Village Credit Performance and Its Relationship with Management Control System Misfit

Abstract

A management control system supports LPD management through the levers of control concept mechanism, namely belief, boundary, diagnostic and interactive control system. It must be following the organizational culture that is built and occurs in each LPD to strengthen LPD operations so that it is expected to be able to improve LPD performance. This study aims to provide empirical evidence about the influence of a misfit management control system (levers of control) with an organizational culture that will have a negative effect on LPD financial and non-financial performance. Collecting data through a survey (filling out a questionnaire) from 12 participating LPDs gave responses via the google form link, and manual filling of 35 people consisting of pemucuk, penyarik, petengen and the misfit residual regression analysis provides empirical evidence. The result shows that only hierarchical organizational culture with MSS (levers of control) which has a significant (negative) effect on the LPD's financial and non-financial performance.