Studies in managerial and financial accounting, Jun 19, 2012
Purpose – The accounting literature has demonstrated increased concern over issues of sustainabil... more Purpose – The accounting literature has demonstrated increased concern over issues of sustainability. One of the most critical issues that corporations face at the moment is climate change. This especially concerns companies that are substantial consumers of materials and energy. Corporations have increasingly acknowledged that to address this issue the existing ways of managing business must be changed. This study examines the challenges posed by measurement of energy efficiency performance in an energy-intensive industry. It covers the challenges encountered with respect to the energy efficiency indicator and its use as a management tool. Methodology – The case study method was used to conduct the research, which took place in a single firm in an energy-intensive process industry. Findings – The results indicate that the current energy efficiency indicator, specific energy consumption (SEC), does not meet the criteria for good performance measurement. In particular, the controllability of energy efficiency seems problematic. Another major challenge is target setting. Measurable targets are needed to identify and prioritise areas where consumption and emission can be reduced. Practical implications – The study provides practical knowledge on what is happening in organisations that pursue sustainable development and in particular, environmental efficiency. Originality/value – Although the conceptual challenges in energy efficiency measurement are well known in the technical literature, discussions dealing with its management have been few in number. This study is a cross-disciplinary work and combines technical energy efficiency literature and management accounting research on performance management.
South Asian Journal of Business and Management Cases, 2022
This study addresses the phenomenon of interfirm control in the context of sustainability. The re... more This study addresses the phenomenon of interfirm control in the context of sustainability. The research question is how is it possible to develop interfirm control in the field of sustainability and with the associated stakeholder focus needed so that stakeholder views are taken as explicit goals. The study is connected to theories on interfirm control, control package and sustainability. The research uses an intensive case methodology and semi-structured interviews focusing on a case company in the building industry and its stakeholders. The major theme of control in the company studied is sustainability. The article shows how the company establishes interfirm control and even attempts to control its customers, which may be perceived as a relatively rare practice. However, it is shown that the control approach to sustainability can result in the theme being defined on the basis of the perspective of the industry, the company and control itself, not on the basis of stakeholder needs...
The purpose of this study is to analyze how airline companies use their management control system... more The purpose of this study is to analyze how airline companies use their management control systems in order to gain a sustainable competitive advantage in a situation of environmental change resulting from economic deregulation. Therefore, a model of strategic control information will be developed. The research is a case study on Finnair, the Finnish national carrier. The study describes how the company prepared for deregulation by adapting its strategies, organization structure and management control systems. The strategic control information in a route decision was investigated. Producing planning and control information for strategic decision making was mainly based on traditional methods, and the control systems did not generate a great deal of information in accordance with the theoretical model of strategic control information. Nevertheless, strategic viewpoints were taken into account in management decision making, in spite of the shortcomings of the control system. Moreover,...
Studies in managerial and financial accounting, Jun 19, 2012
Purpose – The accounting literature has demonstrated increased concern over issues of sustainabil... more Purpose – The accounting literature has demonstrated increased concern over issues of sustainability. One of the most critical issues that corporations face at the moment is climate change. This especially concerns companies that are substantial consumers of materials and energy. Corporations have increasingly acknowledged that to address this issue the existing ways of managing business must be changed. This study examines the challenges posed by measurement of energy efficiency performance in an energy-intensive industry. It covers the challenges encountered with respect to the energy efficiency indicator and its use as a management tool. Methodology – The case study method was used to conduct the research, which took place in a single firm in an energy-intensive process industry. Findings – The results indicate that the current energy efficiency indicator, specific energy consumption (SEC), does not meet the criteria for good performance measurement. In particular, the controllability of energy efficiency seems problematic. Another major challenge is target setting. Measurable targets are needed to identify and prioritise areas where consumption and emission can be reduced. Practical implications – The study provides practical knowledge on what is happening in organisations that pursue sustainable development and in particular, environmental efficiency. Originality/value – Although the conceptual challenges in energy efficiency measurement are well known in the technical literature, discussions dealing with its management have been few in number. This study is a cross-disciplinary work and combines technical energy efficiency literature and management accounting research on performance management.
South Asian Journal of Business and Management Cases, 2022
This study addresses the phenomenon of interfirm control in the context of sustainability. The re... more This study addresses the phenomenon of interfirm control in the context of sustainability. The research question is how is it possible to develop interfirm control in the field of sustainability and with the associated stakeholder focus needed so that stakeholder views are taken as explicit goals. The study is connected to theories on interfirm control, control package and sustainability. The research uses an intensive case methodology and semi-structured interviews focusing on a case company in the building industry and its stakeholders. The major theme of control in the company studied is sustainability. The article shows how the company establishes interfirm control and even attempts to control its customers, which may be perceived as a relatively rare practice. However, it is shown that the control approach to sustainability can result in the theme being defined on the basis of the perspective of the industry, the company and control itself, not on the basis of stakeholder needs...
The purpose of this study is to analyze how airline companies use their management control system... more The purpose of this study is to analyze how airline companies use their management control systems in order to gain a sustainable competitive advantage in a situation of environmental change resulting from economic deregulation. Therefore, a model of strategic control information will be developed. The research is a case study on Finnair, the Finnish national carrier. The study describes how the company prepared for deregulation by adapting its strategies, organization structure and management control systems. The strategic control information in a route decision was investigated. Producing planning and control information for strategic decision making was mainly based on traditional methods, and the control systems did not generate a great deal of information in accordance with the theoretical model of strategic control information. Nevertheless, strategic viewpoints were taken into account in management decision making, in spite of the shortcomings of the control system. Moreover,...
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