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Article
Publication date: 2 November 2023

Janice Wobst, Parvina Tanikulova and Rainer Lueg

The purpose of this article is to synthesize the topics, conceptualizations and measurements of value-based management (VBM) and to suggest a research agenda covering its next…

Abstract

Purpose

The purpose of this article is to synthesize the topics, conceptualizations and measurements of value-based management (VBM) and to suggest a research agenda covering its next evolution as sustainable governance.

Design/methodology/approach

The authors conducted a systematic literature review of 80 seminal studies published between 1979 and 2022. The authors synthesized the studies by their conceptualizations of VBM in an inductively developed framework.

Findings

The authors find that scholars explore diverse topics related to VBM with a prevailing focus on shareholder primacy. There is a paucity of studies that focus on the integration of shareholder maximization and stakeholder management practices. The authors explain which studies will form a promising foundation for advanced research on sustainable governance that will reach beyond current VBM research.

Originality/value

The authors' research agenda addresses new future topics on conflicting goals within and between shareholder groups, offers specific suggestions for using new research methods and untapped data sources for VBM and paves the way to substantially extend the boundaries of the firm in VBM research to include stakeholders, strategic alignment and new sustainability measures.

Details

Journal of Accounting Literature, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0737-4607

Keywords

Open Access
Article
Publication date: 9 August 2022

Yassin Denis Bouzzine and Rainer Lueg

The purpose of this paper is to conceptualize how past corporate social responsibility (CSR) affects the occurrence of organizational misconduct by the means of moral licensing.

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Abstract

Purpose

The purpose of this paper is to conceptualize how past corporate social responsibility (CSR) affects the occurrence of organizational misconduct by the means of moral licensing.

Design/methodology/approach

To this end, the authors conduct a conceptual review and develop a framework illustrating how moral credits and moral credentials (moral licensing) may institutionalize irresponsibility and lead to subsequent misconduct.

Findings

The authors propose a conceptual framework that describes the relationship between past CSR and organizational misconduct by the means of moral licensing. Based on initial literature-based findings, this paper provides confirmatory evidence for the authors’ framework and illustrates that past CSR might be used as a moral licensing tool that eventually fosters the occurrence of organizational misconduct.

Research limitations/implications

The authors propose future researchers account for the moral licensing effect when examining the antecedents of misconduct and explore the potential moderators of this effect.

Practical implications

The authors recommend that organizations establish management control systems that specifically address the issue of moral licensing when evaluating CSR initiatives. The authors also propose that organizations should adhere to a consistent CSR strategy that potentially fosters the selection of moral leaders who are not prone to moral licensing.

Originality/value

To the best of the authors’ knowledge, this paper is the first to connect corporate social responsibility, moral licensing and organizational misconduct from a conceptual perspective.

Details

Organization Management Journal, vol. 20 no. 2
Type: Research Article
ISSN: 2753-8567

Keywords

Article
Publication date: 3 July 2017

Søren Halkjær and Rainer Lueg

The purpose of this paper is to analyze how specialization in hospitals affects operational performance, measured by the length of stay and readmission rate. The authors assess a…

1521

Abstract

Purpose

The purpose of this paper is to analyze how specialization in hospitals affects operational performance, measured by the length of stay and readmission rate. The authors assess a public policy change in the Danish healthcare sector from 2011 which required that some hospital services had to be centralized leading to specialization within the merged departments.

Design/methodology/approach

Taking an institutional theory perspective, the authors conduct a natural experiment. The data include 24,694 observations of urological patient treatments from 2010 to 2012.

Findings

The econometric difference-in-difference analysis finds that the readmission rate decreases by approximately four percentage points in the departments affected by the policy change. Contrary to expectations, the length of stay increases by 0.38 days. The authors complement the natural experiment with a mixed-methods approach that includes proprietary data from the management control system of the hospital, public documentation on the policy change, as well as interviews with key informants. These data suggest that operational deficiency is related to the fact that specialization was externally enforced through the public policy change. The authors illustrate how the hospital staff struggle for legitimacy after this policy change, and how cost savings obstructed the specialized department in achieving its goals.

Originality/value

The authors conclude that the usual economies-of-scales-based logic of (higher)volume-(better)outcome studies cannot easily be transferred to specialization in hospitals, unless one accounts for the institutional reason of the specialization.

Details

International Journal of Operations & Production Management, vol. 37 no. 7
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 30 May 2024

Nadja Fugleberg Damtoft, Dennis van Liempd and Rainer Lueg

Researchers and practitioners have recently been interested in corporate sustainability performance (CSP). However, knowledge on measuring CSP is limited. Many CSP-measurements…

Abstract

Purpose

Researchers and practitioners have recently been interested in corporate sustainability performance (CSP). However, knowledge on measuring CSP is limited. Many CSP-measurements are eclectic, without guidance for contextual applications. This paper aims to develop a conceptual framework that categorizes, explains and evaluates measurements based on their accuracy and precision and provides a guideline for their context-specific application.

