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Manuscript type: Research paper Research aims: This study aims to examine the relationship between the formal management control system (MCS) on organisational performance and innovation. It also evaluates the role of leadership characteristics as the moderating variable between MCS and innovation. Design/Methodology/Approach: This study employs a...
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... that the measurement model passes the convergent and validity test, we then performed a structural model analysis to examine the hypotheses developed. The results from Figure 2 revealed that formal MCS was positively related to organisational performance (β=0.24, p<0.01) and innovation performance (β=0.59, ...
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Citations
... An activity's actual outcomes/outputs, how it is carried out, or the capacity to reach those results are all examples of performance. Performance, as defined by Nani and Safitri (2021), refers to the attainment of results which ensure that a firm's stakeholders get desired outcomes. Organizations that record-high returns and identify performance drivers at all levels of the business are more likely to succeed (Alsyouf et al., 2021). ...
... The classic 3Es (effectiveness, efficiency and economy) are a good analogy for performance (Amhalhal et al., 2021). According to Nani and Safitri (2021), organizational performance is defined as the capacity of an organization to achieve its objectives by using its resources efficiently and effectively. The capacity of an organization to fulfil its aims and objectives is referred to as its performance. ...
... As a result of their greater alignment with the entire business strategy, non-financial indicators are more successful in driving management performance. Employee productivity is the amount and quality of work completed concerning the resources consumed (Nani and Safitri, 2021). Having a competitive edge depends on an organization's ability to produce more. ...
This study examined the effect of moonlighting on organizational performance in the Nigerian banking sector. It adopted a survey design that allowed the researcher to collect only cross-sectional data from the respondents. The questionnaire was administered to the staff of five (5) different banks in Lagos and Ogun states to seek their opinions. The responses were analyzed using regression analysis. The results revealed that, most of the respondents had heard and experienced moonlighting at various points of their career in the banking sector and that moonlighting negatively impacts firm performance in terms of employees’ productivity, profitability, and dividend payment. The study recommends the need for policies to be put in place. Terms of policies must be incorporated in the employment contract for employees to know the consequences of breaching the contract. Finally, disciplinary action should be taken on the affected staff to serve as deterrent to others.
... When evaluating the impact of organizational culture on service innovation, most of the current literature considers it from a single cultural perspective [73][74][75]. It is evident that assessing the different single-factor effects of these impacts is crucial for advancing service innovation. ...
With the development of the service economy, the service-oriented transformation of the manufacturing industry has become a crucial strategy pursued by major manufacturing enterprises globally. They must constantly innovate their services and provide customers with comprehensive solutions to succeed in a dynamic market environment. Improving service innovation performance becomes a key element. Based on the service-dominant logic, this paper analyzes the organizational ambidextrous culture in the manufacturing industry’s service transformation. A theoretical model is established with ambidextrous culture as the independent variable, service innovation performance as the dependent variable, external collaboration and internal collaboration as the mediating variables, and environmental uncertainty as the moderating variable. This study examines how an ambidextrous culture affects service innovation in manufacturing companies based on data from firms engaged in service innovation. By using the structural equation modeling for hypothesis testing, SPSS and AMOS version 23.0 software for analyzing, the following conclusions are obtained: first, organizational ambidextrous culture has a significant positive impact on service innovation performance; second, external collaboration and internal collaboration play mediating roles in the relationship between ambidextrous culture and service innovation performance; third, environmental uncertainty positively moderates the relationship between ambidextrous culture, internal and external collaboration, and service innovation performance.
... While there is a consensus on the importance of partnering Energies 2023, 16, 7005 3 of 19 in operations management [25,26], there is limited research that systematically explains the causal relationship between partnering and the operations management of pumped storage power stations from the perspective of multi-energy complementarity, as well as how the performance of pumped storage power stations can be enhanced by partnering. Understanding the in-depth underlying causes to improve operations management of pumped storage power stations is crucial for integrating the resource optimization of all stakeholders involved in multi-energy complementarity [27,28]. Therefore, this study aims to establish and test a conceptual model, quantitatively investigating the causal relationships among partnership, operations management, and pumped storage power stations' performance. ...
