Title: Incentive Systems Related to Sustainability - Are They Efficiently Structured within Nordic Fast Fashion? Problematization: Incentive systems play an important role in guiding and motivating employees towards the goals regarding sustainability for business. The problem that this thesis investigates is that the incentive systems of nordic fast fashion businesses might not be efficiently structured to contribute to the sustainability work. Purpose: The purpose of this study is to investigate the current incentive systems within fast fashion businesses and the relation to sustainability within these systems, in order to determine if the structure of the incentive systems are efficient. Research Questions: (1) How could the sustainability work of nordic fast fashion businesses be enhanced by incentive systems? (2a) What kind of incentive systems are integrated within the fast fashion businesses today, and to what extent are they related to sustainability? (2b) In what way can an efficient sustainability-integrated incentive system provide a potential solution for fast fashion businesses to become more sustainable? Method: In order to study this phenomenon of efficient sustainability-integrated incentive systems, a qualitative approach has been implemented. The qualitative approach was conducted through a multiple case study consisting of an interviewing process as well as a document analysis of the case businesses for the study. Results: The result retrieved from this study manifest that the current incentive systems are heavily focused on financial targets, while being inefficient sustainability-wise in integration and motivation on individual plans. Although the case businesses proved to be valuing and targeting sustainability work to a large extent, the work seems to be excluded from the incentive systems for employees, as the systems are lacking implementation of sustainability as well as clear motivation of the employees. Refusing employees the possibility to influence the targets on their own, and thereby obstructing the ability to actually influence sustainability work according to the incentive theory of motivation and Expectancy theory.  Practical Implications: This thesis provides a good ground to argue for an actual lack of action among fast fashion businesses to make a difference, sustainability wise. The presented factors argue for there actually being more to do to enhance sustainability, while proving that there is reason for trying the sustainability integrated incentive systems approach. Keywords: Incentive System, Fast Fashion, Sustainability, Motivation, Management Control

Bakgrund: Distansarbete har vuxit fram som ett alternativt arbetssätt som erbjuder flera fördelar. Men distansarbete som ett permanent inslag i hur anställda väljer att arbeta ställer flera krav på chefer och deras styrning. Under pandemin såg vi hur anställda som övergick till distansarbete efterfrågade större autonomi, medan chefer tidigt satte in fler kontroller. Det har således uppstått en problematik i relationen mellan tillit och kontroll när anställda väljer att arbeta på distans. Syfte: Syftet med uppsatsen är att beskriva relationen mellan tillit och kontroll under distansarbete, med avsikt att närma sig en förståelse över hur dessa förhåller sig till varandra för att slutligen föreslå hur tillit och kontroll kan balanseras för att uppnå organisatoriska mål. Metod: För att besvara frågeställningarna förhåller vi oss till en kvalitativ forskningsstrategi med en fallstudie på företaget Alpha. Fallstudien består av 12 semistrukturerade intervjuer med 12 respondenter inom ett verksamhetsområde inom fallföretaget. Resultat: Relationen mellan tillit och kontroll vid distansarbete skildras individuellt per anställd beroende på tre faktorer: (1) personen som undersöks och dennas leveranser, (2) tidsintervallet som undersöks, och (3) processen som undersöks. Vi finner genom vår analysmodell stöd för att personer kan delas in i en av fyra grupper för att bättre förstå vilken nivå av tillit respektive kontroll en anställd bör förhålla sig till. Utifrån detta föreslår vi hur personer genom olika inkrement kan förflyttas för att antingen styrka nivån av tillit eller minska nivån av kontroll. / Background: Remote work has emerged as an alternative way of working that offers several advantages. But remote work as a permanent element in how employees choose to work places several demands on managers and their management. During the pandemic, we saw how employees transitioning to remote work demanded greater autonomy, while managers put in more controls early on. A problem has thus arisen in the relationship between trust and control when employees choose to work remotely. Purpose: The purpose of the thesis is to describe the relationship between trust and control during remote work, with the intention of approaching an understanding of how these relate to each other in order to finally propose how trust and control can be balanced to achieve organizational goals. Methodology: To answer the questions, we use a qualitative research strategy with a case study at the company Alpha. The case study consists of 12 semi-structured interviews with 12 respondents within a business area within the case company. Conclusion: The relationship between trust and control in remote work is portrayed individually for each employee depending on three factors: (1) the person being investigated and their deliverables, (2) the time interval being investigated, and (3) the process being investigated. Through our analysis model, we find support that people can be divided into one of four groups to better understand what level of trust and control an employee should relate to. Based on this, we suggest how people can be transferred through different increments to either strengthen the level of trust or reduce the level of control.

