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The first purpose of this research is to study how and whether the joint use of lean production, value stream costing and accounting performance measures contribute to performance. Comparing a first-order and second-order structural equation model with survey data from 368 American production facilities, we find that lean production and management accounting practices (value stream costing and accounting measures of variance) collectively – rather than additively – affect performance. This finding indicates that organisations obtain greater performance by integrating lean production and management accounting practices into a system. The second purpose of this research is to determine whether the length of time organisations have employed lean production (‘time with lean’) moderates the joint effect of lean production and management accounting practices on performance. We find that the joint performance effect is positively moderated by the time with lean (i.e. we find a positive progressive learning curve). This contradicts the traditional wisdom on learning, which suggests that the benefits from learning are degressive. We argue that this positive moderation derives from the difficulty of understanding relations between multiple variables and the need for organisations to promote system-wide coherence via holistic changes.
Henrik Nielsen; Thomas Borup Kristensen; Lawrence Grasso. Performance effects of value stream costing and accounting performance measures in lean production companies – accounting for time compression. Production Planning & Control 2021, 1 -17.
AMA StyleHenrik Nielsen, Thomas Borup Kristensen, Lawrence Grasso. Performance effects of value stream costing and accounting performance measures in lean production companies – accounting for time compression. Production Planning & Control. 2021; ():1-17.
Chicago/Turabian StyleHenrik Nielsen; Thomas Borup Kristensen; Lawrence Grasso. 2021. "Performance effects of value stream costing and accounting performance measures in lean production companies – accounting for time compression." Production Planning & Control , no. : 1-17.
In this paper, we study how organizational members’ perceptions of the enabling use of performance measures is increased when the case company adopted lean principles in one of its production-support departments. The theory of enabling formalization is applied to gauge and understand the extent to which organizational members perceive performance measures, such as key performance indicators (KPIs), as enabling (i.e. as a vehicle creating continuous improvement). We empirically confirm a positive relation between changing the context of performance measures and the perceived level of enabling use of KPIs by applying a difference-in-differences test. We also show that the increase in perceptions of the enabling use of KPIs is associated with improved perceived performance (e.g. time consumption, quality). We measure the perceived enabling use using data gathered from questionnaires distributed over several rounds in both the department implementing lean principles and a non-affected control department. As such, our study involves a longitudinal, quasi-natural experiment. We confirm the statistical results through interviews, observations, and internal documents from the case company.
Thomas Borup Kristensen; Henrik Saabye. Increasing the enabling use of performance measures: a longitudinal quasi natural experiment. Journal of Management Control 2021, 1 -33.
AMA StyleThomas Borup Kristensen, Henrik Saabye. Increasing the enabling use of performance measures: a longitudinal quasi natural experiment. Journal of Management Control. 2021; ():1-33.
Chicago/Turabian StyleThomas Borup Kristensen; Henrik Saabye. 2021. "Increasing the enabling use of performance measures: a longitudinal quasi natural experiment." Journal of Management Control , no. : 1-33.
This study presents empirical evidence for the ongoing discussion about the link between Lean Management (LM) and industry 4.0 (I4.0) by exploring a non-technical perspective on how manufacturers can capitalize on their technological investments. The paper, therefore, studies the link between LM and I4.0 from a learning organization (LO) perspective by examining the implementation, commissioning, and utilization of a real-time operational data gathering system at a Danish building material manufacturer. This six months in-depth case study finds that for the manufacturer to utilize real-time operational data from a LO perspective, several barriers must be addressed: problem solving that is not initiated by operators, operators who do not have second-order problem-solving abilities, operators who perceive the new real-time data technology as coercive, poor learning environments and processes, and a lack of leadership that supports learning. This study can help practitioners understand the importance of balance, the prevalent technocentric focus when implementing new I4.0 technologies with a LO focus. Furthermore, the study provides practitioners with a list of specific barriers from a LO perspective to be mindful of when aiming to combine LM and I4.0 to improve production performance.
Henrik Saabye; Thomas Borup Kristensen; Brian Vejrum Wæhrens. Real-Time Data Utilization Barriers to Improving Production Performance: An In-depth Case Study Linking Lean Management and Industry 4.0 from a Learning Organization Perspective. Sustainability 2020, 12, 8757 .
