Balance revisited: towards deeply functioning practices for actors and organisations

This essay revisits the concept of balance and seeks to understand balance as a meta-level principle of any management control and performance measurement system. The essay builds a conceptual background for the concept of balance and unveils several perspectives to be taken to achieve balance, i.e., the different perspectives and viewpoints that should be somehow set into purposeful proportions regarding each other. The relevance of revisiting the concept of balance lies in the possibility to form practices that are deeply and sustainably functioning and constructive for different actors, organisations or other entities. This thought is addressed by using a lighthouse metaphor, in this essay

Relocation of Nordic Manufacturing

Manufacturing industries have had an important role in the export-driven economies of the Nordic countries. Manufacturing companies from these countries have increasingly been moving production abroad in recent years. However, backshoring of previously offshored manufacturing is attracting growing attention among researchers and policy-makers. This phenomenon, and its consequences for the renewal of manufacturing, are yet little understood.The research project “Reshoring of manufacturing (ROaMING): Disruptive Technologies, Business Ecosystems and Performance Information as Key Enablers” focused on increased understanding of production relocation trends in the Nordic countries, Denmark, Finland, and Sweden. The aim was to create in-depth knowledge on the status of and potential for relocating manufacturing as a source of renewal of the manufacturing sector. The research approach consisted of quantitative and qualitative parts utilizing both available databases and new data collected through a large-scale survey and case research.The report consists of five main content chapters. First, the survey results of offshoring and backshoring trends in the Nordic countries Denmark, Finland, and Sweden are presented. Then we discuss the use of financial information in decision-making regarding manufacturing offshoring and backshoring. Thereafter the results of a study on manufacturing innovations and the adoption and implementation of new manufacturing technologies are reported. The fourth chapter presents the results of a study involving two manufacturing companies on the role of business ecosystems in manufacturing relocation decisions. Finally, the fifth chapter explores the global production investments made during the period 2005-2015 by large manufacturing firms with headquarters in Denmark, Finland, and Sweden.The results among the Nordic manufacturing firms indicate that offshoring is clearly more common than backshoring. The manufacturing relocations by Nordic firms are geographically wide-ranging. The most important regions for offshoring and of backshoring are Eastern and Western Europe, the Nordic countries, and China. Offshored production is typically cost focused, whereas production relocated to the Nordic countries is relatively complex and technology-intensive, seeking access to technology, skills and knowledge, and proximity to R&D and product development. Movement of production is expected to continue both offshore and back. The reinforcement of the Nordic countries as a strong base for high value-adding manufacturing firms can be influenced by policy measures and future research.Policy implications, as well as future research proposals are noted as the result of this study. Cost competitiveness in the Nordic countries needs to be ensured in relation to their reference group in the competition. This also exerts pressure for continuous productivity improvements through technological advances and process improvements. Access to skills, knowledge and technology are important factors for Nordic manufacturers to relocate production. Therefore product, process and supply chain innovation, as well as colocation of R&D and production, need to be promoted. Policy-makers need to pay attention to maintaining the Nordic innovation systems. Many firms seem to lack a clear strategy or analytical capabilities for manufacturing location decisions. Expertise on managing global manufacturing networks should be enhanced. Follow-up on the extent, drivers and benefits of production relocations of the Nordic manufacturing firms is needed to enhance the fact-based understanding of the longer-term trend of manufacturing relocations

Utilizing management accounting information for decision-making : Limitations stemming from the process structure and the actors involved

Purpose: To be utilized effectively in decision-making processes, management accounting (MA) information should fit the business context and at the same time reflect the roles, responsibilities and values of the actors taking part in the decision-making. This study aims to investigate the limitations for MA information utilization in decision-making. In particular, this study explores limitations stemming from the decision-making process structure and the involvement of several managerial actors. Design/methodology/approach: An exploratory case study of an energy company and its customer company illustrates the current challenges in providing and integrating MA information into decision-making. The analysis is focused on the analytical and actor-based features of the decision-making and thus the limitations for MA information utilization. As a part of the broader research process, the researchers facilitated a meeting in the customer company, where the actors relevant to investment decisions discussed the current limitations in utilizing MA information. Findings: Analytical and actor-based features may take different forms in the decision-making. Some relevant MA information may not be included in an organization’s decision-making process structure that allows merely conventional, yet analytical, decision alternatives. At the same time, certain actors’ viewpoints (such as sustainability metrics) can be excluded from the process without considering the logic behind the exclusion. This case study identifies the following limitations, largely related to insufficient actor-based features in the decision-making: managers may lack expertise in the use of MA tools, managerial interaction may lack reflection on taken-for-granted assumptions, different managers may appreciate different scope, content and timing of MA information and the process structure can ignore the required managerial viewpoints. Research limitations/implications: This study demonstrates that both the decision-making process structure and the needs of the several actors involved may lead to limitations for MA information utilization. Although many limitations stemmed from the insufficient actor-based orientation in the case study, introducing new MA analyses and extending the validity of analytical approaches may also help overcome some of the limitations. Further research should address possibilities to integrate different actors’ viewpoints with MA information already in the decision-making process structure, find ways to introduce MA information on unconventional decision alternatives and enable reflection among and about relevant actors with respect to decision-making. These means could lead to more effective utilization of MA information for decision-making and, consequently, economically viable decisions. Originality/value: This study addresses the limitations in MA information utilization by combining the viewpoints of analytical decision-making processes and reflective actors, and thus unveils possibilities for enhancing MA practice.acceptedVersionPeer reviewe

Balance revisited: towards deeply functioning practices for actors and organisations

This essay revisits the concept of balance and seeks to understand balance as a meta-level principle of any management control and performance measurement system. The essay builds a conceptual background for the concept of balance and unveils several perspectives to be taken to achieve balance, i.e., the different perspectives and viewpoints that should be somehow set into purposeful proportions regarding each other. The relevance of revisiting the concept of balance lies in the possibility to form practices that are deeply and sustainably functioning and constructive for different actors, organisations or other entities. This thought is addressed by using a lighthouse metaphor, in this essay.Non peer reviewe

Management accounting roles in supporting servitisation: implications for decision making at multiple levels

Purpose: The objective of this paper is to analyse the potentially supportive roles of management accounting (MA) in the servitisation of manufacturers. Design/methodology/approach: The paper is a conceptual analysis supported by empirical examples. Findings: The potentially supporting roles of MA are here connected to the process of justifying, defining, and controlling servitisation. The potential units of analysis for MA in such a process are explored by going through the different viewpoints regarding service. The actual roles of MA within the process are examined both conceptually and in light of empirical experience. The paper acknowledges MA as a social phenomenon, taking multiple roles in supporting decision making. Essentially, MA can be used as a source of restricting and enabling, and the roles of MA may range from that of “answer machine” to the subjective and interactive use of MA information. Research limitations/implications: The paper represents a starting point for studying the variety of roles of MA in the servitisation process and it also outlines an agenda for further research. Managerial implications: The paper examines a variety of roles of MA in servitisation. The discussion of the choice and enactment of the relevant accounting objects holds practical value. Originality/value: The roles of MA in servitisation are discussed in more detail in light of the existing literature. Moreover, treating MA as a social phenomenon sheds light on the unaddressed sides of the control in the servitisation context. This supplements the existing service literature, which is dominated by mechanistic cost-system considerations.Peer reviewe