Driven by China’s long-term energy transition strategies, the construction of large-scale clean energy power stations, such as wind, solar, and hydropower, is advancing rapidly. Consequently, as a green, low-carbon, and flexible storage power source, the adoption of pumped storage power stations is also rising significantly. Operations management is a significant factor that influences the performance of pumped storage power stations in various domains, including environmental protection, economic benefits, and social benefits. While existing studies have highlighted the importance of stakeholder partnering in operations management, a systematic exploration of the causal relationships between partnering, operations management, and the performance of pumped storage power stations—especially from a multi-energy complementarity perspective—remains untouched. This paper strives to shed light on the vital role of stakeholder partnering in augmenting the operations management and overall performance of pumped storage power stations, thereby contributing to China’s dual carbon goals. A comprehensive conceptual model was developed by reviewing the relevant literature to empirically examine the causal relationships among partnering, operations management, and power station performance, which was validated using data from the Liaoning Qingyuan Pumped Storage Power Station, which is the largest of its kind in Northeast China. The findings suggest: (1) Effective partnering among stakeholders, particularly with grid companies, significantly influences the operations management of pumped storage power stations, with deficiencies in partnering mainly attributed to the lack of effective communication channels and problem-solving mechanisms. (2) The level of operations management in China’s pumped storage power stations is relatively high, averaging a central score around 4.00 (out of a full score of 5) on operations management indicators. However, there is a need to concentrate on enhancing multi-energy complementarity coordination, digital management system development, and profitability. (3) Path analysis further unveils that partnering not only improves operations management but also boosts the performance of pumped storage power stations. These findings suggest a wide range of practical strategies for operations managers at pumped storage power stations to forge partnerships with stakeholders and integrate complementary resources, aiming to achieve excellence in performance.
... Salah satu alat organisasi yang penting untuk menunjang kinerja yang optimal dari sebuah perusahaan adalah dibutuhkannya suatu management control system (Nani & Safitri, 2021). MCS didefinisikan oleh (Anthony & Govindarajan, 2007) sebagai proses dimana manajer meyakini bahwa sumber daya telah diperoleh dan digunakan secara efektif dan efisien dalam mencapai tujuan organisasi. ...
This study aims to determine the effect of the management control system on organizational performance mediated by the management innovation variable, where the management control system is combined with two different control levers the enabling (beliefs and interactive) and the constraining (boundary and diagnostic), and management innovation which consists of four dimensions (new management practice, management process, organizational structure, and management technique). The method used in this research is quantitative. The research sample uses primary data by distributing questionnaires. There are 9 Regional Apparatus Organizations that are sampled in this study based on predetermined criteria (purposive sampling). Data analysis was performed by path analysis using the WarpPLS 7.0 program. The results showed that the management control system enabling and the management control system constraining have a positive effect on organizational performance. And management control system enabling and management control system constraining positive effect on management innovation Meanwhile, management innovation has a partial effect, where organizational structure has a negative effect on organizational performance and management techniques have a positive effect on organizational performance. Meanwhile, new management practices and management processes have no effect on organizational performance.
... Some other scholars argue that informal MCS encourages innovation, and formal MCS blocks excessive innovation that may hamper organizational performance (Bellora-Bienengrä ber et al., 2022). Others have found that formal MCS is a pre-condition for creating and implementing ideas (Nani and Safitri, 2021). These scholars suggest that most innovative firms use formal MCS systems extensively; therefore, a formal MCS system enhances innovativeness. ...
Purpose
This study aims to empirically examine the influence of management control systems (MCSs) on knowledge acquisition from innovation failure (KAFIF), which further impacts empowerment, creativity and organizational innovation. This study argues that enabling an MCS positively influences KAFIF, whereas controlling the use of an MCS negatively influences KAFIF. Further, KAFIF positively impacts empowerment, creativity and organizational innovation.
Design/methodology/approach
This study aims to create a comprehensive stimulus–organism–response (S-O-R) framework. This framework includes an MCS (belief, interactive, boundary and diagnostic) as a stimulus, KAFIF as an organism and creativity, empowerment and organizational innovation as responses. The data were gathered using an online survey administered to a sample of 321 employees working in India’s micro, small and medium enterprises and analyzed using partial least squares structural equation modeling.
