IDEAS home Printed from https://ideas.repec.org/a/bjz/ajisjr/1818.html
   My bibliography  Save this article

Lean Management, Competitive Advantage, and Firm Performance: The Role of Management Control Systems (Evidence from Indonesia Manufacturing Firms)

Author

Listed:
  • Kevin Hermanto Tupamahu
  • Imam Ghozali
  • P.T. Basuki

Abstract

The purpose of this paper is to examine the role of management control systems (MCS) to support the implementation of lean management strategy to achieve competitive advantage and improve firm performance. Data collected using a questionnaire survey. A total of 123 managers in manufacturing firms participated in this study. Data were analyzed using structural equation models. The results show that a lean management strategy is positively and significantly related to MCS and competitive advantage; MCS has a positive and significant effect on competitive advantage and firm performance. Furthermore, these results show that MCS serves as a mediating variable to the relationship between lean management and competitive advantage, and firm performance. The results of the study show the role of lean MCS as an integral part of lean management to achieve competitive advantage and improve firm performance. This result is the initial evidence of how MCS mediates the relationship between lean management strategy, competitive advantage, and firm performance.

Suggested Citation

  • Kevin Hermanto Tupamahu & Imam Ghozali & P.T. Basuki, 2019. "Lean Management, Competitive Advantage, and Firm Performance: The Role of Management Control Systems (Evidence from Indonesia Manufacturing Firms)," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 8, November.
    • Handle: RePEc:bjz:ajisjr:1818
    as

    Download full text from publisher

    File URL: https://www.richtmann.org/journal/index.php/ajis/article/view/10577
    Download Restriction: no
    File URL: https://www.richtmann.org/journal/index.php/ajis/article/view/10577/10202
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Raphael Amit & Paul J. H. Schoemaker, 1993. "Abstract," Strategic Management Journal, Wiley Blackwell, vol. 14(1), pages 33-46, January.
    2. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, vol. 32(10), pages 1231-1241, October.
    3. Widener, Sally K., 2007. "An empirical analysis of the levers of control framework," Accounting, Organizations and Society, Elsevier, vol. 32(7-8), pages 757-788.
    4. Henri, Jean-Francois, 2006. "Management control systems and strategy: A resource-based perspective," Accounting, Organizations and Society, Elsevier, vol. 31(6), pages 529-558, August.
    5. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    6. Fullerton, Rosemary R. & Kennedy, Frances A. & Widener, Sally K., 2013. "Management accounting and control practices in a lean manufacturing environment," Accounting, Organizations and Society, Elsevier, vol. 38(1), pages 50-71.
    7. Amoako-Gyampah, Kwasi & Acquaah, Moses, 2008. "Manufacturing strategy, competitive strategy and firm performance: An empirical study in a developing economy environment," International Journal of Production Economics, Elsevier, vol. 111(2), pages 575-592, February.
    8. Chenhall, Robert H., 2005. "Integrative strategic performance measurement systems, strategic alignment of manufacturing, learning and strategic outcomes: an exploratory study," Accounting, Organizations and Society, Elsevier, vol. 30(5), pages 395-422, July.
    9. Yang, Ma Ga (Mark) & Hong, Paul & Modi, Sachin B., 2011. "Impact of lean manufacturing and environmental management on business performance: An empirical study of manufacturing firms," International Journal of Production Economics, Elsevier, vol. 129(2), pages 251-261, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adebiyi, Sulaimon Olanrewaju & Bassey, Queen E. & Amole, Bilqis B., 2022. "Lean Management Models Application And Safety Management Of Logistics Firm In Nigeria," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 16(2), December.

