Leif Christensen, Pall Rikhardsson, Carsten Rohde and Catherine Elisabet Batt
This paper aims to explore and explain how administrative controls have been changed as a response to a significant crisis, using the transition of the three largest Icelandic…
Abstract
Purpose
This paper aims to explore and explain how administrative controls have been changed as a response to a significant crisis, using the transition of the three largest Icelandic banks from bankrupt to operational entities after the 2008 financial crisis. The Icelandic banks are compared with three Danish banks to separate crisis-driven responses from simple market-driven reactions.
Design/methodology/approach
Empirical data were collected using semi-structured interviews. The participating Icelandic and Danish banks were considered as two units, which formed the basis for a comparative case study between the two countries.
Findings
Driven by an understanding of what is expected by the market rather than the need to inform and guide the employees the Icelandic banks implemented a number of revolutionary and formally documented changes. These changes included significant bigger risk management functions and policies and procedures documenting “everything”. However, in both countries, it seems that new values supported by the “tone at the top”, areas with limited formal documentation, are the most important management tools.
Research limitations/implications
The study relies on interviews with employees, and the actual changes of administrative controls have not been reviewed. The most important implication is that the situated logics in Iceland driven by external institutional pressure initiated a revolutionary implementation of values bypassing existing routines and formalised rules.
Originality/value
Although the use of management controls has been studied intensively, detailed studies of the banking sector have been lacking. Furthermore, there is limited knowledge of how administrative controls changed in response to the financial crisis.
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Pall Rikhardsson, Carsten Rohde, Leif Christensen and Catherine E. Batt
This paper investigates the use of management controls when environmental uncertainty and hostility increase abruptly. Specifically, it explores this in the context of the 2008…
Abstract
Purpose
This paper investigates the use of management controls when environmental uncertainty and hostility increase abruptly. Specifically, it explores this in the context of the 2008 financial crisis in six banks located in two countries.
Design/methodology/approach
The paper is based on 26 qualitative interviews with selected managers employed by the six banks. Eight interview guides were developed based on the typology of controls in Malmi and Brown (2008). Respondents explained which changes in management controls occurred after the crisis.
Findings
Both organic and mechanistic management controls were mobilized at the same time to deal with the change. The use of controls played three main roles: (1) guide and control behavior, (2) change internal and external perceptions and (3) discharge accountability. Finally, control use during a crisis evolves as individual managers design and implement controls. There is no “grand design” rationally guiding the design of the overall system of controls.
Originality/value
The use of management controls in dealing with an increase in uncertainty and hostility cannot be labeled either organic or mechanistic, but will depend on the specific type of change in environmental characteristics. Management controls evolve by interaction with outside actors, as well as internal techniques.
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Maria Krysfeldt, Jannick Friis Christensen and Thomas Burø
The paper discusses how the management of a sports and fashion company, which we refer to as NULMA, successfully applied the neo/normative control technology “karma organisation”…
Abstract
Purpose
The paper discusses how the management of a sports and fashion company, which we refer to as NULMA, successfully applied the neo/normative control technology “karma organisation” and gained employee engagement. Whereas other studies have documented employee resistance to organisational cultures when used for managerial control, our case demonstrates resistance to management practices that employees find inconsistent with the dominant karma culture.
Design/methodology/approach
The study is based on a six-year longitudinal organisational at-home ethnography conducted by one of the authors using methods of both participant and non-participant observation, semi-structured interviews and collaborative production of secondary data in the case organisation.
Findings
While our research shows that management can successfully apply neo/normative control which employees accept and support, we further show that employees mobilise the same values to resist management when it fails to deliver on the commitments and promises of the organisational culture.
Originality/value
The study contributes to the literature on organisational culture and, in particular, neo/normative control by theorising employee resistance as being by “accident”, by which we mean an inherent negative potentiality co-invented and released by managers establishing a “karma organisation”. Our theorising culminates in a discussion of the study’s implications for research and practice.
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Bo Bergman, Bengt Klefsjö and Lars Sörqvist
The aim of this paper is to investigate the development of the quality movement in Sweden since the mid-20th century. The authors are convinced that a summary of the Swedish…
Abstract
Purpose
The aim of this paper is to investigate the development of the quality movement in Sweden since the mid-20th century. The authors are convinced that a summary of the Swedish quality journey so far will offer important lessons for further quality improvements in Sweden and elsewhere.
Design/methodology/approach
The authors study how the quality movement has been included in the industrial agenda and how it has been adopted in student curricula and in research. The authors have a focus on how business leaders have learnt, adopted, adapted and innovated with respect to quality development. often in collaboration with academia.
Findings
Although the quality movement has fit well with the Swedish culture and that successful corporate leaders have successfully used the specific cultural characteristics there is still a lot to be learnt with respect to the public sector, where the ideas from the quality movement have problem to overcome institutional barriers.
Research limitations/implications
The study is limited to the Swedish context.
