Design Appropriateness of Strategy Map Frameworks, Relations Underlying Early-stage Business Models, and Narrative Tests

The objectives of this research are threefold: i) assessing the design appropriateness of a strategy map framework, considering an organization’s unique strategic context, ii) identifying the types of relations existing in early-stage business models – those that are developed or have gone through a major modification recently, and iii) understanding the technique(s) that might be used to perform an effective narrative test of an early-stage business model. By using the constructive research approach (CRA) – a strong form of interventionist or action research, this study was conducted in a large energy and environmental services provider in New Zealand. The management control systems (MCSs) literature has long recognized the importance of the appropriate design of MCS. Contingency-based research suggests that MCS design should be tailored to the organization’s unique strategic context. Although the strategy map is one of the most recommended management tools to execute strategy and can offer numerous benefits to organizations, little empirical research has been done in the area of assessing the design appropriateness of a strategy map framework, considering an organization’s unique strategic context. The current study develops 14 principles for developing a customized strategy map framework. These design principles are mainly guided by the strategy map literature, general accounting, management, and psychology literature, and this study’s field observations. To understand the appropriateness of the case organization’s strategy map framework, it was assessed against these 14 principles. The assessment revealed several problematic areas, which were also acknowledged by the company members. Further, the findings of this study challenge the conventional notion that cause-and-effect relations are a necessary element of every business model. Rather, this study finds finality and logical relations as a substitute for cause-and-effect relations in the case organization’s business model. The current study argues that this phenomenon is likely to be common in other business models, especially in service-oriented organizations, and that managers build these types of finality and logical relation-based business models intentionally. The findings also suggest that abductive reasoning is a useful technique to perform an effective narrative test of an early-stage business model to ensure that the underlying story in the business model has narrative coherence right from the beginning. Overall, this research adds our understanding of and extends the literature on assessing the appropriateness of a strategy map framework, considering an organization’s unique strategic context and different types of relations that might exist in an early-stage business model and the technique that might be used to perform an effective narrative test of an early-stage business model. This thesis concludes discussing the main insights that the findings and analyses bring to the existing literature and suggesting future research avenues