IDEAS home Printed from https://ideas.repec.org/a/kap/jmgtgv/v17y2013i1p71-97.html
   My bibliography  Save this article

The impact of organisational alignment on the effectiveness of firms’ sustainability strategic performance measurement systems: an empirical analysis

Author

Listed:
  • Cristiana Parisi

Abstract

Sustainability is becoming a mainstream issue for many organisations. A limited number of studies exist, however, on integrating sustainability into daily practices. Indeed, most of the research to date addresses only the definition and motivation for companies’ interest in environmental and social concerns. This paper contributes to the research on integrating sustainability into companies’ daily activities both directly and indirectly. It analyses the extent to which top management’s commitment to sustainability directly affects structural and social alignment and the effectiveness of measurement systems that monitor sustainability strategic performance and indirectly impacts firms’ social and environmental performance. Based on a quantitative analysis of survey responses from 405 large European companies, this paper documents the limited impact of social alignment to firms’ social and environmental performance. More specifically, the results challenge the diffuse belief that the alignment and commitment of middle managers to sustainability strategies as defined by the upper echelons have a relevant impact on the company’s social and environmental performance. Copyright Springer Science+Business Media, LLC. 2013

Suggested Citation

  • Cristiana Parisi, 2013. "The impact of organisational alignment on the effectiveness of firms’ sustainability strategic performance measurement systems: an empirical analysis," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(1), pages 71-97, February.
    • Handle: RePEc:kap:jmgtgv:v:17:y:2013:i:1:p:71-97
    DOI: 10.1007/s10997-012-9219-4
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10997-012-9219-4
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10997-012-9219-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cho, Charles H. & Roberts, Robin W. & Patten, Dennis M., 2010. "The language of US corporate environmental disclosure," Accounting, Organizations and Society, Elsevier, vol. 35(4), pages 431-443, May.
    2. Zur Shapira, 2000. "Governance in Organizations: A Cognitive Perspective," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 4(1), pages 53-67, March.
    3. Tugrul U. Daim & Edwin Garces & Kelly Waugh, 2009. "Exploring environmental awareness in the electronics manufacturing industry: a source for innovation," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 3(6), pages 670-689.
    4. Baines, Annette & Langfield-Smith, Kim, 2003. "Antecedents to management accounting change: a structural equation approach," Accounting, Organizations and Society, Elsevier, vol. 28(7-8), pages 675-698.
    5. Jeffrey L Kerr & Ellen F. Jackofsky, 1989. "Aligning managers with strategies: Management development versus selection," Strategic Management Journal, Wiley Blackwell, vol. 10(S1), pages 157-170, June.
    6. Franco Cescon, 2002. "Short-term Perceptions, Corporate Governance and the Management of R & D in Italian Companies," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 6(3), pages 255-270, September.
    7. Nicolai Foss, 2001. "Bounded Rationality in the Economics of Organization: Present Use and (Some) Future Possibilities," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 5(3), pages 401-425, September.
    8. Gerdin, Jonas & Greve, Jan, 2004. "Forms of contingency fit in management accounting research--a critical review," Accounting, Organizations and Society, Elsevier, vol. 29(3-4), pages 303-326.
    9. Davila, Tony, 2000. "An empirical study on the drivers of management control systems' design in new product development," Accounting, Organizations and Society, Elsevier, vol. 25(4-5), pages 383-409, May.
    10. Martin Kornberger & Lise Justesen & Jan Mouritsen, 2011. "“When you make manager, we put a big mountain in front of you” : An ethnography of managers in a Big 4 Accounting Firm," Post-Print hal-02276736, HAL.
    11. Morrow, David & Rondinelli, Dennis, 2002. "Adopting Corporate Environmental Management Systems:: Motivations and Results of ISO 14001 and EMAS Certification," European Management Journal, Elsevier, vol. 20(2), pages 159-171, April.
