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Integrating the environment and management control systems in institutional complexity: The case of Vietnamese Steel Corporation

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Crystal 2
Tuesday, July 2, 2024
4:00 PM - 4:15 PM

Presenter

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Ms Phuong Vu
Academic teacher
The University of Western Australia

Integrating the environment and management control systems in institutional complexity: The case of Vietnamese Steel Corporation

Abstract

This paper aims to investigate the integration of environmental issues into management control systems (MCS) in organisations that face multiple institutional logics. By studying a Vietnamese state-owned enterprise (SOE) that finished equitization and corporatisation and is in progress of IPO, this paper demonstrates that the interplay of multiple logics, including State, and corporate logics, shapes the manner in which the environment integrates to MCS. This study also reveals that different MCS practices tend to encompass institutional demands in diverse ways and to varying degrees. However, regardless of whether the manners that environment integrates to different MCS components are implemented to simply respond to plural institutional expectations, connect different organising principles, or balance elements of multiple logics, they function as hybrid practices, helping to maintain the hybrid nature of the firm as a corporatized SOE. In addition, we find that heterogeneous incorporation of environmental issues in MCS within different business units of a SOE organisation results from multiple logics that are filtered by situation factors.

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