Purpose
The purpose of this study is to investigate the relationship between culture control, capability and creative industries’ performance. Capability which is used in this study is organizational creativity and innovation.
Design/methodology/approach
This study uses the owner and the manager of creative industries as samples. Total amount of the questionnaires which are used in this data are 270. Data for this study is primary data in respondents’ perceptions which are collected via mail to all respondents . AMOS 16 program used as an aid tool to solve any problems that may emerge in structural equation modeling (SEM).
Findings
The result from hypotheses testing showed that cultural control positively influenced the capabilities of an organization, creativity facilitated the innovation formation. Finally organizational creativity and innovation influenced the SME’s performance.
Research limitations/implications
This study has a drawback that inherently attached with the chosen method. This study tests the relationship among variables that have a large amount of samples at a given point of time
Practical implications
The result from this study is expected to be a reference in management in using its control that will influence the firm’s capability and furthermore it will influence the SME’s performance to maintain its competitive advantage.
Originality/value
How MCS influence the creativity is still limited. This study investigated innovation not only as an outcome variable, but also as part of consequences of organizational creativity.
This study aimed to investigate the effect of management control system enabling with capabilities that can improve the performance of SMEs. This study was conducted among the managers of SMEs of local food products in Banten Province, Indonesia. The number of respondents in this study was 85 SME managers. This study used structural equation modeling as an analytical tool and PLS Smart software to process the data. The findings of this study show that there was a positive effect of the use of enabling management control system (MCS) on creativity; there was a positive and significant effect of the use of Enabling MCS on cost efficiency; there was a positive and significant effect of the use of Enabling MCS on performance; there was a positive and significant effect of creativity on innovation; there was a positive and significant effect of cost efficiency on performance; and finally there was a positive and significant effect of innovation on performance. The implication of this study is that it can provide a choice of control system for SME management, which up to now still uses conventional control system. The use of Enabling MCS can create a capability for the managers of SMEs of local food products to win the competition. This is due to the uniqueness of Enabling MCS that can increase creativity and also cost efficiency.
This study seeks to supply empirical evidence for how board characteristics influence corporate governance compliance in the Indonesian banking industry. Corporate governance compliance level represents a company’s actions to fulfill regulatory obligations that aim to protect the public from potential investment losses in the banking industry. This research was conducted by analyzing the influence of board characteristics, specifically how a board of commissioners’ institutions and their instruments affect corporate governance compliance. The entire banking industry, which was listed on the Indonesia Stock Exchange from 2010 to 2015, was employed as the population for this research. Purposive sampling was used as the sampling technique, resulting in 195 observations. To test this study’s hypotheses, multiple regression was applied as the data analysis method. The results revealed that the size of the board of commissioners, the proportion of independent commissioners, the experience of commissioners, and the size of the audit committee were factors that encouraged management in the banking industry to improve their firms’ corporate governance compliance. This indicates that monitoring from the board acts as an effective mechanism for reducing information asymmetry. This research also proves that open innovation following regulations can increase compliance with laws.
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