Design/methodology/approach

The authors conducted a systematic literature review of an initial sample of 1,415 papers.

Findings

The final sample of 74 papers suggested four measurement categories: isolated indicators, indicator frameworks, Sustainability Balanced Scorecards (SBSC) and Sustainability Performance Measurement Systems (SPMS). The analysis reveals that isolated indicators are inaccurate and imprecise, limiting their application to organizations with delimited, specific measurements of parts of CSP due to the risk of a GIGO-effect (i.e. low-quality input will always produce low-quality output). CSP-indicator frameworks are imprecise but accurate, making them applicable to organizations that handle a more significant amount of CSP data. They have a risk of greensplashing, i.e. many indicators not connected to the industry, organization or strategy. In contrast, SBSCs are precise but inaccurate and valuable for organizations desiring a comprehensive strategic management tool with limited capacity to handle sustainability issues. They pose a risk of the streetlight effect, where organisations do not measure relevant indicators but what is easy to measure.

Originality/value

The ideal CSP-measurement was identified as SPMSs, which are both precise and accurate. SPMSs are useful for organizations with complex, comprehensive, connected and tailored indicators but are methodologically challenging.

Details

Journal of Global Responsibility, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2041-2568

Keywords

Article
Publication date: 1 February 2016

Klarissa Lueg, Rainer Lueg, Karina Andersen and Veronica Dancianu

The purpose of this paper is to illustrate how standards and guidelines for corporate social responsibility (CSR) can help a company in its integrated reporting (IR). The authors…

4240

Abstract

Purpose

The purpose of this paper is to illustrate how standards and guidelines for corporate social responsibility (CSR) can help a company in its integrated reporting (IR). The authors investigate the motivations of diverse stakeholders (including shareholders) in fostering the adoption of standards and guidelines for CSR after IR became mandatory in Denmark.

Design/methodology/approach

The authors conduct a case study at the Danish carpet manufacturer EGE. The authors interpret the case from the perspective of pragmatic constructivism, which focuses on the integration of four dimensions: facts, possibilities, values, and communication.

Findings

The authors find that the family-owned EGE follows a strategy of “enlightened shareholder value,” in which CSR is an essential value driver. This strategy fostered IR with guidelines and standards for CSR. The CSR practices appeared to be helpful for integrating measureable plans to the strategy and for controlling CSR implementation. However, the long and technical CSR reports did not effectively communicate EGE’s values and possibilities. The authors outline how EGE overcame these barriers.

Originality/value

The authors suggest that IR implementation depends on the context, and the authors explain why the case company has opted to issue two separate reports for their IR. In addition, the authors suggest that standardized approaches to CSR may be suitable for internal planning and control purposes; however, companies must go beyond these measurements to achieve IR.

Details

Corporate Communications: An International Journal, vol. 21 no. 1
Type: Research Article
ISSN: 1356-3289

Keywords

Article
Publication date: 20 April 2015

Rainer Lueg

The purpose of this paper is to show how the use of Strategy Maps substantially improves the implementation success of balanced scorecards (BSC). The BSC is supposed to translate…

6905

Abstract

Purpose

The purpose of this paper is to show how the use of Strategy Maps substantially improves the implementation success of balanced scorecards (BSC). The BSC is supposed to translate strategy into action. Strategy maps support this by showing cause-and-effect chains. But what does this mean for strategy execution in practice? To achieve better BSC implementations, the author uncovers pitfalls and names the remedies.

Design/methodology/approach

The author summarizes the most important findings from initially over 1,000 studies that have dealt with the BSC from 1992 to 2012.

Findings

BSC implementations that use a sophisticated Strategy Map appear to be successful. Strategy maps foster a better understanding of the BSC among employees, create greater commitment and less resistance and are superior to the BSC itself in communicating how to achieve strategic goals. Also, strategy maps facilitate managers’ evaluation of the relevant environment. Nevertheless, the common measure bias is a usual pitfall: top managers have a tendency to use their own strategic targets as a yardstick for lower-level employees.

Originality/value

This paper helps managers understand the most recent developments on strategy maps. In particular, the author highlights that causalities do not exist in organizations in the same way as there are “laws” in physics. Instead, organizations need to customize their BSC to their way of doing business.

Article
Publication date: 28 October 2014

Oana Alexandra Albertsen and Rainer Lueg

This paper aims to review the literature on the balanced scorecard (BSC) system. The BSC may well be one of the most popular performance measurement systems, but this is not…

3538

Abstract

Purpose

This paper aims to review the literature on the balanced scorecard (BSC) system. The BSC may well be one of the most popular performance measurement systems, but this is not synonymous with successful. The inventors of the BSC, Kaplan and Norton, actually emphasize that a BSC can only really impact the organizational performance if it is linked to the actors’ intrinsic and extrinsic incentives. As BSC has existed for more than 20 years, the authors find it relevant to survey the extant literature which elaborates on the BSC-incentives link within organizations.

