IDEAS home Printed from https://ideas.repec.org/a/bas/econst/y2024i5p25-41.html
   My bibliography  Save this article

Deconstruction of Management Control Systems and the Role of Culture in Traditional Banking Institutions

Author

Listed:
  • Putu Yudha Asteria Putri
  • Iwan Triyuwono
  • Bambang Hariadi
  • Lilik Purwanti

Abstract

This study aims to know the existence of culture and its deconstruction in management control systems in traditional banking institutions. This research uses a mixed method with Explanatory Sequential Design by taking a traditional banking institutions in Indonesia and exploring it using interview and observation techniques at one of the traditional banking institutions to form a deconstruction of the new MCS concept. The results of this research reveal a significant influence between culture and MCS. Furthermore, a culture-based MCS deconstruction was discovered and formed, which found a kindness implemented in the Standard Operational Procedure, Assets implemented in the Work Plan, budgeting, and expenditure and a desire for its implementation through performance. Lastly is happiness, implemented in reporting and auditing.

Suggested Citation

  • Putu Yudha Asteria Putri & Iwan Triyuwono & Bambang Hariadi & Lilik Purwanti, 2024. "Deconstruction of Management Control Systems and the Role of Culture in Traditional Banking Institutions," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 25-41.
    • Handle: RePEc:bas:econst:y:2024:i:5:p:25-41
    as

    Download full text from publisher

    File URL: https://www.iki.bas.bg/Journals/EconomicStudies/2024/2024-5/02_Putu-Yudha-Asteria-Putri.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Enrico Bracci & Mouhcine Tallaki, 2021. "Resilience capacities and management control systems in public sector organisations," Journal of Accounting & Organizational Change, Emerald Group Publishing Limited, vol. 17(3), pages 332-351, February.
    2. Judd B. Kessler & Stephen Leider, 2016. "Procedural Fairness and the Cost of Control," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 32(4), pages 685-718.
    3. Martina Sageder & Birgit Feldbauer-Durstmüller, 2019. "Management control in multinational companies: a systematic literature review," Review of Managerial Science, Springer, vol. 13(5), pages 875-918, November.
    4. Euske, K. J. & Riccaboni, A., 1999. "Stability to profitability: managing interdependencies to meet a new environment," Accounting, Organizations and Society, Elsevier, vol. 24(5-6), pages 463-481, July.
    5. Sujoko Efferin & Christopher Christian Hutomo, 2021. "Spirituality, happiness and auditors' commitment: an interbeing perspective," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 34(4), pages 701-730, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gallus, Jana & Reiff, Joseph & Kamenica, Emir & Fiske, Alan Page, 2021. "Relational Incentives Theory," MPRA Paper 109898, University Library of Munich, Germany.
    2. Umesh Sharma & Stewart Lawrence, 2008. "Stability and Change at FPTL: An Institutional Perspective," Australian Accounting Review, CPA Australia, vol. 18(1), pages 25-34, March.
    3. Farah, Bassam & Chakravarty, Dwarka & Dau, Luis & Beamish, Paul W., 2022. "Multinational enterprise parent-subsidiary governance and survival," Journal of World Business, Elsevier, vol. 57(2).
    4. Bauweraerts, Jonathan & Arzubiaga, Unai & Diaz-Moriana, Vanessa, 2022. "Unveiling the global focus-performance relationship in family firms: The role of the board of directors," International Business Review, Elsevier, vol. 31(4).
    5. Judd B. Kessler & Katherine L. Milkman & C. Yiwei Zhang, 2019. "Getting the Rich and Powerful to Give," Management Science, INFORMS, vol. 65(9), pages 4049-4062, September.
    6. Jacobo Gomez-Conde & Ernesto Lopez-Valeiras & Fabricia Silva Rosa & Rogério João Lunkes, 2023. "The effect of management control systems in managing the unknown: Does the market appreciate the breadth of vision?," Review of Managerial Science, Springer, vol. 17(8), pages 2769-2795, November.
    7. Šilenskytė, Aušrinė & Kohtamäki, Marko & Dhanaraj, Charles, 2022. "Strategy implementation in the transnational MNC: A critical realist investigation of European and Indian unit collaboration," Journal of Business Research, Elsevier, vol. 152(C), pages 276-289.
    8. Hong, Jacky & Leung, Tiffany & Snell, Robin Stanley, 2024. "Transitioning from CSR to CSV in a foreign subsidiary in China through temporal decoupling," Journal of International Management, Elsevier, vol. 30(1).
    9. Kosfeld, Michael, 2019. "The Role of Leaders in Inducing and Maintaining Cooperation: The CC Strategy," IZA Discussion Papers 12540, Institute of Labor Economics (IZA).
    10. Katrin Schmelz & Anthony Ziegelmeyer, 2020. "Reactions to (the absence of) control and workplace arrangements: experimental evidence from the internet and the laboratory," Experimental Economics, Springer;Economic Science Association, vol. 23(4), pages 933-960, December.
    11. Chenhall, Robert H. & Euske, K.J., 2007. "The role of management control systems in planned organizational change: An analysis of two organizations," Accounting, Organizations and Society, Elsevier, vol. 32(7-8), pages 601-637.
    12. Kevin Baird & Sophia Su & Rahat Munir, 2023. "The mediating role of levers of controls on the association between sustainable leadership and organisational resilience," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 34(2), pages 167-200, June.
    13. Efferin, Sujoko & Hopper, Trevor, 2007. "Management control, culture and ethnicity in a Chinese Indonesian company," Accounting, Organizations and Society, Elsevier, vol. 32(3), pages 223-262, April.
    14. Holger Herz & Christian Zihlmann, 2024. "Adverse effects of control? Evidence from a field experiment," Experimental Economics, Springer;Economic Science Association, vol. 27(2), pages 469-488, April.
    15. Daniele Nosenzo & Erte Xiao & Nina Xue, 2024. "The motive matters: Experimental evidence on the expressive function of punishment," Monash Economics Working Papers 2024-09, Monash University, Department of Economics.
    16. Sunghoon Hong, 2022. "Tax treaties and foreign equity holding companies of multinational corporations," Review of Managerial Science, Springer, vol. 16(2), pages 483-520, February.
    17. Sven Modell, 2002. "Institutional perspectives on cost allocations: integration and extension," European Accounting Review, Taylor & Francis Journals, vol. 11(4), pages 653-679.
    18. Nerantzidis, Michail & Tampakoudis, Ioannis & She, Chaoyuan, 2024. "Social media in accounting research: A review and future research agenda," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 54(C).
    19. Holger Herz & Christian Zihlmann, 2021. "Adverse Effects of Contol: Evidence from a Field Experiment," CESifo Working Paper Series 8890, CESifo.
    20. Adjerhore Isaiah & Habsah Binti Muda, 2023. "Cross-Cultural Communication, Diversity Management and Competitive Advantage Among Multi-National Corporations: Evidence in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(7), pages 503-513, July.

    More about this item

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bas:econst:y:2024:i:5:p:25-41. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Diana Dimitrova (email available below). General contact details of provider: https://edirc.repec.org/data/ikbasbg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.