Strategy, Control and Competitive Advantage: Case Study Evidence

276 Pages·2014·3.469 MB·English

by  Erik Jannesson, Fredrik Nilsson, Birger Rapp (auth.), Erik Jannesson, Fredrik Nilsson, Birger Rapp (eds.)

Management for Professionals
Erik Jannesson
Fredrik Nilsson
Birger Rapp Editors
Strategy,
Control and
Competitive
Advantage
Case Study Evidence
Management for Professionals
Forfurther volumes:
http://www.springer.com/series/10101
ThiSisaFMBlankPage
Erik Jannesson (cid:129) Fredrik Nilsson (cid:129) Birger Rapp
Editors
Strategy, Control and
Competitive Advantage
Case Study Evidence
Editors
ErikJannesson FredrikNilsson
DepartmentofManagementandEngineering DepartmentofBusinessStudies
Linko¨pingUniversity UppsalaUniversity
Linko¨ping Uppsala
Sweden Sweden
BirgerRapp
InstituteforManagementofInnovation
andTechnology,Gothenburg
Ljustero¨
Sweden
ISSN2192-8096 ISSN2192-810X(electronic)
ISBN978-3-642-39133-0 ISBN978-3-642-39134-7(eBook)
DOI10.1007/978-3-642-39134-7
SpringerHeidelbergNewYorkDordrechtLondon
LibraryofCongressControlNumber:2013950053
#Springer-VerlagBerlinHeidelberg2014
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Preface
Forquitesometime,theareaknownasstrategyandmanagementcontrolhasbeen
ofconsiderableinteresttoresearchersandpractitioners.Somewhatsimplified,this
subjectconcernshowthecontrolsystemsoffirmsshouldbedesignedandusedin
order to formulate and implement strategies that contribute to competitive advan-
tage and sustained high performance. Since each firm is unique, strategies and
controlsystemsmustalsobeunique.Firmsthatsucceedinestablishingcontroland
formulating strategies that are internally consistent, while also appropriate to the
environmentinwhichthefirmoperates,aremorecompetitivethanthosewherethis
isnotthecase.
Substantial research resources have long been devoted to identifying interrela-
tionships in this area. Many articles, book chapters and entire books replete with
valuableknowledgeonthesubjecthavebeenpublished.However,thereisalsoan
abundanceofambiguousandcontradictoryfindings,notleastbecausemanystudies
explore these relationships at a single point in time. It is also common for the
researchdesigntocoveronlyonestrategiclevel(corporate,businessorfunctional
level). In addition, almost all studies focus on a limited part of a control system,
despite the existence of several control systems which should be interrelated and
thusaffecteachother.Thereisthusagreatneedforresearchwithaholisticpointof
departure, that is, research on the relationship between strategy, control and com-
petitiveadvantageoverextendedperiodsandatseveralstrategiclevels,whilealso
takingintoaccounttheexistenceofseveralcontrolsystemsinasinglefirm.
This book reports on research with precisely this orientation. With one excep-
tion,thestudiespresentedinthebookarebasedonresearchconductedindoctoral
thesisprojects.Withoutadoubt,thesestudiesareuniqueinbothextentandfocus,
andtheyprovidehighlyvaluablecontributionstotheresearchareaofstrategyand
management control. They represent a considerable effort in regard to resources
andinvolvementoveranextendedperiod.Moreover,allthefirmsandorganizations
presentedareinterestingandexciting,eachwithafascinatinghistory.Thereaderis
givenanin-depthlookintohowchangesintheenvironmentleadtoadjustmentsin
strategiesandcontrolsystems.Itisalsoclearhowdifficultandchallengingitisto
implement these changes and why such efforts are not always successful. But
perhapsmostimportantly,thebookconveysin-depthknowledgeandunderstanding
of how strategies and control systems affect competitive advantage and
performance.
v
vi Preface
This book is a consolidation of the research mentioned above, but it is not an
ending.Wewillcontinuewithresearchonstrategies,controlsystemsandcompeti-
tiveadvantage.Wearethereforeinterestedinyourfeedbackonthecontentofthe
bookandnaturallyonanypointsthatareunclearandonanyomissions.Information
onhowtoreachuscanbefoundintheIntroductiontothebook.
Finally, we wish to thank the authors of the respective chapters for fruitful
collaboration. In addition, we are deeply grateful to Associate Professor Adri de
Ridder, who prepared the financial data presented in the Appendix. We wish to