    12. Paolo Perego & Frank Hartmann, 2009. "Aligning Performance Measurement Systems With Strategy: The Case of Environmental Strategy," Abacus, Accounting Foundation, University of Sydney, vol. 45(4), pages 397-428, December.
    13. Carsten Gandenberger & Heiko Garrelts & Diana Wehlau, 2011. "Assessing the Effects of Certification Networks on Sustainable Production and Consumption: The Cases of FLO and FSC," Journal of Consumer Policy, Springer, vol. 34(1), pages 107-126, March.
    14. Philippe Baumard, 1999. "Tacit Knowledge in Organizations," Post-Print hal-03227234, HAL.
    15. Burney, Laurie L. & Henle, Christine A. & Widener, Sally K., 2009. "A path model examining the relations among strategic performance measurement system characteristics, organizational justice, and extra- and in-role performance," Accounting, Organizations and Society, Elsevier, vol. 34(3-4), pages 305-321, April.
    16. Subhabrata Bobby Banerjee, 2001. "Managerial perceptions of corporate environmentalism: interpretations from industry and strategic implications for organizations," Journal of Management Studies, Wiley Blackwell, vol. 38(4), pages 489-513, June.
    17. Eric J. Walton & Sarah Dawson, 2001. "Managers’ Perceptions of Criteria of Organizational Effectiveness," Journal of Management Studies, Wiley Blackwell, vol. 38(2), pages 173-200, March.
    18. Esben Pedersen, 2010. "Modelling CSR: How Managers Understand the Responsibilities of Business Towards Society," Journal of Business Ethics, Springer, vol. 91(2), pages 155-166, January.
    19. Ittner, Christopher D. & Larcker, David F. & Randall, Taylor, 2003. "Performance implications of strategic performance measurement in financial services firms," Accounting, Organizations and Society, Elsevier, vol. 28(7-8), pages 715-741.
    20. Wim Van der Stede, 2003. "The effect of national culture on management control and incentive system design in multi-business firms: evidence of intracorporate isomorphism," European Accounting Review, Taylor & Francis Journals, vol. 12(2), pages 263-285.
    21. Langfield-Smith, Kim, 1997. "Management control systems and strategy: A critical review," Accounting, Organizations and Society, Elsevier, vol. 22(2), pages 207-232, February.
    22. Zabel, Astrid & Roe, Brian, 2009. "Optimal design of pro-conservation incentives," Ecological Economics, Elsevier, vol. 69(1), pages 126-134, November.
    23. Cavalluzzo, Ken S. & Ittner, Christopher D., 2004. "Implementing performance measurement innovations: evidence from government," Accounting, Organizations and Society, Elsevier, vol. 29(3-4), pages 243-267.
    24. Ledyard Tucker & Charles Lewis, 1973. "A reliability coefficient for maximum likelihood factor analysis," Psychometrika, Springer;The Psychometric Society, vol. 38(1), pages 1-10, March.
    25. Nicolai J. Foss, 2001. "Bounded Rationality in the Economics of Organization Present Use and (Some) Future Possibilities," DRUID Working Papers 01-13, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    26. Frank Figge & Tobias Hahn & Stefan Schaltegger & Marcus Wagner, 2002. "The Sustainability Balanced Scorecard – linking sustainability management to business strategy," Business Strategy and the Environment, Wiley Blackwell, vol. 11(5), pages 269-284, September.
    27. Dent, Jeremy F., 1990. "Strategy, organization and control: Some possibilities for accounting research," Accounting, Organizations and Society, Elsevier, vol. 15(1-2), pages 3-25.
    28. Gray, Rob, 2002. "The social accounting project and Accounting Organizations and Society Privileging engagement, imaginings, new accountings and pragmatism over critique?," Accounting, Organizations and Society, Elsevier, vol. 27(7), pages 687-708, October.
    29. Kornberger, Martin & Justesen, Lise & Mouritsen, Jan, 2011. "“When you make manager, we put a big mountain in front of you”: An ethnography of managers in a Big 4 Accounting Firm," Accounting, Organizations and Society, Elsevier, vol. 36(8), pages 514-533.
    30. Sprinkle, Geoffrey B., 2003. "Perspectives on experimental research in managerial accounting," Accounting, Organizations and Society, Elsevier, vol. 28(2-3), pages 287-318.
    31. Yolande E. Chan & Sid L. Huff & Donald W. Barclay & Duncan G. Copeland, 1997. "Business Strategic Orientation, Information Systems Strategic Orientation, and Strategic Alignment," Information Systems Research, INFORMS, vol. 8(2), pages 125-150, June.
    32. Rondinelli, Dennis & Vastag, Gyula, 2000. "Panacea, common sense, or just a label?: The value of ISO 14001 environmental management systems," European Management Journal, Elsevier, vol. 18(5), pages 499-510, October.