There is growing interest in studying management control practices as a package of interrelated mechanisms, yet few empirical examinations exist to date. This is particularly true for small and medium-sized enterprises (SMEs). There is a wide gap in knowledge regarding the use and choice of control practices that constitute SMEs’ management control systems (MCSs). These gaps limit our understanding of how SMEs gather and interpret accounting information for decision-making and control purposes. This thesis contributes to the management control literature by researching MCSs in SMEs, examining their MCS configurations, the diversity of practices that constitute them, and similarities and differences in their composition and use across organizations. Moreover, the research integrates two theoretical perspectives (evolutionary and behavioural) to examine the alignments between MCSs and organizational characteristics, manager characteristics, and organizational environment. This thesis also contributes to the firm interrelations literature by examining how asymmetric relationships between large buyers and SME suppliers influence the MCSs of SMEs. I undertake a multi-case study of seven SMEs that are suppliers in the Chilean mining industry. Data collection included surveys and in-depth semi-structured interviews with general, financial and operations managers. A combination of deductive and inductive approaches was used in data analysis. Intra-case analysis was followed by inter-case contrast and comparisons. Several steps were followed to ensure rigour. The findings provide insights into the role of MCSs in information and control for decision-making and illustrate how MCSs are constituted of diverse control practices whose use is tailored by firms. There is no one-size-fits-all approach to MCSs in SMEs, as each firm has its unique MCS configuration. I identified three primary forms of MCS configurations across cases, including a comprehensive configuration that has not received attention in the literature. Moreover, the findings show that the MCS serves multiple purposes and is essential for ensuring a firm’s survival. While the overall set of controls may not be a well-integrated system, but rather a package of loosely connected parts, it provides a satisfactory basis for decision-making. There is little evidence to suggest that a more integrated system would be an improvement, as firms aim for MCSs to provide the necessary flexibility and adaptability. The results also indicate that managers influence both the control configurations utilized by firms and the design of their control practices. The cases studied further illustrate how powerful clients can create market mechanisms that influence information and control practices of suppliers through transactions and contracts. The study provides evidence of how control practices support SMEs in undertaking complex management decisions to deal with environments characterized by high uncertainty, unfavourable information asymmetries, and rigid market conditions. This research contributes to the academic literature on MCSs by comprehensively examining MCS configurations and their sources of influence in its contexts. It also brings theory closer to practice by inquiring firsthand from managers and accounting professionals on how their firms develop, design, and implement their MCSs. The results will be informative for policymakers, institutions pursuing the development of SMEs that are suppliers in a natural resources-based industry, as well as accounting and management professionals.

Management Control Systems (MCS) fyller en viktig funktion genom att kontrollera och styra anställda i rätt riktning för att uppnå strategiska mål. Denna process kan möta motstånd i form av kontrollaversion. Studien syftar till att utforska ett möjligt samband mellan kontrollaversion och hur tajt tre specifika styrsystem upplevs inom företagsmiljöer. Undersökningen bygger på en kvantitativ metod och datainsamlingen sker genom en enkätundersökning riktad till yrkesverksamma inom olika branscher. Resultaten visar ingen statistisk signifikans mellan styrsystemens tajthet och kontrollaversion. Emellertid visar kompletterande kvalitativa data på tendenser som indikerar att välmotiverad och värdeskapande kontroll är mer accepterad. Vidare betonas att balansen mellan tydliga mål och förväntningar, tillsammans med autonomi och flexibilitet, är avgörande. Dessutom verkar begrepp som övervakning ha en koppling till kontrollaversion. Slutsatsen understryker behovet av ytterligare forskning för att djupare förstå de komplexa dynamikerna i hur styrsystem och deras utformning påverkar anställdas attityder.

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Hybrid organizations that pursue both social mission and profit aims have been prevalent in our society for many decades. However, the importance of for-profit corporations’ positive social impact has been emphasized and scrutinized in recent few decades, attracting attention of both scholars and practitioners. This study builds on the existing strategy and control framework and proposes an extended conceptual framework for the link between strategic positioning and operational control for hybrid organizations that pursue both social mission and financial sustainability. By conducting a field study, I document three main findings. First, hybrid organizations differentiate themselves from each other by striking a unique balance between social mission and profit goals, and this unique balance determines unique strategic positioning of a hybrid organization. Second, hybrid organizations with different strategic positioning mobilize different dimensions of operational control to monitor their operating activities that support the unique balance between social mission and profit aims. Third, using the content analysis, I document that managerial attention placed on various dimensions of operational control on a daily basis vary across hybrid organizations with different strategic positioning as each organization configures different sets of operating activities to support its unique hybridity. / Business Administration/Interdisciplinary

京都大学 / 新制・課程博士 / 博士(経済学) / 甲第23446号 / 経博第644号 / 新制||経||299(附属図書館) / 京都大学大学院経済学研究科経済学専攻 / (主査)教授 澤邉 紀生, 教授 草野 真樹 講師 鈴木 寛之 / 学位規則第4条第1項該当 / Doctor of Economics / Kyoto University / DGAM