    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. Binh Bui & Muhammad Nurul Houqe & Muhammad Kaleem Zahir-ul-Hassan, 2022. "Moderating effect of carbon accounting systems on strategy and carbon performance: a CDP analysis," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 33(4), pages 483-524, December.
    2. Hofmann, Thorsten, 2011. "Balanced Scorecard: Theoretische Konzeption und Anwendung in der Praxis," Research Papers on Marketing Strategy 4/2011, Julius-Maximilians-Universität Würzburg, Lehrstuhl für BWL und Marketing.
    3. Grafton, Jennifer & Lillis, Anne M. & Widener, Sally K., 2010. "The role of performance measurement and evaluation in building organizational capabilities and performance," Accounting, Organizations and Society, Elsevier, vol. 35(7), pages 689-706, October.
    4. Joanne Lye & Zahirul Hoque & Lee Parker, 2021. "How do employees learn from performance measures? Evidence from a local government entity," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(2), pages 3443-3480, June.
    5. Ewelina Zarzycka & Justyna Dobroszek & Lauri Lepistö & Sinikka Moilanen, 2019. "Coexistence of innovation and standardization: evidence from the lean environment of business process outsourcing," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(3), pages 251-286, October.
    6. Bedford, David S. & Malmi, Teemu & Sandelin, Mikko, 2016. "Management control effectiveness and strategy: An empirical analysis of packages and systems," Accounting, Organizations and Society, Elsevier, vol. 51(C), pages 12-28.
    7. Chenhall, Robert H. & Moers, Frank, 2015. "The role of innovation in the evolution of management accounting and its integration into management control," Accounting, Organizations and Society, Elsevier, vol. 47(C), pages 1-13.
    8. Bedford, David S. & Bisbe, Josep & Sweeney, Breda, 2019. "Performance measurement systems as generators of cognitive conflict in ambidextrous firms," Accounting, Organizations and Society, Elsevier, vol. 72(C), pages 21-37.
    9. Bellora-Bienengräber, Lucia & Radtke, Robin R. & Widener, Sally K., 2022. "Counterproductive work behaviors and work climate: The role of an ethically focused management control system and peers’ self-focused behavior," Accounting, Organizations and Society, Elsevier, vol. 96(C).
    10. Hall, Matthew, 2011. "Do comprehensive performance measurement systems help or hinder managers' mental model development?," LSE Research Online Documents on Economics 36703, London School of Economics and Political Science, LSE Library.
    11. Alp Eren Yurtseven & Mehmet Teoman Pamukçu, 2022. "Innovation patterns in firms and intra-industry heterogeneity empirical evidence from Turkey," Evolutionary and Institutional Economics Review, Springer, vol. 19(2), pages 645-679, September.
    12. Fasshauer, Ingrid, 2012. "Les interactions entre contrôle et stratégie : redéfinition du rôle des cadres intermédiaires et du levier interactif de contrôle," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/11150 edited by Berland, Nicolas.
    13. Franco Visani, 2017. "Applying business analytics for performance measurement and management. The case study of a software company," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2017(2), pages 89-123.
    14. W. David Allen & Donald J. Schepker & Clint Chadwick, 2022. "Firms' responses to changes in frictions in related human capital factor markets," Strategic Management Journal, Wiley Blackwell, vol. 43(7), pages 1347-1373, July.
    15. Jürgen Harrer & Andreas Wald, 2016. "Levers of enterprise security control: a study on the use, measurement and value contribution," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(1), pages 7-32, February.
    16. Ulf Diefenbach & Andreas Wald & Ronald Gleich, 2018. "Between cost and benefit: investigating effects of cost management control systems on cost efficiency and organisational performance," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 29(1), pages 63-89, March.
    17. Margaret A. Abernethy & Henri C. Dekker & Jennifer Grafton, 2021. "The Influence of Performance Measurement on the Processual Dynamics of Strategic Change," Management Science, INFORMS, vol. 67(1), pages 640-659, January.
    18. Acquaah, Moses, 2013. "Management control systems, business strategy and performance: A comparative analysis of family and non-family businesses in a transition economy in sub-Saharan Africa," Journal of Family Business Strategy, Elsevier, vol. 4(2), pages 131-146.
    19. Peters, Matt D. & Wieder, Bernhard & Sutton, Steve G., 2018. "Organizational improvisation and the reduced usefulness of performance measurement BI functionalities," International Journal of Accounting Information Systems, Elsevier, vol. 29(C), pages 1-15.
    20. Pantea Foroudi, 2023. "Conceptualizing, Measuring, and Managing Marketing Assets: Developing the Marketing Assets, Communication Focus, and Capability Nexus," Corporate Reputation Review, Palgrave Macmillan, vol. 26(3), pages 203-222, August.

    More about this item

    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:bjz:ajisjr:1818. 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: Richtmann Publishing Ltd (email available below). General contact details of provider: https://www.richtmann.org/journal/index.php/ajis .

    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.