How new top managers use control systems as levers of strategic renewal

This research is a longitudinal study of 10 newly-appointed top managers; the research focuses on understanding (1) their business vision and strategy and (2) how they use formal control systems as levers of strategic change and renewal. The results reported in the paper are based on data collected over a period of approximately 18 months following the appointment of each new manager. Analysis of the data suggests that control systems are important levers used to manage both evolutionary and revolutionary change. In situations of strategic change, control systems are used by top managers to formalize beliefs, set boundaries on acceptable strategic behavior, define and measure critical performance variables, and motivate debate and discussion about strategic uncertainties. In addition to traditional measuring and monitoring functions, control systems are used by top managers to overcome organizational inertia; communicate new strategic agendas; establish implementation timetables and targets; and ensure continuing attention to new strategic initiatives.     

SBU strategy and performance: The moderating effects of the corporate-SBU relationship

This study suggests that the link between an SBU strategy and performance is moderated by the SBU's relationship with corporate management. Information processing arguments suggest that this relationship, typically characterized by general measures of centralization, has been inappropriately conceptualized in prior research. An alternative view, one that considers which decisions and activities should be controlled by the individual SBU, is proposed and tested. The results of a study of 496 SBUs indicate that SBU performance is enhanced when: (1) SBUs with an external strategic orientation control environmental monitoring activities and strategic decision analysis, and (2) SBUs with an intraorganizational orientation control those activities relating to operations. Weaker SBU performance is associated with SBU control over those functions and activities not central to the SBU's business strategy. Therefore, it is suggested that the corporate-SBU relationship can either facilitate or inhibit the implementation of the SBU's intended strategy.     

ICT-enabled system innovations in public services: Experiences from intelligent transport systems

Public transport is confronted with major challenges such as climate change and congestion. This paper discusses how these major challenges are addressed by means of ICT-enabled system innovations in public services. Recent developments in ICT enable the realisation of novel solutions for public transport that can be subsumed under the headline of intelligent transport systems (ITS). However, while the advances in information and communication technology are very fast, the transformation of transport systems and infrastructures tends to take a long time. In parallel, public sector reforms of the past decade, often characterised by the introduction of New Public Management principles, have changed the organisational and institutional conditions for transport service provision and innovation, with the private sector playing an increasingly prominent role. Public–private innovation networks in services (ServPPINs) have been suggested as a concept to foster the realisation of system innovations.This paper analyses the conditions, determinants and instruments for managing ServPPINs successfully, by comparing four cases of ServPPINs in intelligent transport systems, which all aim at establishing system innovations. The four cases are: ITS Vienna Region, a dynamic intermodal traffic information service; compano, a novel ride-sharing scheme in Austria; SIS, a real-time traffic information services, displays and management system in Oslo; and Flexus, an electronic ticket system for public transportation in Oslo.The paper shows the importance of organisational and institutional conditions of ServPPINs for realising these system innovations, and the crucial role of entrepreneurial individuals, both in public and private sector organisations. It also points to the importance of making clear strategic choices at the right moments in time in the course of the life-cycle of ServPPINs.     

AN EMPIRICAL TEST OF THE RESOURCE-BASED THEORY: STRATEGIC REGULATION IN THE DUTCH AUDIT INDUSTRY

The resource-based view of the firm is a recent strategic management theory that seeks to identify the resources that may provide firms with a sustainable competitive advantage. This paper has two purposes. First, the paper relates strategic management arguments to parallel lines of reasoning in industrial organization theory and argues that strategic regulation is a major source of sustainable competitive advantage. The second purpose of the paper is to report the results of an empirical test of the resource-based theory on the basis of a longitudinal data set on the postwar history of the Dutch audit industry. A key determinant of this history proves to be strategic regulation, which stimulates demand for audit services and protects rent-producing resources.     

台湾与内地会计法规多维比较及其协调对策

曾作为亚洲经济“四小龙”之一的中国台湾地区有着比较独特完备的会计法规制度体系，对我国大陆的会计法规建设与制度完善有借鉴价值。为加快推进中国内地和台湾会计法规制度的区际化协调，作者将从会计法规特点与环境要素等多视角入手，通过两地会计法规比较分析，提出立足于国情，为建立与健全具有鲜明特色的中国会计法规体系的一些策略建议。     

我国应对气候变化面临的形势分析及战略选择建议

基于对我国应对气候变化面临形势和世界主要国家应对气候变化策略的分析,阐述了我国应当把低碳发展作为应对气候变化策略的原因,提出了我国促进低碳发展战略的指导思想、战略目标,以及建设节约型社会、构建低碳型国民经济体系、构建低碳型消费模式和构建符合低碳发展要求的政府宏观调控体系等战略重点,进一步分析提出了完善节能减排约束性指标体系、尽快攻克煤炭清洁发电关键技术、以发展循环经济为抓手促进绿色经济发展等战略措施选择。     

ERP system usage: the role of control and empowerment

Organisations have made significant investments in enterprise resource planning (ERP) systems with the strategic expectation that employees will utilise this technology to enhance organisational performance. However, research indicates that ERP systems are underutilised. In order to disentangle the challenge of underutilisation, this paper addresses the impact of organisational control and empowerment on infusion—the deep and comprehensive usage of an information system. Moreover, it also tests whether infusion will lead to higher levels of ERP system success. Data from a sample of 260 matched pairs of ERP system users and their supervisors were collected and analysed. Results indicate that empowerment is positively related with infusion, whereas an inverted u‐relationship has been found for organisational control. The critical link between infusion and ERP system success was found as well, meaning that the more users utilise the system to its fullest extent, the more likely the organisation is to attain ERP systems' promised benefits.     

