Abstract
Purpose Literature shows that a strong link between sustainability control systems and sustainability management (SM) fosters sustainability development (SD) and compliance with regulatory requirements and stakeholder expectations. Research on the integration of SM and its control mechanisms in corporate business remains scarce. This study aims to focus on Sustainability Management Control Systems (S)MCS applied in Electric Utility Companies (EUC), which experience close scrutiny by its stakeholders in as much as they play an important role in climate change agendas. Design/methodology/approach The methodological approach includes in-depth expert interviews within seven Austrian EUC followed by qualitative content analysis. This study builds on “MCS as a package” by Malmi and Brown (2008). Institutional logics (IL) are used for the theoretical approach. Findings Results show that several IL are involved in implementing strategic SMCS in EUC. Managers cope by integrating emerging hybrid logics, selectively coupled SMCS and making sense by building a communication bridge between the strategic and operative levels to create awareness. Research limitations/implications Results show that managers in EUC have to acquire a new hybrid logic for SD. This implies the use of informal controls and a strong focus on administrative and cultural controls as the main control mechanisms for SM. Originality/value The paper contributes to MCS research by using the scarcely applied theoretical framework of IL. Findings facilitate a better understanding of the control mechanisms behind SM and the coping strategies of managers in applying SMCS.
Highlights
The compliance logic is more often found in addressing the ecological dimension, as by IP8: if external partners demand certificates, especially in environmental aspects, we do that via standards. [. . .] Whether we call these sustainability goals or compliance to regulators is the same
5.1 Institutional logics in Austrian electric utility companies Sustainability agendas in Austrian Electric Utility Companies (EUC) are governed by hybrid logics (RQ1) focusing on TBL issues
It is misleading to assume that Austrian EUC focuses more on societal issues, when they clearly shift the focus away from regular economic importance and their many sensitive ecological issues
Summary
To address the research objectives, in-depth expert interviews within Austrian EUC are used to identify implemented strategic and operational SMCS, as well as the ways in which managers cope with governing IL. 2.2 Prior literature on sustainability management control systems A literature review of articles published between 2012 and 2019 was undertaken to identify research on implementing and applying SMCS for SM in EUC and to understand managerial behavior and coping strategies.
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