Table 3. MCSs adaptation under binding... | Emerald Publishing

Table 3.

MCSs adaptation under binding sustainability regulation (the LkSG)

Control type	Integration mechanism	key adaptations	Adaptation outcomes	Dominant adaptation logic
Planning controls	Technical integration	Risk-based supplier segmentation; Use of ESG-aligned digital planning tools; Integration of regulatory foresight into long-term planning	Sustainability embedded into planning routines through ERP systems and data-informed decision frameworks; foresight used to align compliance with future ESG targets	Hybrid (coercive isomorphism + contingency-based)
Administrative controls	Organizational integration	Assignment of LkSG responsibilities via distributed or dedicated models; revision of onboarding protocols and supplier codes of conduct	Compliance operationalized through formalized responsibilities, procedural standardization and departmental collaboration mechanisms	Hybrid (coercive isomorphism + contingency-based)
Cybernetic controls	Technical integration	Incorporation of ESG indicators into KPI frameworks; activation of real-time feedback loops via digital monitoring tools; formalization of grievance mechanisms within compliance systems	Digitally codified performance metrics institutionalized for real-time oversight and enforcement; broad convergence in cybernetic systems across firms	Uniform (coercive isomorphism)
Cultural controls	Cognitive integration	Training and communication to normalize sustainability thinking; framing sustainability as central to identity and purpose; collaborative supplier engagement grounded in transparency and mutual learning	Shared sustainability values internalized through symbolic framing, leadership endorsement and interactive learning processes within and beyond the organization	Uniform (normative isomorphism)
Reward and compensation controls	Organizational and cognitive integration	Incorporation of ESG responsibilities into employee performance targets; rejection of financial incentives for supplier compliance; selective use of non-monetary incentives to encourage supplier alignment	Internally, ESG responsibilities reinforced through HR-linked performance measurement and reward systems; Externally, suppliers’ behavior influenced through relational and reputational mechanisms	Hybrid (normative isomorphism + contingency-based)

Control type	Integration mechanism	key adaptations	Adaptation outcomes	Dominant adaptation logic
Planning controls	Technical integration	Risk-based supplier segmentation; Use of ESG-aligned digital planning tools; Integration of regulatory foresight into long-term planning	Sustainability embedded into planning routines through ERP systems and data-informed decision frameworks; foresight used to align compliance with future ESG targets	Hybrid (coercive isomorphism + contingency-based)
Administrative controls	Organizational integration	Assignment of LkSG responsibilities via distributed or dedicated models; revision of onboarding protocols and supplier codes of conduct	Compliance operationalized through formalized responsibilities, procedural standardization and departmental collaboration mechanisms	Hybrid (coercive isomorphism + contingency-based)
Cybernetic controls	Technical integration	Incorporation of ESG indicators into KPI frameworks; activation of real-time feedback loops via digital monitoring tools; formalization of grievance mechanisms within compliance systems	Digitally codified performance metrics institutionalized for real-time oversight and enforcement; broad convergence in cybernetic systems across firms	Uniform (coercive isomorphism)
Cultural controls	Cognitive integration	Training and communication to normalize sustainability thinking; framing sustainability as central to identity and purpose; collaborative supplier engagement grounded in transparency and mutual learning	Shared sustainability values internalized through symbolic framing, leadership endorsement and interactive learning processes within and beyond the organization	Uniform (normative isomorphism)
Reward and compensation controls	Organizational and cognitive integration	Incorporation of ESG responsibilities into employee performance targets; rejection of financial incentives for supplier compliance; selective use of non-monetary incentives to encourage supplier alignment	Internally, ESG responsibilities reinforced through HR-linked performance measurement and reward systems; Externally, suppliers’ behavior influenced through relational and reputational mechanisms	Hybrid (normative isomorphism + contingency-based)

Source(s): Authors’ own work