Does Management Control System affect MSME Performance? The Role of Business Strategy and Accounting Information System Sri Mulyani (a*), Doddy Setiawan (b)
a) Faculty of Economics and Business, Sebelas Maret University, Surakarta - Muria Kudus University Indonesia, Indonesia
*s.mulyani[at]umk.ac.id
b) Faculty of Economics and Business, Sebelas Maret University, Surakarta, Indonesia
Abstract
Micro Small and Medium Enterprises (MSMEs) are the backbones of the nation^s economy, so it needs to get attention so that their business performance increases. This research explores management control systems, MSME performance, business strategies, and accounting information systems. This research method uses a survey with a sample of 173 respondents of Indonesian Central Java MSMEs. They are members of the International Council for Small Business (ICSB) with MSEM (Moderated Structural Equation Model) analysis of the LISLER (Linear Structural Relationship) program. The results showed that the management control system had a significant positive effect on the performance of MSMEs. Furthermore, accounting information systems strengthen the influence between management control systems and MSME performance. At the same time, the business strategy weakens the impact between the management control system and the performance of MSMEs. This research contribution provides input to policymakers to introduce the importance of management control systems for MSMEs.
Keywords: Management Control System- MSME Performance- Business Strategy- Accounting Information System
