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Source: Journal Citation ReportsTM from ClarivateTM 2022

Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2022) 1.7
Journal Citation IndicatorTM (2022) 0.42
Received: 2018-10-14  |  Accepted: 2018-12-10  |  Published: 2019-03-30

Title

Management control system, corporate social responsibility, and firm performance


Abstract

The aim of this study is to examine, through corporate reputation and double-loop learning, how Management Control System (MCS) in the form of a diagnostic and interactive system positively and significantly affects corporate social responsibility (CSR) and the firm performance (FP). This study uses a sample of 163 respondents who are middle to top level managers of manufacturing companies in Banten Province. We test hypotheses by using structural equation modelling, especially SmartPLS. We find that the effect of MCS on CSR does not directly affect the corporate firm performance, and that reputation and Double-Loop Learning (DLL) do mediate better firm performance. The study implies that MCS can help the company to support the process of CSR application more effectively when it matches performance to the expectation of stakeholders. In addition, manufacturers must maintain their reputation and increase their double-loop learning to seize opportunities as a result of their socially responsible activity, and to achieve optimal corporate firm performance.


Keywords

Management control system (MCS), Corporate Social Responsibility (CSR), reputation (Rep), Double-Loop Learning (DLL), Firm Performance (FP)


JEL classifications

M10


URI

http://jssidoi.org/jesi/article/290


DOI


Pages

1354-1368


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Hasanudin, Agus Ismaya
Sultan Ageng Tirtayasa University, Banten, Indonesia http://untirta.ac.id
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Yuliansyah, Yuliansyah
Lampung University, Bandar Lampung, Indonesia https://www.unila.ac.id
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Said, Jamaliah
Universiti Teknologi MARA, Shah Alam, Malaysia https://www.uitm.edu.my
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Susilowati, Christin
University of Brawijaya, Malang, Indonesia https://ub.ac.id
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, Muafi
Islamic University of Indonesia, Yogyakarta, Indonesia https://www.uii.ac.id
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Journal title

Entrepreneurship and Sustainability Issues

Volume

6


Number

3


Issue date

March 2019


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 5412  |  PDF downloads: 1831

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