Examining the Impact of Organizational Culture and External Environmental Uncertainty on Management Control Systems
DOI:
https://doi.org/10.55208/jebe.v19i2.06Keywords:
Organizational Culture, External Environmental Uncertainty, Management Control SystemAbstract
This study aims to analyze the influence of organizational culture and external environmental uncertainty on management control systems (MCS) in companies in West Java. The dynamics of business competition and environmental changes demand that companies have adaptive and responsive management control systems. The research employs a quantitative approach with 72 respondents representing various managerial levels within companies in West Java. Data collection techniques involved surveys using both physical distribution and online (Google Forms), while data analysis utilized Structural Equation Modeling based on Partial Least Squares (SEM-PLS). The results indicate that organizational culture significantly influences the implementation of management control systems. Similarly, external environmental uncertainty also proves to affect management control systems. These findings reinforce contingency theory, which emphasizes the importance of aligning internal and external organizational factors to determine the effectiveness of management control systems. The practical implications of this research suggest that companies in West Java should strengthen the organizational values that encourage openness, innovation, and shared commitment, thereby enhancing the effectiveness of management control systems. Additionally, companies need to improve their adaptability to external environmental changes, including market dynamics, regulations, and technological developments. This study is expected to contribute theoretically to the literature on the impact of organizational culture and environmental uncertainty on the effectiveness of management control systems, and serve as a reference for practitioners to enhance company competitiveness.
References
Alexy, O. (2022). How flat can it get? From better at flatter to the promise of the decentralized, boundaryless organization. Journal of Organization Design, 11(1), 31-36. https://doi.org/10.1007/s41469-022-00110-0.
Arif, M. R., Ishak, A. A. A., Tamrin, T., & Jayadi, M. (2024). Exploring control environment practices in local government-owned companies. EKUITAS (Jurnal Ekonomi dan Keuangan), 8(3), 418-433.
Arif, T. R. (2025). Contingency relationship between perceived environmental uncertainty and management control systems: Implications for innovation and performance. Journal of Accounting & Organizational Change, 1-24. https://doi.org/10.1108/JAOC-10-2024-0322
Baird, K., Su, S., & Munir, R. (2019). Levers of control, management innovation and organisational performance. Pacific Accounting Review, 31(3), 358-375. https://doi.org/10.1108/PAR-03-2018-0027
Castelo, S. L., & Gomes, C. F. (2024). The role of performance measurement and management systems in changing public organizations: An exploratory study. Public Money & Management, 44(5), 399-406. https://doi.org/10.1080/09540962.2023.2204400
Cavallo, (2024) Raksasa Mobil Dunia Mau Bangkrut, Tutup 3 Pabrik-PHK Puluhan Ribu. https://www.cnbcindonesia.com/news/20241103114121-4-585188/raksasa-mobil-dunia-mau-bangkrut-tutup-3-pabrik-phk-puluhan-ribu
Cendrayani, Y., & Sidharta, I. (2020). The Influence of Organizational Culture on Affective and Normative Commitment to Employees in The Construction Sector in Bandung. Jurnal Ekonomi, Bisnis & Entrepreneurship (e-Journal), 14(1), 24-29. https://doi.org/10.55208/j3r06y06
Choiri, C., Khasanah, U., Zainab, Z., & Al'Asqolaini, M. Z. (2023). Application of management control systems and leadership style on managerial performance. International Journal of Applied Finance and Business Studies, 11(3), 680-687.