Findings
The results indicate that there is no correlation between belief control and the acquisition of knowledge from the failure of innovation, interactive control has a positive association with KAFIF and boundary control has no relationship with KAFIF. Diagnostic control has a significant negative association with KAFIF. Further, this study found that KAFIF positively associates with empowerment, creativity and organizational innovation.
Originality/value
This study is among initial studies that examine the influence of MCSs on KAFIF, which impacts empowerment, creativity and organizational innovation. Further, it helps be one of the initial literature on studying KAFIF rather than innovation success.
... In addition, the implementation of budgetary control increases accountability among managers and employees since they will be well informed about their responsibilities as well as be motivated to work harder. The frequency of financial review and comparing the actual figures to the budgeted ones brings in transparency since everyone is informed of the part they have played towards the Company's financial health (Nani and Safitri, 2021) [22] . This accountability ensures that the employees have a sense of ownership, and they are always on the lookout for ways of coming up with solutions so that they do not exceed the set budgetary constraints. ...
... Organisations can benefit from having visionary leaders who can develop the potential of their workforce to gain a competitive advantage. According to Nani and Safitri (2021), a well-designed formal management control system can positively impact organisational performance and innovation. By providing a framework for decision-making, setting performance standards, and monitoring progress, a well-designed system can help organisations achieve their goals. ...
The research objective is to investigate the impact of knowledge management (KM) enablers and processes on the performance of Nigeria’s manufacturing sector. The poor performance in Nigeria’s public and private sectors has been linked to insufficient or non-existent KM implementation methods. Survey questionnaires were distributed to the members of Manufacturing Association of Nigeria. Of the 500 survey questionnaires distributed, 424 were returned correctly completed representing about 84% response rate. The data was analyzed using descriptive statistics and multi-regression analysis. The results show that KM enablers variables (management leadership, information technology, infrastructure, and organizational culture) and KM process variables significantly contribute to manufacturing performance except for knowledge application. The research adds to the general knowledge by shedding more light on the impact of KM enablers and processes for sustainable manufacturing from an African perspective . Also, it provides academic support for investing more resources in sustainable KM-based manufacturing in Nigeria.
... Estudios sobre precepciones de directivos sobre los sistemas de control de gestión en las empresas, han tenido distintos enfoques, se encuentra en países desarrollados que los directivos más involucrados y participativos en el desarrollo de la estrategia empresarial permiten mejores sistemas de control de gestión, asimismo estos sistemas inciden en mejores procesos de desarrollo de estrategias como es el caso de la innovación, como el caso de empresas inglesas y portuguesas (Collier et al., 2004;Gonçalves y Gaio, 2021;Tapinos, 2011). Estudios en países en vías de desarrollo como Malasia e Indonesia los sistemas de control de gestión permiten desarrollar mejor las estrategias, pero están más enfocados a control de estrategias financieras, presentan una falta de políticas de evaluación de desempeño, liderazgo por la dirección y la necesidad de un buen diseño de dichos sistemas (Ayoup et al., 2012;Jariya y Haleem, 2021;Nani y Safitri, 2021). Finalmente, en Latinoamérica también se encuentra un enfoque financiero de control de gestión, que requiere un cambio de la cultura empresarial, apoyo de la dirección para el desarrollo de mejores objetivos estratégicos y afrontar las incertidumbres de las decisiones gerenciales como estudios en México, Chile y Argentina (Almazán et al., 2013;Müller, 2019;Porporato y García, 2011). ...
