MANAGEMENT CONTROL IN MAKING INNOVATION: A STUDY OF PROCESS AND IMPACT IN NTREPRENEURIAL ORGANIZATION

Wirawan E. D. Radianto




Abstract


Several researches show that management control is a tool for strategy formulating and at the same time for its implementation. Innovation is a strategy for organization. Therefore management control is a tool to make innovation. The purpose of this research was presenting how management control played an important role in the innovation process. Qualitative approach was used with a single case study in the Accounting Department of an Entrepreneurial University. Several methods were used to collect data such as interview, observation, and documentation. The result showed that the combination of management control was able to make innovation. Several issues emerged such as organization context, organization purpose, behavior, and other aspects regarding the implementation of management control mechanisms. This research also examined the process of innovation, and innovation impact on students and lecturers


Keywords


Entrepreneurship, innovation, management control, university

References


AlTarawneh, H. A. & Mubaslat, M. M. (2011). Design and use of management and control system in the Jordanian University. International Journal of Accounting and Finance Reporting, 1(1), 242–254.

Anthony, S.D. (2012). The little black book of innovation. Harvard Business Review Press.

Anthony, R. N. & Govindarajan, V. (2007). Management control system. Twelve Edition. New York: McGrawHill.

Arnaut, D. (2010). Toward an entrepreneurial university. International Journal of EuroMediterranean Studies, 3(1), 135–152.

Belkaoui, A. R. (2003). Intellectual capital and firm performance of US multinational firms: A study of the resourcebased and stakeholder views. Journal of Intellectual Capital, 4(2), 215–226.

Bobe, B. J. & Taylor, D. W. (2010). Use of management control systems in university faculties: Evidence of diagnostic versus interactive approaches by the upper echelons. A paper presented in The Sixth Asia Pacific Interdisciplinary Research in Accounting Conference, July, 2010, Sydney.

Bruining, H., Bonnet, M., & Wright, M. (2004). Management control systems and strategy change in buyouts. Management Accounting Research, 15, 155–177.

Cahyono, D., Lestari, E., & Yusuf, S. (2007). Pengaruh moderasi sistem pengendalian manajemen dan inovasi terhadap kinerja. A paper presented in Simposium Nasional Akuntansi X Universitas Hassanudin Makasar, 2628 Juli 2007.

Davila, A., Foster, G. & Li, M. (2009). Reasons for management control systems adoption: Insights from product development systems choice by earlystage entrepreneurial companies. Accounting. Organizations and Society, 34(3–4), 322–347.

Davila, T. (2000). An empirical study on the drivers of management control systems' design in new product development. Accounting, Organizations and Society, 25, 383–409.

Eshraqi. S. (2012). Innovation and using management control system. International Proceedings of Economics Development & Research, 52(1).

Fizriyani, W. (2016). Ribuan perguruan tinggi di Indonesia belum terakreditasi. Retrieved April 25, 2016, from m.republika.co.id/berita/ nasional/umum/15/12/31/o083mg359ribuanperguruantinggimasihbelumterakreditasi.

Gibb, A. (2005). Towards the entrepreneurial university: Entrepreneurship education as a lever of change. A paper presented in Policy Paper #003 National Council for Graduate Entrepreneurship, Birmingham.

Herbert, I. (2009). Business transformation through empowerment and the implications for management control systems. Journal of Human Resource Costing & Accounting, 13(3), 221–244.

Hoecht, A. (2006). Quality Assurance in UK higher education: Issues of trust, control, professional autonomy and accountability. Higher Education, 51, 541–563.

Ismail, T. (2013). Formatting strategy and management control system: Evidence from Indonesia. International Journal of Business and Social Science, 4(1), 196–205.

JPNN. (2016). Astaga pemerintah tutup 103 kampus swasta. Retrieved April 25, 2016, from www.jppn.com/news.php?id =358849.

Kaplan & Norton. (2001). The strategyfocused organization. Boston: Harvard Business School Press.

Kimura & Mourdoukourtas, (2000). Effective integration of management control systems for competing in global industries. European Business Review, 12(1), 41–45.

Marques, M. C. C. (2009). Key performance indicators in Portuguese public university. Research in Higher Education Journal. 5, 1–15.

Merchant & Stede. 2007. Management control systems: Performance measurement, evaluation, and incentives. Second Edition. Prentice Hall.

Montgomery, C. & Collins, D. (2005). Corporate strategy: A resource based approach. Second Edition. Boston: McGrawHill/Irwin.

Oebaidillah, S. (2016). PTS harus mampu berinovasi. Retrieved April 25, 2016, from www.befa. Mediaindonesia.com/news/read/37408/ptsharus mampuberinovasi/ 20160331.

Radianto, W. E. D. (2013). Using project based learning (PBL) in management accounting course: Lesson and reflection from entrepreneurship education. Journal of Modern Accounting and Auditing, 9(9), 1186–1193.

Radianto, W. E. D. (2015). Mengungkap sistem pengendalian belief system pada universitas yang berbasis entrepreneurship: Sebuah studi fenomenologi. Jurnal Manajemen dan Kewirausahaan, 17(1), 55–64.

Ropke, J. (2000). The entrepreneurial university: Innovation, academin knowledge creation and regional development in globalized economy. Retrieved February 15, 2014, from etc.online. unimarburg.de.

Simons, R. (1990). The role of management control systems in creating competitive advantage: New perspectives. Accounting, organizations and society, 15(1–2), 127–143

Simons, R. (1994). How new top manager use control systems as levers of strategic renewal. Strategic Management Journal, 15(3), 169–189.

Simons, R. (1995). Levers of control. Boston: Harvard Business School Press.

Wawasan. (2014, August 12). Perguruan tinggi harus terus berinovasi.

Widianto, E. (2015). Pemerintah tutup 10 perguruan tinggi swasta di Jawa Timur. Retrieved April 25, 2016, from http://m.tempo.co/read/news/2015/ 12/23/079730266/pemerintahtutup10perguruantinggiswastadijawatimur.

Wongkaew, W. (2013). Management accounting and control systemsunnecessary evils to innovation? Chulalongkorn Business Review, 34(3), 1–21.

Yin, K. R. (2003). Case study research design and methods. London: Sage Publication.

Zheng, T. (2012). Balancing the tensions between the control and innovative roles of management control systems: A case study of Chinese organization. Dissertation, University of Northumbria at Newcastle.


Full Text: PDF

The Journal is published by Faculty of Economics, Department of Management - Petra Christian University. It available online supported by Directorate General of Higher Education - Ministry of National Education - Republic of Indonesia.

©All right reserved 2016.Jurnal Manajemen dan Kewirausahaan, ISSN: 1411-1438, e-ISSN: 2338-8234

web stats
View My Stats




Copyright © Research Center Web-Dev Team