The micro-foundations of Corporate Purpose: Performance management in dynamic environments

Cristiano Busco; Elena Giovannoni; Angelo Riccaboni; Mark Frigo

doi:10.1016/j.mar.2024.100890

The micro-foundations of Corporate Purpose: Performance management in dynamic environments

Cristiano Busco^*, Elena Giovannoni, Angelo Riccaboni, Mark Frigo

^*Corresponding author for this work

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Abstract

This paper examines the micro-foundations of ‘corporate purpose’, that is the enduring reason for being of a corporation in relation to society. While the relevance of corporate purpose has been widely recognized, its practical enactment by managers at the operating level remains problematic, particularly in dynamic environments. By relying upon the field study of a leading Italian group in the food industry, and the literature on the micro-foundations of institutions, we explore the role of a performance management system (PMS) in mobilizing corporate purpose in specific practical situations at the management level, while the organization faces the demands coming from the external environment. We show that the PMS can be drawn upon by managers as a set of tools and practices through which purpose is situated at the micro-level into actions, decisions, and material artefacts that come together in a ‘social situation’. Here, the PMS enables managers to recognize a ‘situation’ for enacting different aspects of purpose through interactions, filling it with evolving meanings, while sustaining its connections with global development needs.

Original language	English
Article number	100890
Journal	Management Accounting Research
Early online date	23 Mar 2024
DOIs	https://doi.org/10.1016/j.mar.2024.100890
Publication status	E-pub ahead of print - 23 Mar 2024

Bibliographical note

Acknowledgments:
This paper presents part of the outcomes of a research project titled “Aligning strategy to organizational purpose: performance management for the purpose-driven organization”, 2019–2021, funded by the Institute of Management Accountants (IMA) Research foundation. We are extremely grateful to the Institute for the funding received in support of our project. Furthermore, we would like to thank the guest editors, and the two anonymous reviewers for all suggestions provided during the review process, as well as our contacts and informants at Barilla company for their time and kind availability.

Keywords

performance management systems
corporate purpose
micro-foundations
social situations
societal development
Dynamic environments
case study

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Cite this

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title = "The micro-foundations of Corporate Purpose: Performance management in dynamic environments",

abstract = "This paper examines the micro-foundations of {\textquoteleft}corporate purpose{\textquoteright}, that is the enduring reason for being of a corporation in relation to society. While the relevance of corporate purpose has been widely recognized, its practical enactment by managers at the operating level remains problematic, particularly in dynamic environments. By relying upon the field study of a leading Italian group in the food industry, and the literature on the micro-foundations of institutions, we explore the role of a performance management system (PMS) in mobilizing corporate purpose in specific practical situations at the management level, while the organization faces the demands coming from the external environment. We show that the PMS can be drawn upon by managers as a set of tools and practices through which purpose is situated at the micro-level into actions, decisions, and material artefacts that come together in a {\textquoteleft}social situation{\textquoteright}. Here, the PMS enables managers to recognize a {\textquoteleft}situation{\textquoteright} for enacting different aspects of purpose through interactions, filling it with evolving meanings, while sustaining its connections with global development needs. ",

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note = "Acknowledgments: This paper presents part of the outcomes of a research project titled “Aligning strategy to organizational purpose: performance management for the purpose-driven organization”, 2019–2021, funded by the Institute of Management Accountants (IMA) Research foundation. We are extremely grateful to the Institute for the funding received in support of our project. Furthermore, we would like to thank the guest editors, and the two anonymous reviewers for all suggestions provided during the review process, as well as our contacts and informants at Barilla company for their time and kind availability.",

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N1 - Acknowledgments: This paper presents part of the outcomes of a research project titled “Aligning strategy to organizational purpose: performance management for the purpose-driven organization”, 2019–2021, funded by the Institute of Management Accountants (IMA) Research foundation. We are extremely grateful to the Institute for the funding received in support of our project. Furthermore, we would like to thank the guest editors, and the two anonymous reviewers for all suggestions provided during the review process, as well as our contacts and informants at Barilla company for their time and kind availability.

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N2 - This paper examines the micro-foundations of ‘corporate purpose’, that is the enduring reason for being of a corporation in relation to society. While the relevance of corporate purpose has been widely recognized, its practical enactment by managers at the operating level remains problematic, particularly in dynamic environments. By relying upon the field study of a leading Italian group in the food industry, and the literature on the micro-foundations of institutions, we explore the role of a performance management system (PMS) in mobilizing corporate purpose in specific practical situations at the management level, while the organization faces the demands coming from the external environment. We show that the PMS can be drawn upon by managers as a set of tools and practices through which purpose is situated at the micro-level into actions, decisions, and material artefacts that come together in a ‘social situation’. Here, the PMS enables managers to recognize a ‘situation’ for enacting different aspects of purpose through interactions, filling it with evolving meanings, while sustaining its connections with global development needs.

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The micro-foundations of Corporate Purpose: Performance management in dynamic environments

Abstract

Bibliographical note

Keywords

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