Chowdhury, A., & Shil, N. C. (2020). Conceptualising Management Control Systems: illustrative evidence from literature on the Australian business sector. Vezetéstudomány/Budapest Management Review, 51(11), 51-63. https://doi.org/10.14267/VEZTUD.2020.11.05
Curtis, E., Lillis, A. M., & Sweeney, B. (2017). Simons’ levers of control framework: commensuration within and of the framework. In Advances in Management Accounting (pp. 87-121). Emerald Publishing Limited. https://doi.org/10.1108/S1474-787120170000028004
Effran; (2024) 9 Pabrik Tekstil di Indonesia yang Bangkrut pada 2024 dan Terancam. https://lampost.co/ekonomi-dan-bisnis/9-pabrik-tekstil-di-indonesia-yang-bangkrut-pada-2024-dan-terancam-terimbas-sritex/
El Farabi, M. N. (2021). Ketidakpastian Lingkungan Organisasi Berimplikasi Terhadap Pemilihan Sistem Pengendalian Manajemen. JABE (Journal of Applied Business and Economic), 7(2), 225-238. http://dx.doi.org/10.30998/jabe.v7i2.7729
Eriani, I. D., & Fanani, Z. (2020). Ketidakpastian lingkungan dan kinerja manajerial: Peran mediasi sistem akuntansi manajemen. Jurnal Reviu Akuntansi dan Keuangan, 9(3), 1–13. https://doi.org/10.22219/jrak.v9i3.8709 E-Journal UMM
Einhorn, S., Fietz, B., Guenther, T. W., & Guenther, E. (2024). The relationship of organizational culture with management control systems and environmental management control systems. Review of Managerial Science, 18(8), 2321-2371. https://doi.org/10.1007/s11846-023-00687-0
Fikriansyah ilham (2024) 4 Perusahaan Besar yang Bangkrut di Indonesia dan Penyebabnya detikFinance https://finance.detik.com/berita-ekonomi-bisnis/d-7545244/4-perusahaan-besar-yang-bangkrut-di-indonesia-dan-penyebabnya 18 Sep 2024 08:15 WIB
Farras, M. F., Hadian, D., & Hardiyana, A. (2024). The Influence of Transformational Leadership and Organizational Culture on Employee Performance: Study of One The Companies Operating in The Field of Publishing and Book Trading in The City of Bandung. Acman: Accounting and Management Journal, 4(1), 20-28. https://doi.org/10.55208/aj.v4i1.128
Felício, T., Samagaio, A., & Rodrigues, R. (2021). Adoption of management control systems and performance in public sector organizations. Journal of Business Research, 124, 593-602. https://doi.org/10.1016/j.jbusres.2020.10.069
Hartmann, F., Kraus, K., Nilsson, G., Anthony, R., & Govindarajan, V. (2020). EBOOK: Management Control Systems, 2e. McGraw Hill.
Harrison, M., & McMillan, D. (2021). Strategic agility in times of market uncertainty: How firms cope with change. Journal of Business Research, 145, 101-110. https://doi.org/10.1016/j.jbusres.2021.01.027
Hermawan, M., & Putri, J. T. (2018). Can Management Control Systems be applied in SME? A case study of small manufacturing in Indonesia. The Indonesian Journal of Accounting Research, 21(2). http://doi.org/10.33312/ijar.359
Jukka, T. (2023). Does business strategy and management control system fit determine performance?. International Journal of Productivity and Performance Management, 72(3), 659-678. https://doi.org/10.1108/IJPPM-11-2020-0584
Krishnan, C. S. N., Ganesh, L. S., & Rajendran, C. (2022). Management accounting tools for failure prevention and risk management in the context of Indian innovative start-ups: a contingency theory approach. Journal of Indian Business Research, 14(1), 23-48. https://doi.org/10.1108/JIBR-02-2021-0060
Laurie Goldman (2024). Biang Kerok Tupperware Terancam. https://www.cnnindonesia.com/ekonomi/20240920181224-92-1146635/biang-kerok-tupperware-terancam-bangkrut
Minkov, M., & Kaasa, A. (2021). A test of Hofstede's model of culture following his own approach. Cross Cultural & Strategic Management, 28(2), 384-406. https://doi.org/10.1108/CCSM-05-2020-0120
