Journal of International DBA Studies

The paradox of a functional Management Control System

Martin Kartomo — 2023-02-20

The design and use of MCS have been extensively researched and debated. However, whether the MCS is functional for strategy execution has received limited attention as MCS research has focused on isolated MCS components debating multiple perspectives with contradicting results, ignoring the experience of practitioners.

This qualitative research paper aims to illuminate the paradox of a functional MCS, provides the opportunity to develop a more complete MCS theory and help organizations to evaluate their MCS. We explored the MCS literature and use conceptual maps to rationalize the MCS findings. We identified factors that MCS researchers evaluated as functioning MCS, nevertheless we found that there are some non-included factors that make MCS being dysfunctional.

This paper is useful to bridge the gap between functional and dysfunctional MCS.

Sensemaking and Sensebreaking in Complexity

Tina Karme — 2024-02-28

This doctoral thesis contributes to discourse and sensemaking literature by exploring discursive dynamics in complexity between business, government, and society. Exploring the discursive dynamics between these three actors in complexity provides a deeper understanding of how sensemaking, sensebreaking, and sensegiving occur and the dynamic aspects grounded in this process. The research uses a phenomenological approach and a social science approach. The study is abductive, and the method applied is grounded theory. It describes the phases and provides examples from 26 in-depth interviews with actors. The complex setting chosen as a case study was the extraction, mining, and mineral industry (EMMI). The people interviewed were international actors despite most of them being based in Finland.

Findings include an indicative model on sensemaking, sensebreaking, and sensegiving that can be applied in complexity. Further, it explains how the model can be used to understand better how different actors make sense of themes and subthemes in their context. This fits well with complexity, as patterns and solutions emerge as we move through time. Complexity does not hold only one best practice but multiple layers and pathways, so different aspects and entanglements occur. This, in turn, explains how the discursive dynamic between actors evolves and develops based on how the actors engage in a sensemaking process.

The research found that time poses issues in the sensemaking process, as the perception of time and fragments of the problems are intertwined and hard to place on a timeline. Further, the findings suggest that new senses cannot occur without sensebreaking. The research indicates that common ground can be found in discussing the terms for the future.

A conceptual map to assess a functioning Management Control System

Martin Kartomo — 2023-12-06

Assessing a functioning Management Control Systems (MCS) fit for its purpose is the challenge that both academics and practitioners face in a fast-changing academic and real-world environment. Both academics and practitioners are unaware of how to assess a functioning MCS to be considered functional for its purpose. The conceptual map of this dissertation provides research opportunities to investigate, and for practitioners to assess the antecedents, factors, and moderators that produce the ambidextrous performance outcome of a functioning MCS, therefore the opportunity whether the MCS supports the paradoxical execution of ambidextrous strategies balancing opposing, yet co-existing, demands of real-world tensions.

Paradoxically, organizational leaders and their top managers demand explorative behavior of managers while debating exploitative performances with the same managers. Organizational leaders unintentionally challenge the functioning MCS, as they purposely influence the functioning vs. functional interplay with explorative assignments, challenging organizational status quos. In contradiction, organizational leaders ask for an exploitative information flow while they demand an ambidextrous information flow. The same organizational leader asks for a business partner with instrumental skills based on inferred information, meanwhile demanding a business partner with skills to encourage organizational learning capabilities to help navigate the organization among dissipating plains.

Academic MCS theory can be self-contained and disconnected from relevance for practice. From the perspective of effectiveness, MCS has been researched near the functioning versus functional debate. This research’s conceptual map addresses the concern of academic MCS research bridging the rigor of research with the relevance for practice and provides an opportunity to connect academic research with the world of practice as the paradoxical MCS problem is seen as an opportunity.

Blockchain Based Auditing

Marcus Selig — 2023-09-12

As a consequence of advancing digitalization, public accounting firms must adapt and refine their business models by offering digitalized auditing and consulting services. In this context, the doctoral thesis is researching the characteristics of blockchain technology and its suitability for auditing. Further analysis is made on the ability of blockchains to eliminate weaknesses of contemporary auditing. In particular, the balance sheet position accounts receivable is researched, if blockchain-based auditing provides higher efficiency to replace traditional substantive auditing procedures of requesting external confirmations. As audits have to be performed in compliance with a codified audit framework, compliance with blockchain-based auditing by the example of accounts receivable is evaluated if it complies with the requirements of GAAS audit standard AU- C 505. Research of the doctoral thesis was performed by a qualitative approach based on a critical literature review. The results of the literature research were verified with primary data collected through interviews. In conclusion, blockchains are suitable tools for auditing purposes. Due to consensus mechanisms and characteristics, blockchains are highly efficient and effective for audit procedures. They provide a high potential to eliminate traditional auditing weaknesses and to disrupt the audit profession. Auditors must rethink their role in a future blockchain-based audit environment, whereas adequate audit frameworks and standards for blockchain-based auditing must be codified.

