, internal R&D is considered an important source of new products and, therefore, a major mechanism of new business generation. Innovation studies report, however, that only a small fraction of all R&D projects are successful. They recognise that the quality of management is a key factor in predicting the outcome of innovation processes. In spite of this consensus, only a few empirical studies have described how managers from various organisational positions jointly produce certain innovative outcomes in certain industries and corporate contexts (Maidique 1980, Burgelman & Sayles 1986).

This study investigates the use of performance measures and how performance measurement impacts performance.

This study was conducted through multiple case studies in a single organisation. Comparisons are made between performance measurement practices in comparable high and average‐performing business units.

The findings suggest that current research into the impact of performance measurement on performance may be too simplistic in its approach as much of the research relies on studying the physical and formal systems used, ignoring the types of factors found to be important in this study.

Being based on a single organisation, the wider applicability of the specific findings from this study should be questioned. However, if, as we suggest, the interactive nature of the use of the measurement system is important, future research will need to find ways of observing, measuring and quantifying this interactivity to allow a richer picture of the impact of performance measurement on performance to be developed.

The differences observed between the high and average‐performing cases was in the way they managed with the measures. Average‐performing business units used the performance measurement system as a simple control system, whereas, high performing business units were using the measurement system much more interactively.

This paper highlights the importance of using performance measures interactively and suggests further research into Simons' concept of “interactive control”.

Once a build, hold, or harvest strategy has been adopted for a business, how does the corporation ensure its implementation? The answers range from decentralizing strategic planning to tying the compensation system to successful plan implementation.