Adopting management control systems through CSR strategic integration and investigating its impact on company performance: evidence from Indonesia

Rinawiyanti, Esti Dwi and Huang, Xueli and As-Saber, Sharif (2021) Adopting management control systems through CSR strategic integration and investigating its impact on company performance: evidence from Indonesia. Corporate Governance: The International Journal of Business in Society, 21 (3). pp. 463-478. ISSN 1472-0701

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Abstract

Purpose–This paper aims to investigate the extent to which the management control systems (MCS)adoption in corporate social responsibility (CSR) integration into business strategy has an impact oncompanies’ performance.Design/methodology/approach–Using a sample of 435 Indonesian manufacturing companies, partialleast squares structural equation modelling was used to investigate the impact of CSR strategicintegration on companies’ performance based on the contingency and stakeholder theories.Findings–The findings reveal CSR strategic integration has a positive and significant impact oncompanies’ performance, including employee, operating and financial performance and the company sizecan positively moderate the impact of this integration on both its operating and financial performance.Practical implications–The findings can encourage managers to adopt MCS by undertaking CSR atthe strategic level, resulting in superior performance, both socially and financially.Social implications–Employee performance and operating performance can significantly mediate theeffect of strategic integration on financial performance.Originality/value–The paper suggests that adopting MCS through CSR strategic integration couldimprove company performance socially and financially. This is the very first study on this issue from anIndonesian perspective

Item Type:	Article
Uncontrolled Keywords:	Manufacturing, Emerging countries, CSR integration, Strategic level
Subjects:	T Technology > T Technology (General)
Divisions:	Faculty of Engineering > Department of Industrial Engineering
Depositing User:	Ester Sri W. 196039
Date Deposited:	02 Feb 2021 07:06
Last Modified:	03 Apr 2023 08:29
URI:	http://repository.ubaya.ac.id/id/eprint/38832

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