Management control system configuration, business process and company performance: Empirical evidence from the indonesian startup companies

Resumen

The management control system (MCS) is an integrated framework for controlling complex organizational processes, forming distinct control configurations. MCS configuration plays a crucial role in supporting business processes and improving company performance. However, studies on this subject remain limited. This research aims to examine the impact of different MCS configurations on the business processes and performance of startups in Indonesia. Using Partial Least Squares (PLS) analysis and a sample of 209 startup companies across 16 regions in Indonesia, we find that MCS configuration has a positive influence on both business processes and company performance. Based on cluster analysis, we identify several optimal control configurations that support high organizational performance, highlighting the relationship between MCS configuration and company performance through business processes.