Möller, K., Schäffer, U., & Verbeeten, F. (2020). Digitalization in management accounting and control: an editorial. Journal of management control, 31(1), 1-8. https://doi.org/10.1007/s00187-020-00300-5
Osma, B. G., Gomez-Conde, J., & Lopez-Valeiras, E. (2022). Management control systems and real earnings management: Effects on firm performance. Management accounting research, 55, 100781. https://doi.org/10.1016/j.mar.2021.100781
Phan, T., Baird, K., Bhuyan, M., & Tung, A. (2023). The associations between management control systems, organisational capabilities and performance. Journal of Management Control, 34(4), 435-462. https://doi.org/10.1007/s00187-024-00365-6
Pranoto, (2024) BUMN Farmasi Terjerat Pinjol, Pengamat Pertanyakan Mekanisme Pengawasan. https://www.voaindonesia.com/a/bumn-farmasi-terjerat-pinjol-pengamat-pertanyakan-mekanisme-pengawasan/7663350.html
Prastomiyono Ogi, (2024) Ada 7 Asuransi Bermasalah Masuk Pengawasan Khusus, Ini Penyebabnya. https://www.cnbcindonesia.com/market/20240404092812-17-528175/ada-7-asuransi-bermasalah-masuk-pengawasan-khusus-ini-penyebabnya
Presti, C. (2021). Toward a Contemporary Concept of Management Control. In Integrating Performance and Risk in a Management Control System: A Framework to Understand Aspects and Directions of Integration (pp. 9-41). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-030-87082-9_2
Sarkhani Ganji, H. R., Najafi-Moghadam, A., & Sarraf, F. (2022). The impact of management accounting systems on development of intellectual capital dimensions by emphasis on business intelligence in Iran capital market. International Journal of Finance & Managerial Accounting, 7(26), 133-143. https://doi.org/10.30495/ijfma.2022.59710.1609
Sekaran, U., & Bougie, R. (2020). Research Methods for Business: A Skill Building Approach (8th ed.). Wiley.
Shadiq, (2024). BUMN Farmasi Terjerat Pinjol, Pengamat Pertanyakan Mekanisme Pengawasan. https://www.voaindonesia.com/a/bumn-farmasi-terjerat-pinjol-pengamat-pertanyakan-mekanisme-pengawasan/7663350.html
Schaefer Thomas,2024. Raksasa Mobil Dunia Mau Bangkrut, Tutup 3 Pabrik-PHK Puluhan Ribu. https://www.cnbcindonesia.com/news/20241103114121-4-585188/raksasa-mobil-dunia-mau-bangkrut-tutup-3-pabrik-phk-puluhan-ribu
Sinha, V. K., Derichs, D., & Malmi, T. (2024). Internet-based technologies, accounting processes, and management control systems. In Research Handbook on Accounting and Information Systems (pp. 265-287). Edward Elgar Publishing. https://doi.org/10.4337/9781802200621.00028.
Speklé, R. F., & Verbeeten, F. H. (2014). The use of performance measurement systems in the public sector: Effects on performance. Management accounting research, 25(2), 131-146. https://doi.org/10.1016/j.mar.2013.07.004
Tyasari, I., Arshad, I., & Setiyowati, S. W. (2024). Management control systems package, corporate governance, and SME’s performance in the context of Malaysia. BISMA (Bisnis dan Manajemen), 261-296. https://doi.org/10.26740/bisma.v16n2.p261-296
Yeliandriani (2024) BUMN Farmasi Terjerat Pinjol, Pengamat Pertanyakan Mekanisme Pengawasan. https://www.voaindonesia.com/a/bumn-farmasi-terjerat-pinjol-pengamat-pertanyakan-mekanisme-pengawasan/7663350.html
Wahyudi, I., Alim, M. N., Malia, E., & Dewi, I. O. (2021). Budaya organisasi dan sistem pengendalian manajemen pada perguruan tinggi. Kabillah: Journal of Social Community, 6(2), 126-140. https://doi.org/10.35127/kabillah.v6i2.146
Downloads
Additional Files
Published
Issue
Section
License
Copyright (c) 2025 R. Sriristanti, Irwan Sutirman Wahdiat, Krisdiana (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
