Page 96 - SUSTAINABILITY ISSUES & COVID-19

11 Improving Sustainability Performance

Based on Management Control System

and Capabilities Perspective

Lin Rosini, Dani Rahman Hakim

EXTENDED ABSTRACT

PURPOSE

This study aims to analyze the degree of performance of the company’s sustainability based on the condition of the
management control system and its capabilities. Management control systems are measured by the dimensions of
interactive and diagnostic control, while capabilities with the dimensions of innovation and market orientation.

STUDY DESIGN/METHODOLOGY/APPROACH

The final sample in this study was 60 managers from manufacturing sector companies listed on the Indonesia
stock exchange. Data collection using a questionnaire which was further analyzed by structural equation modeling
methods through Smart PLS

FINDINGS

The results showed that interactive control, diagnostic control, and innovation proved to affect sustainability
performance. Although partially influenced by interactive and diagnostic control, market orientation has not
been proven to affect sustainability performance. Innovation has a mediating role for the indirect effect between
interactive controls on sustainability performance.

ORIGINALITY/VALUE

The novelty in this study is the inclusion of the dimensions of innovation and market orientation as mediating
variables.

Keywords
Capability, Management Control System, Sustainability Performance.

JEL Classification
Find the JEL classification on https://www.aeaweb.org/econlit/jelCodes.php?view=jel

International Conference on Sustainability 95
(5 Sustainability Practitioner Conference)
Th