thank the Jan Wallander and Tom Hedelius Foundation, as well as the Tore
Browaldh foundation, for providing part of the financing for this book project.
Financial support was also received from the Institute for Management of
InnovationandTechnology(IMIT)andtheSwedishResearchSchoolofManage-
ment and Information Technology (MIT). Our thanks go to Dick Wathen and
Donald MacQueen (Chap. 9) for their assistance in editing the language of the
manuscript.
Linko¨ping ErikJannesson
Uppsala FredrikNilsson
Ljustero¨ BirgerRapp
May2013
Contents
1 IntroductiontotheCases:Theories,ConceptsandModels . . . . . . . 1
ErikJannesson,FredrikNilsson,andBirgerRapp
2 DrivingStrategicChangeatSaabAB:TheUseofNewControl
Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
ErikJannesson
3 HowManagementControlAffectstheImplementation
ofStrategiesinaDecentralizedOrganization:Focuson
FormalandInformalControlintheCaseofAtlasCopco . . . . . . . . 59
KlasSundberg
4 SuccessThroughConsistentStrategy:HowDoesScania’s
ManagementControlMatter? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Nils-Go¨ranOlve
5 ChangingStrategiesandControlSystemsataGermanInsurance
Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
SusannaPoth
6 Strategy,ManagementControlandOrganizationalDesign:
EmpiricalIllustrationsfromSCAPackaging . . . . . . . . . . . . . . . . . . 139
KatarzynaCieslak
7 LinkingStrategyandInter-organizationalRelationships:
TheCaseofVolvoandScania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
ZitaAmbrutyte˙
8 TheRoleofITSystemsintheStrategyProcess:
TheCaseofElectrolux . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
FredrikNilssonandJanLindvall
9 Funding,StrategiesandManagementControlSystems:
EmpiricalEvidencefromTwoChamberOrchestras . . . . . . . . . . . . 213
FredrikNilssonandAnna-KarinStockenstrand
vii
viii Contents
10 ConclusionsandImplications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
ErikJannesson,FredrikNilsson,andBirgerRapp
Appendix:ChoicesofMethod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
About the Authors
Zita Ambrutyte˙ is currently a management consultant in the Mergers and
Acquisitions sector as well as on investment-related Lithuanian governmental
projects.SheisalsoaVisitingLecturerinManagementControlandothersubjects
at the International BusinessSchool of Vilnius Universityand with the Executive
ProgrammeoftheInternationalSchoolofManagementinVilnius,Lithuania.
Katarzyna Cieslak is Acting Assistant Professor in the Department of Business
Studies at Uppsala University. Her PhD thesis was on the role of controllers in
organizations and the impact of organizational context on this role. Her research
concerns the interplay between management control and IT in organizations, as
wellasissuesofcorporategovernance,withafocusonexecutivecompensation.
Erik Jannesson is Assistant Professor in Economic Information Systems at
Linko¨ping University. His research is focused on strategic management control,
in particular the relationship between strategy and management control on and
betweendifferentlevelsinlargeorganizations.Asaresearcherandconsultant,heis
alsointerestedinquestionsregardingmanagementcontrolandvaluecreationfrom
asustainabilityperspective.
Jan Lindvall is Associate Professor in the Department of Business Studies at
Uppsala University, where he conducts research and teaches management control
relatedtoIT.Heisespeciallyinterestedinhownewtechnology,suchasEnterprise
Resource Planning (ERP) systems and Business Intelligence, can influence trans-
parency,accountabilityandmotivationinglobalcompanies.
FredrikNilssonwasappointedProfessorofBusinessStudies,especiallyaccounting,
atUppsalaUniversityin2010.Previously,hewasProfessorofEconomicInforma-
tion Systems at Linko¨ping University and Institute of Technology. His research
focuses on how information systems (e.g. management control systems, financial
accounting systems and production control systems) are designed and used to
formulateandimplementstrategies.
Nils-Go¨ranOlveisAdjunctProfessoratLinko¨pingUniversityandGuestProfessor
at Uppsala University. He is also a consultant and author of numerous books on
managementcontrolandcontrollers–inparticularhowtheyandnewformsofIT
ix