Meta Analysis: Management Control System, Strategy, Company Performance

This study aims to determine and analyze the influence of management control systems on the strategy and its impact on business unit performance. Management control system uses lever's control approach consisting of belief system, boundary system, diagnostic control system and interactive control system. The influence and impact of the management control system resulted from previous research studies. This research used meta-analysis method. Meta-analysis is the study of a number of research results in similar problems. The unit of analysis in the study are written documents about the research of management control system in the form of journal articles and research reports taken purposively based on their compatibility with the research theme. Data analysis used is quantitative data analysis with percentage and qualitative data analysis for descriptive analysis result data on 25 research related to management control system. Findings of meta-analysis results based on research objectives, research variables used, population / sample of research, data collection techniques and analysis tools show that management control system lever's of control approach can contribute to the achievement of strategy and impact on business unit performance improvement.

Effect of Use of Management Accounting Systems on Competitive Advantages: Business Unit Performance as a Mediator (Study of MSMEs in Palembang City)

Micro, Small, and Medium Enterprises (MSMEs) are business units managed by community groups and families. SMEs has a strategic role in Indonesia economic development because in addition to contributing to national economic growth it can also absorb large numbers of workers. However, micro, small and medium businesses have a low competitive advantage in the current era of globalization and technology. For this reason, MSMEs need resources that can be managed to win the business competition in Indonesia. One of the most important resources managed in winning the business competition is information resources. This study aims to prove the influence of the use of management accounting systems on competitive advantage, with business performance as a mediator. The data of this study were collected through a survey by distributing questionnaires. The sample in this study was MSMEs scale company in the city of Palembang using the purposive sampling method. Data analysis technique uses path analysis test. Based on data and research results it can be concluded that Business Unit Performance mediates the relationship between Management Accounting Systems and Competitive Advantages. Keywords: Management Accounting System, Competitive Advantage, and Business Unit Performance

Sources of Business Unit Performance Heterogeneity in India: The Influence of Ownership

Executive Summary This article examines the differential impact of ownership on the relative importance of corporate headquarters, industry, and business units on the performance of business units of firms in India. Different sets of owners have diverse objectives due to which there are variations in strategic choices resulting in the variance in performance of firms. This article first examines the extent to which variance in business unit performance can be attributed to ownership. It subsequently evaluates the relative importance of industry, corporate headquarters, and business units in explaining business unit performance variance of domestic firms and MNEs. The analysis for this article is based on a unique hand-collated database that contains details of the business units of domestic firms and MNEs operating in India. These details include business unit performance as well as the industry affiliation of the business unit. The article leverages multilevel analysis to understand the relative importance of the various effects. This analysis helps to know the magnitude of the various effects as well as their statistical significance. The results indicate that ownership is a significant institutional variable that explains business unit performance. An examination of the magnitudes of the effects also suggest that business unit effects and corporate effects are more important than industry effects in explaining business unit performance of firms operating in India. The magnitude of the business unit effects is greater than the corporate effects in the case of domestic firms. In the case of the MNE affiliates, although the magnitude of the corporate effects are greater than the business unit effects, this difference is not statistically significant. Overall, these results reinforce other empirical results that establish the importance of firm resources and capabilities in influencing firm performance as compared to the industry structure. These results are significant because in the Indian context, although studies have so far evaluated firm performance, they have not disaggregated the business unit and corporate headquarters effects. This article aligns the study of performance variance of Indian firms with those conducted across the globe and helps to compare how the relative importance of various effects vary. It makes an important contribution by including ownership in the study of business unit performance variance of Indian firms.