There were still contradictory results from earlier research on the relationship between organizational innovation, performance, and management control systems (MCS). In order to account for these ...contradictory results, future studies ought to concentrate on the empirical analysis of Simon's MCS theory. The purpose of the study was to assess the mediation and moderation model in relation to performance, innovation, and MCS. The study intends to broaden the scope by employing a more thorough definition and measurement of research variables. Because the Partial Least Square (PLS) can concurrently assess the existence of a dual dependency relationship of a latent variable, the study used PLS to test the hypothesis. The mediated hypothesis which holds that MCS indirectly affects performance through innovation seems to be supported by these data. All things considered, this study contributes to the understanding of the ambiguous and contradictory conclusions of earlier studies that examined the connection between MCS, innovation, and performance.
This study aims to investigate if the quality of sustainability reporting is particularly influenced by a company’s commitment and approach to relevant environmental, social, and governmental (ESG) ...factors. Companies that seriously implement good sustainability reporting are likely to produce more detailed, relevant, and measurable ESG practices. The sample criteria were non-financial sector companies that had completed sustainability reports. This study collected 430 pieces of data from 215 companies. Data were collected from the 2021-2022 sustainability reports. The results show that ESG has a positive and significant effect on green innovation, investor sentiment, and sustainability reporting, and green innovation has a significant effect on sustainability reporting. However, investor sentiment does not significantly mediate the relationship between ESG and sustainability reporting. This study can help companies understand the factors that contribute to sustainability reporting. The limitation of this study is the development of theoretical models to anticipate the controversial debate behind the effect of ESG. Future research can combine and develop theoretical models on ESG and environmental uncertainty, which refers to the different, unpredictable, and constantly changing nature of the environment in which organizations operate. Environmental uncertainty can pose risks to organizations, including risks associated with supply chain disruptions and regulatory changes.
Several models have been developed to predict financial difficulties and corporate bankruptcy. In this research various models were employed, including the Altman model (referred to as the Z-Score), ...the Springate model (known as the S-Score), the Zmijewski model (designated as the X-Score), and the Grover model (referred to as the G-Score). These techniques serve the purpose of evaluating the likelihood of encountering financial difficulties, which in turn determines the probability of PT Garuda Indonesia (Persero) Tbk going bankrupt. The study utilized secondary data sourced from financial statements spanning the years from 2020 to 2022. The application of the Altman model for bankruptcy prediction revealed that PT Garuda Indonesia (Persero), Tbk experienced financial distress throughout the period from 2020 to 2022. According to the Springate model, the company was in a state of distress and declared bankruptcy in 2020 and 2022, while 2021 fell into a grey area. The Zmijewski model indicated that the company was on the brink of bankruptcy, with financial difficulties and a potential risk of bankruptcy within the next three years. Grover's model predicted bankruptcy for the company in 2020 and 2022, but indicated safety in 2021. Notably, the Taffler model emerged as the most accurate in forecasting bankruptcy, boasting a 100% accuracy rate with no errors. Meanwhile, the Zmijewski model achieved an 81.25% accuracy rate with an error rate of 18.75%, and the Springate model exhibited the lowest accuracy in bankruptcy prediction, scoring only 12.50% accuracy with an error rate of 87.50%.
This research delves into the intricate dynamics of sustainable financial performance, driven by the interplay between Sustainable Management Control Systems (SMCS) and Eco-Innovation. Additionally, ...it evaluates the pivotal mediating roles of Supply Chain Management (SCM) and Digital Adaptability within this relationship, specifically within the context of Indonesian companies. Employing a survey methodology via carefully designed questionnaires, responses were collected from managerial representatives of the companies. The results underscore the significance of most hypotheses, revealing a notable influence of SMCS and eco-innovation on sustainable financial performance. However, some hypotheses regarding the mediating role of SCM and digital adaptability exhibit mixed outcomes. These findings emphasize the essential roles of SCM and digital adaptability in amplifying the effects of SMCS and eco-innovation on sustainable financial performance. Nevertheless, the intricate interdependencies suggest the presence of other influential factors affecting the relationship between digital adaptability and sustainable financial performance, warranting further exploration. The study's limitations include its focus on Indonesian organizations, reliance on self-reported data with response bias potential, cross-sectional design lacking causality establishment, and unexplored alternative mediating variables. This study enriches managerial decision-making and contributes valuable insights to sustainability management, especially in Indonesia, opening new avenues for academic research and inquiry.
