Integration and Implementation of Sustainability into Practice
(2023) BUSN79 20231Department of Business Administration
- Abstract
- Purpose - This thesis examines MCS in Swedish companies. The purpose of the thesis is to assess
formal and informal controls to understand how companies use them to effectively
integrate a sustainability strategy in their organisation and implement CSR activities into
practice. In this context the study addresses the research question: How do different
leading Swedish companies, in terms of sustainability, use formal and informal controls
to integrate and implement sustainability as a strategy into practice?
Methodology - A qualitative research approach is applied. We follow a multiple-case study approach to
compare how companies use MCS in different stages of the integration and
implementation processes. We collect... (More) - Purpose - This thesis examines MCS in Swedish companies. The purpose of the thesis is to assess
formal and informal controls to understand how companies use them to effectively
integrate a sustainability strategy in their organisation and implement CSR activities into
practice. In this context the study addresses the research question: How do different
leading Swedish companies, in terms of sustainability, use formal and informal controls
to integrate and implement sustainability as a strategy into practice?
Methodology - A qualitative research approach is applied. We follow a multiple-case study approach to
compare how companies use MCS in different stages of the integration and
implementation processes. We collect empirical data by conducting semi-structured
interviews with sustainability leadership positions of Swedish companies.
Theoretical Perspectives - The theoretical framework of this thesis focuses on formal and informal controls for
strategic change. Simons’ (1995) conceptual framework of formal LOC (belief systems,
interactive controls systems, diagnostic control systems, boundary systems), informal
controls as well as coercive and enabling controls introduced by Adler and Borys (1996)
are applied to answer the research question.
Empirical Foundation - The collected empirical data is structured as follows: (i) Integration of the CSR strategy,
(ii) Implementing CSR through belief systems, (iii) Implementing CSR through
interactive control systems, (iv) Implementing CSR through diagnostic control systems,
(v) Implementing CSR through boundary systems, (vi) Comparison of cases.
Conclusions - Our findings emphasise the importance of MCS when integrating a CSR strategy into an
organisation and implementing CSR activities into practice. First, our results indicate that
a CSR strategy is integrated into the overall business strategy and not seen as a separate
strategy. The strategic change to sustainability is considered as an incremental change to
strategy, rather than radical. Second, the case study suggests that MCS are extensively
used by all case companies to implement sustainable strategies, including formal and
informal controls in combination as well as enabling and coercive controls. All LOC are
applied, with a strong focus on belief systems and informal controls as a starting point to
create a strong CSR culture and to get all employees on board. Overall, MCS and their
design are crucial for the successful integration and implementation of a new strategy. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9132059
- author
- Söderlund, Josefin LU and Welter, Christoph LU
- supervisor
-
- Anders Anell LU
- organization
- alternative title
- A multiple-case study of the use of formal and informal controls in Swedish companies to support strategic change
- course
- BUSN79 20231
- year
- 2023
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Sustainability and Corporate Social Responsibility (CSR), Strategic change, Management Control Systems (MCS), Formal and informal controls, Simons’ Levers of Control (LOC)
- language
- English
- id
- 9132059
- date added to LUP
- 2023-09-12 15:35:27
- date last changed
- 2023-09-12 15:35:27
@misc{9132059, abstract = {{Purpose - This thesis examines MCS in Swedish companies. The purpose of the thesis is to assess formal and informal controls to understand how companies use them to effectively integrate a sustainability strategy in their organisation and implement CSR activities into practice. In this context the study addresses the research question: How do different leading Swedish companies, in terms of sustainability, use formal and informal controls to integrate and implement sustainability as a strategy into practice? Methodology - A qualitative research approach is applied. We follow a multiple-case study approach to compare how companies use MCS in different stages of the integration and implementation processes. We collect empirical data by conducting semi-structured interviews with sustainability leadership positions of Swedish companies. Theoretical Perspectives - The theoretical framework of this thesis focuses on formal and informal controls for strategic change. Simons’ (1995) conceptual framework of formal LOC (belief systems, interactive controls systems, diagnostic control systems, boundary systems), informal controls as well as coercive and enabling controls introduced by Adler and Borys (1996) are applied to answer the research question. Empirical Foundation - The collected empirical data is structured as follows: (i) Integration of the CSR strategy, (ii) Implementing CSR through belief systems, (iii) Implementing CSR through interactive control systems, (iv) Implementing CSR through diagnostic control systems, (v) Implementing CSR through boundary systems, (vi) Comparison of cases. Conclusions - Our findings emphasise the importance of MCS when integrating a CSR strategy into an organisation and implementing CSR activities into practice. First, our results indicate that a CSR strategy is integrated into the overall business strategy and not seen as a separate strategy. The strategic change to sustainability is considered as an incremental change to strategy, rather than radical. Second, the case study suggests that MCS are extensively used by all case companies to implement sustainable strategies, including formal and informal controls in combination as well as enabling and coercive controls. All LOC are applied, with a strong focus on belief systems and informal controls as a starting point to create a strong CSR culture and to get all employees on board. Overall, MCS and their design are crucial for the successful integration and implementation of a new strategy.}}, author = {{Söderlund, Josefin and Welter, Christoph}}, language = {{eng}}, note = {{Student Paper}}, title = {{Integration and Implementation of Sustainability into Practice}}, year = {{2023}}, }