    33. Flamholtz, Eric G. & Das, T. K. & Tsui, Anne S., 1985. "Toward an integrative framework of organizational control," Accounting, Organizations and Society, Elsevier, vol. 10(1), pages 35-50, January.
    34. Cho, Charles H. & Patten, Dennis M., 2007. "The role of environmental disclosures as tools of legitimacy: A research note," Accounting, Organizations and Society, Elsevier, vol. 32(7-8), pages 639-647.
    35. Martin Kornberger & Lise Justesen & Jan Mouritsen, 2011. "“When you make manager, we put a big mountain in front of you” : An ethnography of managers in a Big 4 Accounting Firm," Post-Print hal-02311997, HAL.
    36. Laura Albareda & Josep Lozano & Tamyko Ysa, 2007. "Public Policies on Corporate Social Responsibility: The Role of Governments in Europe," Journal of Business Ethics, Springer, vol. 74(4), pages 391-407, September.
    37. Fotis K. Vouzas, 2009. "Business excellence and human resources: investigating best practices in European Quality Awarded Hellenic organisations," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 3(3), pages 281-297.
    38. Chenhall, Robert H., 2005. "Integrative strategic performance measurement systems, strategic alignment of manufacturing, learning and strategic outcomes: an exploratory study," Accounting, Organizations and Society, Elsevier, vol. 30(5), pages 395-422, July.
    39. Deborah Dougherty, 1992. "Interpretive Barriers to Successful Product Innovation in Large Firms," Organization Science, INFORMS, vol. 3(2), pages 179-202, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mollie Painter & Sareh Pouryousefi & Sally Hibbert & Jo-Anna Russon, 2019. "Sharing Vocabularies: Towards Horizontal Alignment of Values-Driven Business Functions," Journal of Business Ethics, Springer, vol. 155(4), pages 965-979, April.
    2. Pawan V. Bhansing & Mark A. A. M. Leenders & Nachoem M. Wijnberg, 2016. "Selection system orientations as an explanation for the differences between dual leaders of the same organization in their perception of organizational performance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 20(4), pages 907-933, December.
    3. Walter Alfredo Salas-Zapata & Leonardo Alberto Ríos-Osorio & Jaiberth Antonio Cardona-Arias, 2017. "Methodological characteristics of sustainability science: a systematic review," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(4), pages 1127-1140, August.
    4. Stefania Veltri & Pina Puntillo, 2020. "On intellectual capital management as an evaluation criterion for university managers: a case study," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(1), pages 135-167, March.
    5. Jafar Rezaei & Miłosz Kadziński & Chrysoula Vana & Lori Tavasszy, 2022. "Embedding carbon impact assessment in multi-criteria supplier segmentation using ELECTRE TRI-rC," Annals of Operations Research, Springer, vol. 312(2), pages 1445-1467, May.
    6. Lamberto Zollo & Maria Carmen Laudano & Andrea Boccardi & Cristiano Ciappei, 2019. "From governance to organizational effectiveness: the role of organizational identity and volunteers’ commitment," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(1), pages 111-137, March.
    7. Jeremy Galbreath, 2016. "When do Board and Management Resources Complement Each Other? A Study of Effects on Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 136(2), pages 281-292, June.
    8. Jacobo-Hernandez Carlos Armando & Jaimes-Valdez Miguel Ángel & Ochoa-Jiménez Sergio, 2021. "Benefits, challenges and opportunities of corporate sustainability," Management, Sciendo, vol. 25(1), pages 51-74, January.
    9. Jean‐Pierre Imbrogiano & Elizabeth Nichols, 2021. "How to serve sustainability performance in businesses? An appetizing recipe to link practices to performance in business sustainability research," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1610-1622, May.
    10. Fotis Kitsios & Maria Kamariotou & Michael A. Talias, 2020. "Corporate Sustainability Strategies and Decision Support Methods: A Bibliometric Analysis," Sustainability, MDPI, vol. 12(2), pages 1-21, January.
    11. Lueg, Rainer & Radlach, Ronny, 2016. "Managing sustainable development with management control systems: A literature review," European Management Journal, Elsevier, vol. 34(2), pages 158-171.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paolo Perego & Frank Hartmann, 2009. "Aligning Performance Measurement Systems With Strategy: The Case of Environmental Strategy," Abacus, Accounting Foundation, University of Sydney, vol. 45(4), pages 397-428, December.
