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Creating a common business logic : A case study about strategic congruence and integrated control at Tekniska verken in Linköping AB

Authors
  • Thanhäuser, Marc
  • Lindblad, Emanuel
Publication Date
Jan 01, 2018
Source
DiVA - Academic Archive On-line
Keywords
Language
English
License
Green
External links

Abstract

Background – The energy sector is experiencing instability and energy companies must embrace more flexible structures and strategic initiatives to remain relevant. Purpose – To gain understanding about the challenges with implementing strategic congruence and integrated control in umbrella organizations and how their interplay can contribute to achieving a common business logic. Methodology – In the scope of a single case study, we conducted 20 interviews on corporate, business and functional level at Tekniska verken in Linköping AB. The ‘tentative model’ of Nilsson and Rapp (2005) was re-assessed to examine a common business logic. Findings – Our empirical findings indicated that the businesses of umbrella organizations can be diverse while simultaneously being congruent. When addressing strategic congruence, it is challenging because transparent communication and collaboration between business areas as well as optimizing organizational structures and designing clear responsibility areas is difficult to achieve. Regarding integrated control, it is not easy to realize because the corporate plan needs wide acceptance and breaking down complex content to the business areas is challenging. Not to mention that a common frame of reference regarding terminology and alike control standards requires high commitment.

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