Date: 2024-05-29 Level: Bachelor thesis in Business Administration, 15 cr Institution: School of Business, Society and Engineering, Mälardalen University Authors: Robert Bildt, Ebrahim Alibhai, Sebastian Karlsson Title: The Organizational Puzzle: Congruence and its Impact on Change Processes Supervisor: Johan Grinbergs Keywords: Congruence, Communication, Organizational change, Management ControlSystems, Leadership, Contingency Theory Research question: How does congruence between the leader and their organizationalcontext affect organizational changes? Purpose: The purpose of this study is to investigate and analyze how congruence betweenthe leader and their organizational context affects adaptability to changes in the organization.By examining these aspects, we can gain deeper insight and understanding of howcongruence can influence the implementation of organizational change. Method: A case study was conducted using a qualitative method for data collection and dataprocessing. To gather empirical data, semi-structured interviews were conducted, which werelater used for a thematic analysis. Conclusion: The conclusion is that communication is crucial for achieving congruencewithin an organization. Effective communication helps leaders adapt to the organizationalcontext, motivate employees and manage changes efficiently. In the studied organization,respondents indicated that involvement, communication and transparency were central toachieving congruence, despite the challenges varying between departments. Leadersprioritized communication in change management, which facilitated employees'understanding and acceptance of changes.

Ökad efterfrågan från intressenter på hållbarhetsarbete i företag har skapat incitament att inkludera det i verksamheten. Eftersom styrsystem i företag kan ses som en viktig mellanhand för att implementera initiativ i företag, ses styrsystem även vara centrala vid hållbarhetsintegrering. Arbetet med hållbarhetsimplementering kan dock ses som en komplex process där en effektiv styrning är nödvändig för att se till att förändringen faktiskt sker. Syftet med studien är att skapa förståelse för styrningens utformning och användning i förverkligandet av hållbarhetsstrategier. Studien har genomförts genom en kvalitativ flerfallsstudie där styrningen i tre fallföretag undersöktes med fokus på utformning och användning av styrsystem med utgångspunkt i Malmi och Browns (2008) styrpaket. Genom att både hållbarhetschefer och operativt anställda från respektive fallföretag intervjuats, erhölls en bredare förståelse för styrsystemen från ett lednings- och mottagarperspektiv. Resultatet visade att samtliga företag gjort framsteg där styrsystem har utformats för att öka hållbarhetsarbetet. Gällande styrningens användning fanns dock större utmaningar där studien visar på en viss okunskap från anställda gällande styrningens faktiska innebörd. I relation till hållbarhet sågs administrativ styrning och kulturstyrning ha störst genomslag. Planering och cybernetisk styrning hade mindre genomslag och belöningar och bonusar för hållbarhet saknades helt. Studien bidrar med ett perspektiv på styrning i relation till hållbarhet som framhäver vikten av att både utforma och använda styrsystemen för att främja hållbart företagande. Företagsledningar kan använda studien för att få insyn i anställdas perspektiv och således förbättra och effektivisera hållbarhetsarbetet. / Increased stakeholder demand for sustainability efforts in companies has created incentives to integrate these initiatives into their operations. As management control systems in companies can be seen as important intermediaries for implementing initiatives, they are also considered central to the integration of sustainability. However, the process of implementing sustainability can be complex, necessitating effective management control to ensure that change actually occurs. The purpose of this study is to understand the design and use of management control systems in the realization of sustainability strategies. The study was conducted through a qualitative multiple case study in which the management control systems of three companies were examined, focusing on the design and use of these systems based on Malmi and Brown's (2008) management control package. By interviewing both sustainability managers and operational employees from each company, a broader understanding of the control systems from both a management and recipient perspective was obtained. The results showed that all companies have made progress in designing management control systems to enhance sustainability efforts. However, there were greater challenges regarding the use of these controls, with the study indicating a certain lack of awareness among employees about the actual meaning of the controls. In relation to sustainability, administrative control and cultural control were found to have the greatest impact. Planning and cybernetic control had less impact, and there were no rewards or bonuses for sustainability. The study provides a perspective on management control in relation to sustainability that highlights the importance of both designing and using these systems to promote sustainable business practices. Company management can use the study to gain insight into employees' perspectives, thereby improving and enhancing sustainability efforts.

This study explores the integration of artificial intelligence (AI) in management control systems within small and medium-sized enterprises (SMEs) in the manufacturing industry. Using a qualitative research methodology through expert interviews and focus groups, the research aims to understand how AI can streamline management control systems and identify the challenges companies face during its implementation. The results indicate that AI has significant potential to automate repetitive tasks, improve data analysis, and facilitate proactive decision-making, thereby increasing overall efficiency. However, substantial initial investments and high technical expertise are required to succeed in AI integration. Additionally, it is crucial to maintain high data quality and robust data management systems. The study also shows that there is a symbiotic relationship between AI tools and management control systems, suggesting that effective management control systems are essential to maximize the benefits of AI. This study contributes to a deeper understanding of the strategic planning required for AI integration and presents insights for small and medium-sized enterprises (SMEs) looking to integrate AI into their operations.