Using rewards in implementing strategy

Corporations often find it difficult to carry out their strategies because they have executive compensation systems that measure and reward performance in a way that ignores or even frustrates strategic thinking, planning, and action. In particular, reward systems rarely emphasize the long run adequately, nor are they well coordinated with the methods and objectives of other management systems. This article describes three methods that can be used to match rewards with accomplishment of strategic goals: the weighted-factor method which weights various performance measurements according to strategic objectives, the long-term evaluation method, which ties compensation to goals achieved over a multiyear period, and the strategic funds deferral method which varies from the conventional financial accounting model for the measurement of performance. The article recommends that all three methods be combined into a single system in which the rewards for senior managers throughout the company are determined by the three methods in different proportions according to those factors that constitute successful performance in their positions.     

Crafting successful strategic technology partnerships

Despite the trend towards an increasing use of strategic technology alliances, mortality rates of cooperative agreements have always been extremely high. In this paper we argue that rapid economic and technological developments have overthrown traditional thinking about alliances and that firms could benefit from a new perspective on partnering. This new approach is referred to as High Touch Partnering. The new framework stresses the need for a balanced attention to strategic (re-)positioning, establishing adequate alliance capabilities, building business communities with partners and improved partner selection.     

Strategic planning in a turbulent environment: evidence from the oil majors

The long‐running debate between the ‘rational design’ and ‘emergent process’ schools of strategy formation has involved caricatures of firms' strategic planning processes, but little empirical evidence of whether and how companies plan. Despite the presumption that environmental turbulence renders conventional strategic planning all but impossible, the evidence from the corporate sector suggests that reports of the demise of strategic planning are greatly exaggerated. The goal of this paper is to fill this empirical gap by describing the characteristics of the strategic planning systems of multinational, multibusiness companies faced with volatile, unpredictable business environments. In‐depth case studies of the planning systems of eight of the world's largest oil companies identified fundamental changes in the nature and role of strategic planning since the end of the 1970s. The findings point to a possible reconciliation of ‘design’ and ‘process’ approaches to strategy formulation. The study pointed to a process of planned emergence in which strategic planning systems provided a mechanism for coordinating decentralized strategy formulation within a structure of demanding performance targets and clear corporate guidelines. The study shows that these planning systems fostered adaptation and responsiveness, but showed limited innovation and analytical sophistication. Copyright © 2003 John Wiley & Sons, Ltd.     

Choice,chance, and inevitability in strategy

We propose a theory to manage the uneasy relation between strategic choice, chance, and determinism (or inevitability). To do so, we locate arguments in intellectual history that have a clear bearing on this relation. We introduce and defend four conjectures that outline the relationship between each of them and their comparative significance. The paper thus aims at achieving three objectives: (a) to articulate a philosophically sustainable theory of strategic choice that corroborates experience (without being induced by it); (b) to synthesize what remains one of the most sustained debates in strategy, namely the nature, role, and relation of choice, chance and determinism; and (c) to contribute to developing a foundation for multilevel research. Copyright © 2007 John Wiley & Sons, Ltd.     

The choice of organizational form: Vertical financial ownership versus other methods of vertical integration

Vertical integration is a fundamental corporate strategy of interest to the fields of strategic management and organizational economics. This paper synthesizes theoretical arguments and empirical findings from this literature to identify the underlying advantages and disadvantages of choosing vertical financial ownership relative to vertical contracts. It then suggests that in the absence of agency and transaction costs, vertical financial ownership and vertical contracting are equivalent governance structures for achieving corporate objectives. However, given a world of positive agency and transaction costs, the key theoretic question then becomes predicting when market mechanisms are sufficient, when intermediate forms of vertical contracting become necessary, and when vertical financial ownership becomes the preferred governance structure. The concluding section of the paper provides a framework for making this analysis based on a synthesis of agency and transaction costs perspectives.     

Strategic orientation and top management attention to control systems

Management control systems are viewed typically as management-by-exception tools for implementing intended strategies. This study provides a different perspective by focusing on the way that top managers use specific control systems to focus organizational attention on strategic uncertainties and thereby guide the development of new strategic initiatives. Analysis of field-based data from 30 businesses in the U.S. health care products industry is used to develop a model and propositions that distinguish between interactive and diagnostic control systems, and illustrate the selective use of these systems in different strategic contexts.     