Las empresas han presentado una evolución en los sistemas de control de gestión aplicados, los cuales les permiten definir objetivos estratégicos y gestionar información a través de herramientas más avanzadas, tales como analítica de datos y Enterprise Resource Planning (ERP). Este estudio, tiene como objetivo conocer el perfil tanto de los controllers responsables de control de gestión como de las empresas peruanas que cuentan con tales sistemas, y describir los sistemas y herramientas de control aplicados, así como conocer la percepción de los controllers sobre su importancia y sus factores. Esta investigación cuantitativa de alcance explicativo se realizó mediante una encuesta a controllers de empresas peruanas, la que permitió un análisis descriptivo de los sistemas de control aplicados, así como, un análisis de factores de dichas percepciones. Los resultados señalan que los controllers mantienen la aplicación de sistemas de control tradicionales como análisis financiero, de costos y presupuestos en mayor medida que los sistemas basados en aspectos estratégicos como el Balanced Scorecard (BSC). La implementación de analítica de datos y ERP, no es una práctica muy desarrollada y es un aspecto de mejora. Las empresas con mayor facturación, con departamentos de control de gestión, planeamiento estratégico, y con mayor experiencia presentan una mayor valoración hacia la importancia del control de gestión.
... A resource can be said to have a competitive advantage if it meets the following criteria: (a) allow the company to capture various business opportunities and overcome various challenges, (b) have their own uniqueness, difficult to obtain in the market and owned only by a few business players, and (c) can be utilized to provide benefits for the company. Resource-Based Theory explains that the internal resources owned by the company (both tangible and intangible) affect the company's performance which will ultimately increase the value of the company (Nani & Safitri, 2021). In addition, one form of intangible resources owned is intellectual capital. ...
Purpose – The paper aims to clarify the unclear relationship between management accounting information systems and SME business performance by having intellectual capital as mediating variable. This will expand the domain of management accounting information usage from SME’s perspective.
Design/methodology/approach – The paper used a descriptive study using the close-ended questionnaire distributed to 428 SMEs in East Java Region. The data were complemented by statistical analysis using SMART PLS to test the mediation role of intellectual capital.
Findings – The paper provided empirical evidence that intellectual capital plays as a quasi mediating for management accounting information system and business performance relationship. This encouraged SME to optimize their IT usage to maximize the benefit of implementing MAIS.
Research limitations/implications – Since management accounting system needs for business varied, future study needs to consider the level of IT usage. Therefore, future researchers are encouraged to investigate how to set the usage level.
Practical implications – The paper included implications for the development of higher level of IT usage, such as management accounting information system to gain the benefits, that is increased business performance.
Originality value – This paper filled the gap in IT usage from SMEs’ perspective by expanding the role of intellectual capital on the relationship of management accounting information systems on business performance.
... Table 3 demonstrates the theory employed in these identified articles. As shown in Table 3, the natural resource-based view was the most popular theory employed by researchers to explain their studies [11,12,14,23,[26][27][28][29][30][31][32][33][34]. Other theoretical perspectives also were found to be used, such as contingency theory [1,10,13,35,36], stakeholder theory [11,23,37], institutional theory [11,27,29,33,37,38], natural resource orchestration perspective [17,31,39], and cognitive-behavioral theories [40]. ...
... The theory suggests that the organizational ability to generate rent-earning resources and capabilities leads to a competitive advantage and highlights the limited scope of the resource-based view of the firm to explain the competitive advantage gained when the organization interacts with the natural environment. [11,12,14,23,[26][27][28][29][30][31][32][33][34]43] Contingency Theory ...
Sustainable development is becoming increasingly popular in all fields and the importance of sustainability and business issues will grow. Despite the increase in scholarly attention paid to improving organizational sustainability performance, such as Management Control Systems (MCS) and Environmental Management Accounting (EMA), few studies have been conducted on the relationship between MCS and EMA, with no aggregation of findings and knowledge. To fill this void, this study conducted a systematic literature review of the MCS and EMA in the field of sustainability. A comprehensive search was conducted for journal articles that addressed MCS and EMA issues in the context of sustainability. Considering that EMA and MCS are more widely used in manufacturing, this study focuses on the manufacturing industry. Based on rigorous inclusion and exclusion criteria, 43 journal articles were selected for the final analysis. The bibliometric data from the identified studies, their theoretical and methodological approaches, research themes, and research backgrounds were analyzed in this review. As a result, this study identifies existing gaps in the current literature, provides directions for the organization to research internal systems’ interactions and suggests future research directions with specific research agendas.