AMA StyleHenrik Saabye, Thomas Borup Kristensen, Brian Vejrum Wæhrens. Real-Time Data Utilization Barriers to Improving Production Performance: An In-depth Case Study Linking Lean Management and Industry 4.0 from a Learning Organization Perspective. Sustainability. 2020; 12 (21):8757.
Chicago/Turabian StyleHenrik Saabye; Thomas Borup Kristensen; Brian Vejrum Wæhrens. 2020. "Real-Time Data Utilization Barriers to Improving Production Performance: An In-depth Case Study Linking Lean Management and Industry 4.0 from a Learning Organization Perspective." Sustainability 12, no. 21: 8757.
Purpose This paper aims to study the relations between lean operations, lean principles in finance functions and the roles of finance functions. Design/methodology/approach The paper uses structural equation modeling to analyze data from 408 different firms in the Danish production and services sectors. A dyadic approach is applied, as a sub-sample of 107 chief operating officers in the responding firms is used to investigate the construct validity, reliability and average deviation index of the instrument measuring the roles of finance functions. Findings The paper finds that lean-operation firms emphasize four different yet interdependent roles of finance functions. The paper also finds that lean operation leads to firms’ finance functions adopting lean principles. Research limitations/implications This paper characterizes lean-operation firms as contextually ambidextrous to predict relations between lean operation and roles of finance functions. The paper expands prior case study findings on the roles of finance functions in lean-operation firms, and the findings of the paper underline that finance functions continue to play an important role in these firms. Practical implications Decision-makers in lean-operation firms should not be hesitant with respect to integrating finance function workers into the lean operation. Furthermore, decision-makers should understand that a balanced emphasis of the roles of finance functions is necessary to avoid overemphasizing exploitation at the expense of exploration, or vice versa. Originality/value To the best of the authors’ knowledge, this is the first paper to provide large-scale evidence of the roles of finance functions in lean-operation firms and to show that lean principles diffuse to finance functions. Furthermore, the paper introduces a new instrument for measuring finance function roles, based on the competing values framework.
Henrik Nielsen; Thomas Borup Kristensen. Impact of lean operations on the roles of finance functions and their application of lean. European Business Review 2020, 32, 731 -763.
AMA StyleHenrik Nielsen, Thomas Borup Kristensen. Impact of lean operations on the roles of finance functions and their application of lean. European Business Review. 2020; 32 (4):731-763.
Chicago/Turabian StyleHenrik Nielsen; Thomas Borup Kristensen. 2020. "Impact of lean operations on the roles of finance functions and their application of lean." European Business Review 32, no. 4: 731-763.
This paper develops novel test formulas able to test performance effects from balancing control forms in management control systems using the notion of complementarity. Extant research has underlined the importance of researching and understanding complementarity effects stemming from multiple control forms—i.e., management control systems. In configurations of management controls, a number of control forms work interdependently. In some cases, these interdependencies produce complementarity effects, which previous literature has not captured in full, as synergy effects from interdependencies in configurations are often treated implicitly or tested too reductionistic. Previously used statistical test techniques and formulas have not been fully developed to test performance effects using a configurational fit approach that accounts for complementarity effects from balancing multiple control forms and roles of management accountants (finance functions). In configurations of management control systems, control forms and/or roles of management accountants can be balanced to fit local optima for each control form, and simultaneously fitting the distance, i.e. balance, to other control forms/roles, in which the latter can produce complementarity effects. This balance type of complementarity is a subset of the broader notion of complementarity. To move research forward, new formulas are developed that is suited to testing complementarity effects from balancing management control forms. In this way, the black box of how configurations of control forms produce performance is being opened, yet not completely, to better examine how they collectively produce performance. The developed test formulas are illustrated using survey-data on whether multiple roles of management accountants can affect performance in a complementing manner given the strategy of the company they serve.
Thomas Borup Kristensen; Henrik Nielsen. Configuring a profile-deviation-analysis to statistical test complementarity effects from balanced management control systems in a configurational fit approach. Journal of Management Control 2020, 30, 439 -475.
AMA StyleThomas Borup Kristensen, Henrik Nielsen. Configuring a profile-deviation-analysis to statistical test complementarity effects from balanced management control systems in a configurational fit approach. Journal of Management Control. 2020; 30 (4):439-475.
Chicago/Turabian StyleThomas Borup Kristensen; Henrik Nielsen. 2020. "Configuring a profile-deviation-analysis to statistical test complementarity effects from balanced management control systems in a configurational fit approach." Journal of Management Control 30, no. 4: 439-475.