Company value is one of the most important indicators to increase the company's competitiveness in the midst of very tight business competition. This study aims to determine the effects of ...Environmental Cost, Environmental Disclosure, Environmental Performance on Company Value with an Independent Board of Commissioners as Moderation partially and simultaneously. This research was conducted on the Indonesia Stock Exchange in 2018-2021. Purposive sampling was used as the sampling method and 14 companies were obtained. Multicollinearity test and heteroscedasticity test were used as the classical assumption test. Eviews 9 software with panel data regression analysis was used to test the hypothesis. Based on the results of the study, it was found that Environmental Costs have a negative effect on Company Value, Environmental Disclosure has no effects on Company Value, Environmental Performance has no effects on Company Value, Environmental Costs have negative effects on Value Companies with an Independent Board of Commissioners as Moderation, Environmental Disclosure has no effect on Company Value with an Independent Board of Commissioners as Moderation, and Environmental Performance has no effects on Company Value with an Independent Board of Commissioners as Moderation.
This study seeks to supply empirical evidence for how board characteristics influence corporate governance compliance in the Indonesian banking industry. Corporate governance compliance level ...represents a company's actions to fulfill regulatory obligations that aim to protect the public from potential investment losses in the banking industry. This research was conducted by analyzing the influence of board characteristics, specifically how a board of commissioners' institutions and their instruments affect corporate governance compliance. The entire banking industry, which was listed on the Indonesia Stock Exchange from 2010 to 2015, was employed as the population for this research. Purposive sampling was used as the sampling technique, resulting in 195 observations. To test this study's hypotheses, multiple regression was applied as the data analysis method. The results revealed that the size of the board of commissioners, the proportion of independent commissioners, the experience of commissioners, and the size of the audit committee were factors that encouraged management in the banking industry to improve their firms' corporate governance compliance. This indicates that monitoring from the board acts as an effective mechanism for reducing information asymmetry. This research also proves that open innovation following regulations can increase compliance with laws.
This study aimed to investigate the effect of management control system enabling with capabilities that can improve the performance of SMEs. This study was conducted among the managers of SMEs of ...local food products in Banten Province, Indonesia. The number of respondents in this study was 85 SME managers. This study used structural equation modeling as an analytical tool and PLS Smart software to process the data. The findings of this study show that there was a positive effect of the use of enabling management control system (MCS) on creativity; there was a positive and significant effect of the use of Enabling MCS on cost efficiency; there was a positive and significant effect of the use of Enabling MCS on performance; there was a positive and significant effect of creativity on innovation; there was a positive and significant effect of cost efficiency on performance; and finally there was a positive and significant effect of innovation on performance. The implication of this study is that it can provide a choice of control system for SME management, which up to now still uses conventional control system. The use of Enabling MCS can create a capability for the managers of SMEs of local food products to win the competition. This is due to the uniqueness of Enabling MCS that can increase creativity and also cost efficiency.
