To Örebro University

This conceptual paper explores the iterative relationship between system design and use for the development process of sustainability control systems (SCS). Buildingupon Adler and Borys’ seminal framework (Adm Sci Q 41(4):61–89, 1996) as ananalytical tool, it suggests that SCS are characteristically distinct, and more researchinto the dual role of control (i.e. control over based on system design and controlin situ based on system use by the individual user) is necessary for future theorisations of the SCS. It poses that for sustainable futures that extend beyond organisational boundaries, more attention is required on individual general employees inmanagement accounting and control frameworks as instrumental for performanceoutcomes. To this end, individual values, borne from the extra-organisational context,are considered important alongside organisational ones for the developmentof SCS. Thus, the paper bridges perspectives on system characteristics, the individualand performance outcomes by offering a theoretical framework for futureresearch. It also extends studies on accounting as a social practice by emphasising the extra-organisational factors that influence internal accounting systems. Finally,it expounds upon the notion of social control as an individual-level phenomenon,necessary for sustainability. This expanded theoretical perspective also has implicationsfor practice by encouraging managers to think strategically about how systems are received from the perspective of the user. This can encourage more commitment to the sustainability cause from the outset, as well as over spatial and temporal boundaries.

This paper explores the characteristic type and use of sustainability control in small to medium sized enterprises (SMEs) through the implementation of an environ-mental management system, formally certified to ISO 14001. Through a qualita-tive study of 18 SMEs and seven auditors operating in Northern Europe, the paper draws on the theoretical framework of sustainability control as an analytical tool to explore the interplay between the formal design of control instruments and the operational use of these in practice for the studied SMEs. The study finds that both the formalised control instrument design and operational use of these controls by employees are characteristically formal and procedure based for ISO 14001 certifi-cation. Nevertheless, environmental management in daily tasks is also achieved by engaging non-managerial employees through their passionate interests and intrinsic motivations. In extension to previous sustainability control research, the findings emphasise that local level operator knowledge is not only the product of formalised control system design, and that external factors are also important for guiding employee behaviour in situ. This proposes that daily working tasks are achieved through a combination of organisational and extra-organisational individual values and beliefs about sustainability. Particularly, engaging non-managerial employees in SMEs through a combination of extrinsic and intrinsic rewards appears valuable for sustainable futures. Therefore, in addition to compliance-driven controls, SME owner-managers should ensure supportive structures where employees are given the autonomy to be creative and innovative.

Purpose: This study aims to address how the ISO 14001 standardisation and certification process improves substantive performance in small to medium-sized enterprises (SMEs) through the development of an environmental management control system (EMCS).

Design/methodology/approach: A qualitative cross-case interview design with those responsible for the implementation of an environmental management system (certified to ISO 14001) in SMEs is adopted to inductively “theorise” the EMCS.

Findings: The design and monitoring of environmental controls are often beyond the scope of the SMEs’ top management team and include extra-organisational dimensions such as the external audit and institutional requirements. This suggests more complex control pathways for SMEs to produce EMCS that primarily function as packages and are broader than the analytical level of the firm. Here, controlling for environmental performance exists at strategic and operational levels, as well as beyond the SMEs’ boundaries.

Practical implications: Various internal controls are put forward for SME owner-managers to meet environmental targets (e.g. gamification and interpersonal communication strategies). This builds upon a broader accountability perspective wherein formalised hierarchical control is only one route for ensuring sustainable action within the ISO 14001-certified SMEs.

Social implications: This study contributes to a more sustainable society through developing an understanding of how environmental sustainability is substantively managed by SMEs to improve performance for current and future generations.

Originality/value: This paper, to the best of the author’s knowledge, is one of the first to establish how SMEs control for environmental sustainability from empirically derived evidence. In doing so, it provides an example of the EMCS for the SME context.