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Management Control and Business Model Innovation in the Context of a Circular Economy in the Dutch Construction Industry

Author

Listed:
  • Henk Ruiter

    (School of Financial and Economic Management, HAN University of Applied Sciences, 6826 CC Arnhem, The Netherlands)

  • Frank De Feijter

    (School of Financial and Economic Management, HAN University of Applied Sciences, 6826 CC Arnhem, The Netherlands)

  • Koos Wagensveld

    (School of Financial and Economic Management, HAN University of Applied Sciences, 6826 CC Arnhem, The Netherlands)

Abstract

This study explores how different forms of management control support and enable business model innovation in the context of the principles of the circular economy. Following a qualitative research approach, empirical data is collected from construction companies and governmental organizations in the Netherlands. Building on Simons’ four levers of control. This paper illustrates how to balance the intended and emergent strategies via the organization’s management control system. According to Simons, the four levers encompass the beliefs systems, the interactive control systems, the diagnostic control systems, and the boundary controls. The empirical findings uncover the beliefs systems and the interactive control systems to be the most relevant levers that enable and drive business model innovation striving for the effective use of materials. Rather than measuring the output with predefined performance indicators, business model innovation in this context is better served by diagnostic controls which evaluate how innovative business models contribute to the organization’s mission.

Suggested Citation

  • Henk Ruiter & Frank De Feijter & Koos Wagensveld, 2021. "Management Control and Business Model Innovation in the Context of a Circular Economy in the Dutch Construction Industry," Sustainability, MDPI, vol. 14(1), pages 1-18, December.
    • Handle: RePEc:gam:jsusta:v:14:y:2021:i:1:p:366-:d:714287
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    References listed on IDEAS

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    1. Laura Carraresi & Stefanie Bröring, 2021. "How does business model redesign foster resilience in emerging circular value chains?," Post-Print hal-03267359, HAL.
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    Cited by:

    1. Priyadarshini Das & Amer A. Hijazi & Duncan W. Maxwell & Robert C. Moehler, 2023. "Can Business Models Facilitate Strategic Transformation in Construction Firms? A Systematic Review and Research Agenda," Sustainability, MDPI, vol. 15(17), pages 1-20, August.
    2. Cyrine Mrad & Luís Frölén Ribeiro, 2022. "A Review of Europe’s Circular Economy in the Building Sector," Sustainability, MDPI, vol. 14(21), pages 1-19, October.

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