Practical implications
There is a serious need to revitalize the public sector by getting leaders and politicians to understand the need for systematic quality improvement.
Social implications
If future Swedish achievements with respect to healthcare and other social welfare elements are to once again become world-class, the public sector needs to be open-minded and collaborate with the industrial sector and academia to find cost-effective strategies for making quality improvements. However, the private sector must also be alert not to be overtaken by some highly active Asian countries.
Originality/value
Swedish large companies have been very successful in applying quality leadership – however, in the public sector, this has not been the case. Suggestions for improvement are made.
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For knowledge exchange systems to yield best organizational benefits, it is acknowledged that employees have to both contribute with and apply system content. This may be of…
Abstract
Purpose
For knowledge exchange systems to yield best organizational benefits, it is acknowledged that employees have to both contribute with and apply system content. This may be of particular importance in distributed environments due to limitations in alternative channels for knowledge exchange. This study investigates the effects of the gap between contribution and application on the degree of knowledge exchange within and between organizational borders and work locations.
Design/methodology/approach
The study is based on survey data involving 2204 respondents from a large petroleum operator company and eight of its main contractors.
Findings
An increase in the gap between contribution and application is accompanied with reduced levels of knowledge exchange between organizational borders and work locations, but has no effects on knowledge exchange between employees of the same organization working at the same location. This is explained by the availability of substitute channels for local knowledge exchange.
Practical implications
Knowledge exchange systems research and practice have to focus on both knowledge contribution and knowledge application as fundamental processes, and should further consider organizational structure as an important factor.
Originality/value
Most research on contribution and application of content in knowledge exchange systems focuses on knowledge exchange within company boundaries. This study systematically investigates the effects of the gap between contribution and application of system content at different levels of organizational distribution, and thus extends existing research by introducing organizational distribution as a conditioning variable for successful knowledge management.
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Leif Atle Beisland and Kjell Henry Knivsflå
The purpose of this paper is to examine how the mandatory shift from Norwegian Generally Accepted Accounting Principles (NGAAP) to International Financial Reporting Standards…
Abstract
Purpose
The purpose of this paper is to examine how the mandatory shift from Norwegian Generally Accepted Accounting Principles (NGAAP) to International Financial Reporting Standards (IFRS) in Norway affected the valuation weights of earnings and book values, with the aim of gaining insights that are relevant for standard setters, investors and other users of accounting information.
Design/methodology/approach
The authors extend the IFRS literature on structural shifts between the pre- and post-adoption periods by comprehensively controlling for factors that vary between the IFRS sample and the domestic Generally Accepted Accounting Principles (GAAP) sample. Moreover, the tests are designed to reveal the underlying accounting causes of the observed differences in value relevance.
Findings
IFRS are balance sheet-oriented and emphasize measurement at fair value. By contrast, NGAAP are earnings-oriented and focus on historical cost. IFRS also differ from NGAAP by recognizing more intangible assets. Overall, IFRS are thus less conservative than NGAAP. It was found that expanded fair value accounting increases the value relevance of book values and decreases the value relevance of earnings. However, the improved matching of intangible asset expenditures with the future economic benefits of such intangible assets increases the persistence and value relevance of earnings relative to book values.
Originality/value
This paper introduces a test methodology that is designed to identify the effects that specific accounting differences between the IFRS sample and the domestic GAAP sample have on value relevance. Consequently, this paper not only identifies the overall effects on value relevance but also contributes to the literature by identifying specific accounting differences between IFRS and GAAP that cause these overall effects, and thus obtain insights that are valuable for standard setters and other users of accounting information.
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Leif Jarle Gressgård, Oscar Amundsen, Tone Merethe Aasen and Kåre Hansen
The purpose of this paper is to investigate how organizations focusing on employee-driven innovation (EDI) use information and communication technologies (ICT)-based tools in…
Abstract
Purpose
The purpose of this paper is to investigate how organizations focusing on employee-driven innovation (EDI) use information and communication technologies (ICT)-based tools in their innovation work. EDI involves systematic exploitation of knowledge resources in organizations. Thus, the role of ICT for efficient knowledge management is important in this respect.
Design/methodology/approach
In-depth interviews with employees, managers and union representatives from 20 organizations focusing on EDI were conducted. The sample included organizations from eight different industries, representing both private and public sectors.
Findings
The results show that ICT-based tools can support the processes of acquisition, dissemination and exploitation of knowledge, which are important aspects of EDI. However, use of ICT-based tools has to be aligned with organizational structures and professional role conduct to be efficient.
Practical implications
This study contributes to practice by highlighting several factors that organizations should emphasize to succeed with application of external and internal knowledge in their innovation work.
Originality/value
This study applies a knowledge management perspective on the role of ICT-based tools to support EDI in organizations. The findings contribute to an improved understanding of organizational conditions for succeeding with use of ICT-based tools in innovation work, and emphasize that perspectives on knowledge management, technology management and human resource management have to be combined to understand how EDI can be promoted by using ICT in organizations.