Growth strategies for service firms

Two characteristics of services—intangibility of the offering and simultaneity of production and consumption—have important implications for strategic planning. Four of these implications are described. Life cycle, experience, and market share, which are the usual determinants of profitability that provide guides for strategic planning are not easily applied to the service firm. Therefore growth strategies need to be revised. In its second part the paper suggests alternative growth strategy paths for service firms. It brings forward three main remarks. First, the service firm should not overuse its delivery system and its image by attempting to serve the needs of too many sociodemographic segments. Second, service development and concentric diversification are not sequential choices; the latter is not so distant from the former as may be commonly perceived. Third, expansion to out-of-country markets represents a risk discontinuity; it should be approached by service firms with considerable flexibility and willingness to interact with different cultures.     

The evolution of a cellular manufacturing system – a longitudinal case study

This paper describes the evolution of a cellular manufacturing system in a medium-sized company over a 13-year period. The objective of this paper is to analyze the arguments that gave rise to the nearly continuous readjustment of the design of the cellular manufacturing system of this company and the direction in which these adjustments took place. The study indicates that two interrelated factors played an important role in the decision to change the system: the market and manufacturing technology. Analysis of these factors offers important insights into the aspects that need to be taken into account in cell formation. It is argued that a cellular system should reflect market characteristics. New technology, furthermore, demands specialized cells, producing in a multi-shift situation. These two developments point in the direction of market-oriented, reasonably sized, functionally organized manufacturing units. It is argued that market developments, new manufacturing technology and modern production control systems will probably constrain the application area of cellular manufacturing.     

Advocates, Critics and Union Involvement in Workplace Partnership: Irish Airports

The Irish Airports Authority and its unions have developed a radical partnership initiative which seeks to involve staff and unions in operational and strategic decision–making. The initiative allows for an empirical assessment of arguments regarding the effects of partnership on union organization and strength, and on members' commitment to unions. Drawing on research conducted over a four–year period, we argue that partnership was of considerable benefit to workers and unions, but that new tensions and challenges have arisen. On balance, the evidence provides modest support for the theoretical arguments of advocates of partnership.     

Linking of Manufacturing Strategy,Market Requirements and Manufacturing Attributes In Technology Choice: An Expert System Approach

This paper suggests a framework for acquisition of new manufacturing technology that links the manufacturing strategy, market requirements and manufacturing attributes using an expert system approach. This paper takes a closer took at traditional notion of manufacturing-marketing coordination and attempts to find its links with manufacturing capabilities provided by recent evolving new manufacturing technology. For this purpose we deal with different steps involved in the strategic evaluation process beginning with the choice of a suitable competitive strategy by a firm. Then the chosen competitive strategy is linked with the market requirements, system attributes and appropriate manufacturing technology choices. The proposed model is integrated by an expert system approach that includes strategic factors of both a tangible and an intangible nature and is implemented by using the VP-Expert shell.     

DEVELOPING A BUSINESS PERFORMANCE EVALUATION SYSTEM: AN ANALYTIC HIERARCHICAL MODEL

A good business performance measurement system is a very effective tool to motivate and monitor employees of a company. Although interest in creating performance measurement models is widespread, a well-designed system is rare. To be successful in today's competitive environment, a good performance measurement systems should incorporate strategic success factors. The model proposed in this study uses a three-level hierarchical schema to combine financial and nonfinancial performance measures and emphasizes external as well as internal business performance measures. In comparison with previous methods, such a method is more likely to cover a broader set of measures that include operational as well as strategic control. A prototype based on the analytic hierarchical model can be applied to other business situations.     

Improving firm positioning through enhanced offerings and buyer-seller relationships

We analyze the strategic repositioning of firms through changes in their market offerings and buyer-seller relationships. Based on literature from strategy, marketing, economics, and information systems, we formulate a two-by-two matrix to examine alternatives for positioning. We evaluate the framework with four case studies of companies that have recently moved toward more complete product/service offerings and stronger relational linkages with customers. These moves followed two different paths. The product/service path initially focused on the development of new and related products, product bundles, and the addition of product-related services. The relational path first focused on establishing closer relationships with customers including closer operational linkages, enhanced information sharing, more fully articulated legal and contractual obligations, and enhanced cooperation. In all the cases, the strategic repositioning was influenced by customer needs and enabled by information technology and the acquisition of new competencies through networking.     

Practical framework for strategic alliance in Pearl River Delta manufacturing supply chain: A total quality approach

Supply chain management becomes one of the most powerful business concepts for organizations to gain a competitive advantage in the global market. Strategic alliance could enhance the performance of a global supply chain. This paper identifies three phases for strategic alliance, and proposes a practical framework for Pearl River Delta (PRD) manufacturing companies to develop a strategic partnership with their critical suppliers, by adopting total quality philosophies approach. Finally, this paper provides some critical factors for PRD manufacturing companies forming a supply network within PRD region through establishing strategic alliance.