Creating Shared Value as a management control tool - A case study of control mechanisms in inter-organizational relationships

Abstract: This thesis aims to investigate what impact a Creating Shared Value strategy has on inter-organizational relationships (IORs). More specifically, the study seeks to understand the impact of CSV as a management control tool when structuring IORs and the control mechanisms that govern the relationships. This is conducted by performing a case study where a two-year CSV project, initiated by the Nordic Nestlé coffee brand Zoégas, serves as our empirical data analyzed. The framework developed by Dekker (2004) has been used to analyze the impact of Nestlé's CSV strategy on IORs. Our findings indicate that letting the CSV strategy influence the applied control mechanisms governing the IOR, the underlying value-appropriation concerns are lowered. For this to hold the coordination requirements need to be managed. The results show that Nestlé's CSV initiatives also handle these requirements by setting a direction for stakeholders in the value chain. However, for some price mechanisms to work a common direction for the whole market is needed. Similarities were here identified with the theories developed by Miller & O'Leary (2007). This thesis provides a good illustration of the impact of CSV, for future management control research to build upon.