Open AccessOrganizational control and performance: An empirical study of financial institutions
Author(s) -
Lilis Sulistyani,
Imam Ghozali,
Jaka Isgiyarta
Publication year - 2017
Publication title -
corporate ownership and control
Language(s) - English
Resource type - Journals
eISSN - 1810-0368
pISSN - 1727-9232
DOI - 10.22495/cocv14i3art6
Subject(s) - organizational performance , structural equation modeling , control (management) , organizational behavior and human resources , association (psychology) , knowledge management , organizational learning , organizational studies , business , management control system , organizational commitment , organizational effectiveness , computer science , psychology , social psychology , artificial intelligence , machine learning , psychotherapist
The aim of this research was to examine the effect of diagnostic control system and interactive control system on organizational performance with organizational capability as intervening variable. Resource-based view theory was used for underlying the association between the variables. The respondents were 84 Financial Institutions in Indonesia. The data were analyzed using Structural Equation Model with Warp PLS 3.0. The results show that the diagnostic control system has positive significant effect on organizational capability but no significant effect on organizational performance. Interactive control system is proven to have positive significant effect on organizational capability and organizational performance. Organizational capability is proven not to mediate the association between diagnostic control system and organizational performance, but it mediates partially the association between interactive control system and organizational performance partially.