A Framework for Planning and Executing Organizational Transformation

ANDUALEM HAILU GUDETA — 2024-02-28

Operating in competitive and dynamic global environment organizations are required to transform themselves to sustain competitions, keep up with the constant changing demands of customers and the ever-changing information technology. Such changes are evident particularly in service providing organization such as banks that are often considered as the backbone supporting the sustainable development of developing economies. Ethiopian banking industry that has been protected from foregoing completion appears to be facing a potential competition form more advanced foreign banks in the near future. This and other internal and external factors have propelled a number of banks to go through a transformation process that appears to be diverse in its approach and outcome. This study aims to explore, the different components of organizational transformation and how they are going to be planned and implemented. Doing so, the study has been benefited from the researcher’s practical experience and able to fill in the gap between the theoretical views and the practice on the ground. The study finally draw a framework that can be used as a guide by Organizations to plan and execute transformation process.

Impact of Autonomous Shipping on The Business Model of Commercial Shipping Companies

Jetmund Runde — 2024-02-28

With the rapid technological growth digital transformation has become one of the main aspects of business development. Digitalisation in business helps in ensuring that all business domains would be obligated to ensure that they are being able to engage in effective planning and overall operations which would allow them to improvise the operations well so as to achieve overall efficiency. The aim of the study is to analyse the impact of the autonomous shipping methods on the different aspect of commercial shipping companies’ business model. In order to discuss the influence of commercial shipping on business the company has mainly tried to identify the relationship between commercial shipping with the value proposition, revenue generation, and competitive advantage and target customers. The literature review done in this paper also suggests that an autonomous ship is an entirely unmanned cargo transporter that operates independently using a fleet of sensors and AI algorithms.

In this study a survey questionnaire based primary research has been conducted, where participants were asked about what types of autonomous shipping system is being used, changes in value proposition, revenue generation, competitive advantage and target customers. Total 150 responses were randomly selected using sampling and the hypotheses are tested using the data analysis method. Through the statistical results the effects of autonomous shipping on value proposition, revenue generation, and competitive advantage and target customers have been found. The different impact of different methods of autonomous shipping system have been also explored and tested. It has been rightly identified that autonomous sipping impacts value proposition and competitive advantage to a greater extent.

EXPLORING POSITIVE ILLUSION IN VENTURE CAPITAL INVESTMENT DECISION-MAKING IN THE UAE

Nicholas Bohnlein — 2023-09-12

This qualitative research focuses on the complexity of the decision-making process of professional venture capital investors in the United Arab Emirates. The research aimed to study the potential influence of self-enhancement, understood as positive illusion, on the venture capital decision-making process.

It seemed useful to look at professional investment decision-making through the lens of positive illusions, as it adds new knowledge to the complex and under-explored area, especially considering the different dynamics faced by venture capitalists in this young, yet fast growing and globally impacted entrepreneurial ecosystem in the United Arab Emirates. From a social point of view, the relevance of this research is twofold. The insights benefit all stakeholders within the entrepreneurial ecosystem since venture capital investors act as smart money enablers and connectors between limited partners and founders. Beyond, it emphasizes on the complexity of decision-making and stresses on the requirement of educating the general public and all professionals alike.

Data collection was conducted via semi-structured and individual interviews with venture capital investors operating in the United Arab Emirates. This research is based on grounded theory as a method of analysis of the collected data, with the aim to deepen the object of the search beyond the simple descriptive analysis.

Foremost, the results provide a deeper understanding of the challenges faced by professional investors in this nascent entrepreneurial ecosystem in relation to investment decision-making, interactions and thought processes directed at various stakeholders. Secondly, the results emphasize on the relationship between individual susceptibility towards self-enhancing, positive illusion, the individual context each
individual investor is in and the required dynamics in investment decision-making whilst operating in this nascent entrepreneurial ecosystem. Thirdly, the results also revealed mechanisms how investors suppress or even potentially eliminate positive illusion from influencing the decision-making process. Finally, a model emerged from the data highlighting the interplay and relationship between the different forms of positive illusion and its potential influence on investment decision-making, detailing how ecosystem-relevant variables impact decision-making. The ending of this thesis consists of a conclusion with recommendations to professionals as well as suggestions for further avenues of research.