This study presents empirical evidence that the increased enabling use of standard variable costing (SVC) increases performance, and decreases the level of goal-incongruent behaviour in a lean production context. This enabling use is examined by the application of the framework of enabling formalization, characterized by; repair, internal transparency, global transparency, and flexibility. This study finds they have a joint, complementarity, effect on performance and lean-congruent behaviour using a second-order structural equation model applied to a survey from inside two case companies. These results are combined with qualitative evidence. This paper helps practitioners to understand the consequences (goal incongruent behaviour and performance) of less enabling use of SVC. Practitioners can also be guided by the enabling framework questions, we developed, to gauge how well their costing models is fitting lean production in their companies. Lastly, it is concluded that SVC can be used in an enabling way in lean production. This feeds into the ongoing discussion on which costing models that fit with lean production.
Thomas Borup Kristensen. Enabling use of standard variable costing in lean production. Production Planning & Control 2020, 32, 169 -184.
AMA StyleThomas Borup Kristensen. Enabling use of standard variable costing in lean production. Production Planning & Control. 2020; 32 (3):169-184.
Chicago/Turabian StyleThomas Borup Kristensen. 2020. "Enabling use of standard variable costing in lean production." Production Planning & Control 32, no. 3: 169-184.
Purpose The purpose of this paper is to study management control mechanisms (social, behavioral, and output control mechanisms) and their complementary effects on firm performance in lean manufacturing firms. Design/methodology/approach The study uses second-order structural equation modeling to analyze survey data from 368 different lean manufacturing facilities. Findings The paper finds that the complementary effects of management control mechanisms in lean manufacturing firms outweigh their additive effects on firm performance. Research limitations/implications Applying isolated lean management control mechanisms leads to inferior performance, as these management control mechanisms are complementary. Thus, to realize the full potential of lean manufacturing, this paper suggests that lean management control mechanisms should be implemented as an integrated control system. Practical implications Firms seeking to benefit from the implementation of lean manufacturing should understand the complementarity among the management control mechanisms, as the performance effects of lean management control mechanisms when applied together are greater than their isolated additive effects. Originality/value This paper is the first to provide empirical evidence of the superior firm performance effects of complementary lean management control mechanisms compared with their additive effects. This paper also expands the understanding of how to conceptualize lean management control mechanisms. Specifically, this is the first paper to distinguish between social cultural control and social visual control mechanisms as well as between non-financial and financial control mechanisms. This paper is also the first to use a second-order structural equation model to properly test and account for the complementary effects on firm performance that stem from multiple control mechanisms.
Henrik Nielsen; Thomas Borup Kristensen; Lawrence P. Grasso. The performance effects of complementary management control mechanisms. International Journal of Operations & Production Management 2018, 38, 2124 -2148.
AMA StyleHenrik Nielsen, Thomas Borup Kristensen, Lawrence P. Grasso. The performance effects of complementary management control mechanisms. International Journal of Operations & Production Management. 2018; 38 (11):2124-2148.
Chicago/Turabian StyleHenrik Nielsen; Thomas Borup Kristensen; Lawrence P. Grasso. 2018. "The performance effects of complementary management control mechanisms." International Journal of Operations & Production Management 38, no. 11: 2124-2148.
Thomas Borup Kristensen; Poul Israelsen. Management accounting system problems in context of Lean. The Routledge Companion to Cost Management 2015, 1 .
AMA StyleThomas Borup Kristensen, Poul Israelsen. Management accounting system problems in context of Lean. The Routledge Companion to Cost Management. 2015; ():1.
Chicago/Turabian StyleThomas Borup Kristensen; Poul Israelsen. 2015. "Management accounting system problems in context of Lean." The Routledge Companion to Cost Management , no. : 1.
Thomas Borup Kristensen; Poul Israelsen. Performance effects of multiple control forms in a Lean organization: A quantitative case study in a systems fit approach. Management Accounting Research 2014, 25, 45 -62.
AMA StyleThomas Borup Kristensen, Poul Israelsen. Performance effects of multiple control forms in a Lean organization: A quantitative case study in a systems fit approach. Management Accounting Research. 2014; 25 (1):45-62.
Chicago/Turabian StyleThomas Borup Kristensen; Poul Israelsen. 2014. "Performance effects of multiple control forms in a Lean organization: A quantitative case study in a systems fit approach." Management Accounting Research 25, no. 1: 45-62.