The Moderating Effect of Management Control Systems on the Strategy-Performance Relationship in Indonesian Construction Companies

Zaitul, Zailtul (2021) The Moderating Effect of Management Control Systems on the Strategy-Performance Relationship in Indonesian Construction Companies. The Moderating Effect of Management Control Systems on the Strategy-Performance Relationship in Indonesian Construction Companies, 1 (1). pp. 30-38.

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Abstract

This study is aimed to explore the effect of Management Control System (MCS) on the relationship between business strategy and construction company performance. Most of prior studies on business strategy and management control system interaction have been done using non-construction companies. This study uses seventy three (73) construction companies in Padang city (Indonesia). The data is gathered through survey using questionaire. Moderated Regression Analysis (MRA) is employed using SPSS software. Furthermore, this paper finds that when management control system include in the model, there is an increasing in model feasibility and power. However, management control system does not play as moderating variable between business strategy and construction company performance. This finding is inconsistent to prior studies concluding that management control system strengthens the relationship between strategy and performance. Keywords: Business Strategy; Management Control System; Performance.

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