    2. Cadez, Simon & Guilding, Chris, 2008. "An exploratory investigation of an integrated contingency model of strategic management accounting," Accounting, Organizations and Society, Elsevier, vol. 33(7-8), pages 836-863.
    3. Henri, Jean-Francois, 2006. "Organizational culture and performance measurement systems," Accounting, Organizations and Society, Elsevier, vol. 31(1), pages 77-103, January.
    4. Ellen Haustein & Robert Luther & Peter Schuster, 2014. "Management control systems in innovation companies: a literature based framework," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 24(4), pages 343-382, February.
    5. Henri, Jean-Francois, 2006. "Management control systems and strategy: A resource-based perspective," Accounting, Organizations and Society, Elsevier, vol. 31(6), pages 529-558, August.
    6. Henri, Jean-François & Journeault, Marc, 2010. "Eco-control: The influence of management control systems on environmental and economic performance," Accounting, Organizations and Society, Elsevier, vol. 35(1), pages 63-80, January.
    7. Hall, Matthew, 2008. "The effect of comprehensive performance measurement systems on role clarity, psychological empowerment and managerial performance," Accounting, Organizations and Society, Elsevier, vol. 33(2-3), pages 141-163.
    8. Hall, Matthew, 2011. "Do comprehensive performance measurement systems help or hinder managers' mental model development?," LSE Research Online Documents on Economics 36703, London School of Economics and Political Science, LSE Library.
    9. Kaveh Asiaei & Ruzita Jusoh & Omid Barani & Arash Asiaei, 2022. "How does green intellectual capital boost performance? The mediating role of environmental performance measurement systems," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1587-1606, May.
    10. Ivo Hristov & Antonio Chirico & Francesco Ranalli, 2022. "Corporate strategies oriented towards sustainable governance: advantages, managerial practices and main challenges," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(1), pages 75-97, March.
    11. Iryna Alves & Sofia M. Lourenço, 2022. "The use of non-financial performance measures for managerial compensation: evidence from SMEs," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 33(2), pages 151-187, June.
    12. Olivier Boiral & Iñaki Heras-Saizarbitoria & Marie-Christine Brotherton & Julie Bernard, 2019. "Ethical Issues in the Assurance of Sustainability Reports: Perspectives from Assurance Providers," Journal of Business Ethics, Springer, vol. 159(4), pages 1111-1125, November.
    13. Irene Eleonora Lisi, 2018. "Determinants and Performance Effects of Social Performance Measurement Systems," Journal of Business Ethics, Springer, vol. 152(1), pages 225-251, September.
    14. Bedford, David S. & Malmi, Teemu & Sandelin, Mikko, 2016. "Management control effectiveness and strategy: An empirical analysis of packages and systems," Accounting, Organizations and Society, Elsevier, vol. 51(C), pages 12-28.
    15. Cooper, Christine, 2015. "Entrepreneurs of the self: The development of management control since 1976," Accounting, Organizations and Society, Elsevier, vol. 47(C), pages 14-24.
    16. Thi Cam Tu Luong & Ann Jorissen & Ine Paeleman, 2019. "Performance Measurement for Sustainability: Does Firm Ownership Matter," Sustainability, MDPI, vol. 11(16), pages 1-35, August.
    17. Macinati, Manuela S. & Anessi-Pessina, E., 2014. "Management accounting use and financial performance in public health-care organisations: Evidence from the Italian National Health Service," Health Policy, Elsevier, vol. 117(1), pages 98-111.
    18. Lindawati Gani & Johnny Jermias, 2012. "The Effects of Strategy–Management Control System Misfits on Firm Performance," Accounting Perspectives, John Wiley & Sons, vol. 11(3), pages 165-196, September.
    19. Naranjo-Gil, David & Hartmann, Frank, 2007. "Management accounting systems, top management team heterogeneity and strategic change," Accounting, Organizations and Society, Elsevier, vol. 32(7-8), pages 735-756.
    20. Christoph Feichter & Isabella Grabner, 2020. "Empirische Forschung zu Management Control – Ein Überblick und neue Trends [Empirical Management Control Reserach—An Overview and Future Directions]," Schmalenbach Journal of Business Research, Springer, vol. 72(2), pages 149-181, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jmgtgv:v:17:y:2013:i:1:p:71-97. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.