Design/methodology/approach

This paper identifies 117 empirical studies from leading academic journals published between 1992 and 2012 and then assesses 30 of these studies, which present the BSC-compensation link within the BSC literature. The authors analyze both research design (authors’ perspective) and the actual findings in the field (organizations’ perspective).

Findings

First, it was found that only 30 of 117 empirical studies have a research design that is comprehensive enough to capture a full BSC as suggested by Kaplan and Norton, and only six of these studies elaborate on the link between the BSC and compensation. Second, extant research lacks valid constructs for the BSC and focuses too much on planning (ex-ante) with the BSC and not sufficiently on evaluation and control (ex-post). Third, the authors demonstrate that empirical BSC literature relies very strongly on field research in small and medium enterprises compared to similar research. Overall, the authors claim that the “relevance” of the BSC remains unproven.

Originality/value

The authors synthesize the empirical BSC literature and derive a future research agenda.

Details

Journal of Accounting & Organizational Change, vol. 10 no. 4
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 13 July 2015

Anders P. Haubro, Henrik A. Lomholt, Rainer Lueg, Sverre V. Nielsen and Ulrik Knudsen

– The purpose of this paper is to explain how tactical choices create value within a business model of a small company in the fashion outlet industry.

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Abstract

Purpose

The purpose of this paper is to explain how tactical choices create value within a business model of a small company in the fashion outlet industry.

Design/methodology/approach

The generic two-staged competitive process framework from Casadesus-Masanell is used to analyze the fashion retailer MyFashionOutlet.

Findings

This paper argues that tactical choices made within a business model have a positive effect on the revenue of this company.

Originality/value

As to practice, the findings provide better insights into the levers of change within a constant business model. For academics, the authors provide guidelines for applying the framework to future research and identify potential limitations of the use.

Details

Journal of Fashion Marketing and Management, vol. 19 no. 3
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 28 October 2014

Morten Jakobsen and Rainer Lueg

This paper aims to analyse how the inherent design of the Balanced Scorecard (BSC) violates the controllability principle. The management control literature provides convincing…

1964

Abstract

Purpose

This paper aims to analyse how the inherent design of the Balanced Scorecard (BSC) violates the controllability principle. The management control literature provides convincing examples of actors who breach controllability without intention. This discussion was extended by the example of the BSC. This paper focusses on the breaches that occur when actors lack the awareness or the skills to re-enforce controllability.

Design/methodology/approach

Taking a pragmatic-constructivist position, analytical and empirical evidence was included on controllability to analyse the normative literature on the BSC.

Findings

It was found that the BSC causes several unintended breaches of the controllability principle at the level of middle managers, both ex ante (control rationale) and ex post (fairness rationale). These breaches are not only situational or induced by how managers in the field design a BSC. They appear to be inherent in the BSC due to the way Kaplan and Norton have conceptualised it.

Practical implications

Practitioners are alerted that the intuitive appeal of popular management fashions such as the BSC covers their conceptual flaws. It was also proposed that failed implementations and dysfunctional applications can be due to the inherent characteristics of the concepts themselves.

Originality/value

This paper contributes by uncovering the unintended violations of the controllability principle by the inherent characteristics. The authors suggest using our conceptual contribution to conduct empirical research on the issues of controllability and management control systems in general. Thereby, the theory-based discussion on the BSC is advanced (Nørreklit, 2000, 2003; Nørreklit et al., 2012a).

Details

Journal of Accounting & Organizational Change, vol. 10 no. 4
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 1 June 2023

Victor Daniel-Vasconcelos, Vicente Lima Crisóstomo and Maisa de Souza Ribeiro

This study aims to investigate the association between board diversity and systematic risk. The theoretical framework used in this study is based on agency and resource…

Abstract

Purpose

This study aims to investigate the association between board diversity and systematic risk. The theoretical framework used in this study is based on agency and resource dependency theories.

Design/methodology/approach

Using a panel data set of 788 firms listed in the Morgan Stanley Capital International (MSCI) Emerging Markets index from 2015 to 2020, the authors apply Panel-Corrected Standard Error estimation method to test the three proposed hypotheses and the two-stage least squares method is adopted for the endogenous test.

Findings

The results suggest that board-specific skills diversity (BSSD) and board independence (BIND) have a negative impact on systematic risk. On the other hand, board gender diversity does not affect systematic risk. The findings reinforce the relevance of board diversity for reducing systematic risk and offer valuable insights for policymakers and investors, suggesting that the presence of directors with specific skills and independent directors could reduce firms’ systematic risk.

Research limitations/implications

The study extends the scope of agency and resource dependency theories by suggesting that the BSSD and BIND reduce agency costs and bring critical resources to the firm’s survival.

Practical implications

The findings support policymakers and managers in reducing systematic risk. In addition, the results demonstrate the importance of policies that encourage board diversity and BIND.

Social implications

The study demonstrates how companies can reduce systematic risk through board diversity and BIND.

Originality/value

To the best of our knowledge, this is the first study to investigate the association between board diversity and systematic risk only in emerging markets.

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