Hubungan antara sistem pengendalian manajemen (SPM) dan strategi tidak hanya fokus pada jenis SPM yang digunakan, melainkan pada cara manajer dalam menggunakan SPM. Penelitian ini menyelidiki ...pengaruh penggunaan diagnostik dan interaktif SPM pada hubungan strategi dan kinerja organisasi. Sifat dari hubungan antara SPM, strategi dan kinerja tergantung pada konteks organisasi. Penelitian yang dilakukan mengenai SPM dan strategi di negara-negara berkembang jumlahnya terbatas. Penelitian kali ini merupakan penelitian empiris pertama yang dilakukan, yang mengeksplorasi hubungan antara penggunaan SPM, strategi kompetitif dan kinerja organisasi berdasarkan data yang diperoleh dari perusahaan industri manufaktur di Provinsi Banten. Temuan penelitian mendukung pendapat bahwa keduanya (penggunaan diagnostik dan interaktif) memoderasi hubungan antara strategi bisnis dan kinerja. Responden penelitian ini adalah 40 eksekutif manajer yang bekerja di perusahaan industri manufakutr di Provinsi Banten. Dalam penelitian ini analisis data menggunakan pendekatan Warp Partial Least Square (PLS) dengan menggunakan Solfware Warp PLS versi 2.00. Temuan lain penelitian ini adalah efek moderat yang diciptakan oleh penggunaan diagnostik SPM lebih signifikan ketika strategi kepemimpinan biaya yang diterapkan untuk kinerja. Tidak terdapat bukti yang mendukung eksklusifitas proposisi Porter dari strategi bisnis untuk kinerja yang lebih baik. Akibatnya, hasil penelitian ini mempunyai dampak penting bagi praktek manajemen dan literatur akademik.The relationship between management control systems (MSS) and the strategy does not only focus on the type of SPM is used, but on how managers in using SPM. This study investigated the effect of the use of diagnostic and interactive SPM on the relationship strategy and organizational performance. The nature of the relationship between SPM, strategies and performance depends on the organizational context. Research conducted on the SPM and strategies in developing countries is limited. The present study is the first empirical research conducted, which explores the relationship between the use of SPM, competitive strategy and organizational performance based on data obtained from the manufacturing companies in the province of Banten. The research findings support the view that both (the use of diagnostic and interactive) moderate the relationship between business strategy and performance. Respondents are 40 executive managers working in industry companies manufakutr in Banten Province. In this study, data analysis using Warp approach Partial Least Square (PLS) using PLS Warp Solfware 2:00 version. Another finding of this study is a moderate effect created by the use of diagnostic SPM is more significant when the cost leadership strategy that is applied to the performance. There is no evidence to support the proposition Porter exclusivity of the business strategy for better performance. Consequently, the results of this study have important implications for management practice and academic literature.
This study examines the effect of independent commissioners and the Audit Committee on internal control disclosure and its implications for earnings management in the banking industry listed on the ...Indonesia Stock Exchange for the period 2016–2018. In this study, a purposive sampling technique was used, combined with two multiple regression analysis models. The final sample for this study comprised 30 companies over the three years of observation, such that there were 90 observations in total. This study indicates that independent commissioners, as measured by their composition, do not affect the disclosure of internal control. However, as measured by the number of members, the Audit Committee had a positive effect on internal control disclosures. This study also indicates that the disclosure of internal control as measured by the Internal Control Disclosure index affects reducing the negative practice of earnings management. This study proves that the Audit Committee’s role is very dominant in assisting the Board of Commissioners in supervising internal control. This has implications for reducing earnings management practices. However, the Independent Commissioner’s role in the Indonesian banking industry has not been optimal in carrying out the supervisory function in this study. KCI Citation Count: 1
This study examines the effect of independent commissioners and the Audit Committee on internal control disclosure and its implications for earnings management in the banking industry listed on the ...Indonesia Stock Exchange for the period 2016-2018. In this study, a purposive sampling technique was used, combined with two multiple regression analysis models. The final sample for this study comprised 30 companies over the three years of observation, such that there were 90 observations in total. This study indicates that independent commissioners, as measured by their composition, do not affect the disclosure of internal control. However, as measured by the number of members, the Audit Committee had a positive effect on internal control disclosures. This study also indicates that the disclosure of internal control as measured by the Internal Control Disclosure index affects reducing the negative practice of earnings management. This study proves that the Audit Committee's role is very dominant in assisting the Board of Commissioners in supervising internal control. This has implications for reducing earnings management practices. However, the Independent Commissioner's role in the Indonesian banking industry has not been optimal in carrying out the supervisory function in this study.
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