The incorporation process of emergent strategies by management control systems: evidences from a case study with BSC

Luiz Gustavo Vaz de Melo, Maria Elisa Brandão Bernardes

Abstract


Objective: The purpose of the study was to describe an incorporation process of emergent strategies by an organization that uses a Management Control System (MCS) based on the Balanced Scorecard (BSC).

Methodology/approach: The process approach, by which the phenomenon was examined as a sequence of events over time, where the participation of individuals of different levels and positions was considered. The method used was the case study, which privileges qualitative surveys, such as the interaction between the MCS and the deliberate or emergent strategies.

Originality/relevance: It expanded the knowledge of the implementation process through the use of MCS, based on the BSC, by which, despite strict control, a new strategy emerged and was incorporated into the deliberate strategy. Studies that approach the two theoretical fronts (emergent strategy and management control) are rare. Here we offer a detailed description of the process that integrates them.

Main results: The results evidenced that the use of a MCS, such as the BSC, makes the communication and the development of aligned and prioritized strategic goals feasible, as well as the monitoring of implementation through reviews, and it is compatible with the development of an emergent strategy. It also explained that it occurred in a slow and incremental way. Furthermore, its integration was only possible thanks to the continuous and progressive movements of internal constraints, arising from the base of the organization, and external, from different market players.

Theoretical/methodological contributions: The study contributed to clarify the strategy implementation process, through the use of a MCS, such as the BSC, with its limitations, and also on the dynamics of the evolution of an emergent strategy, from its manifestation to its incorporation into the plan, highlighting the participation of different stakeholders in the process.


Keywords


Balanced Scorecard; Emergent strategy; Implementation; Process.

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DOI: https://doi.org/10.5585/riae.v19i3.17290

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