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All Journal Gadjah Mada International Journal of Business Economics and Finance in Indonesia
Nia Pramita Sari
Universitas Indonesia
Economics, Econometrics & Finance

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Levers of Control and Managerial Performance: The Importance of Belief Systems Ancella Anitawati Hermawan; Emil Bachtiar; Panggah Tri Wicaksono; Nia Pramita Sari
Gadjah Mada International Journal of Business Vol 23, No 3 (2021): September-December
Publisher : Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.22146/gamaijb.62612

Abstract

Belief systems, which are one of the four levers of control, play a vital role in an organization. This study is primarily aimed at examining the effects of belief systems on managerial performance. Since the four levers of control jointly function in management control systems, we extend our study by investigating whether the contingent-fit between strategic risk, strategic uncertainty, and the other three levers of control (i.e., boundary systems, diagnostic control, and interactive control) strengthens the association between belief systems and managerial performance. A survey questionnaire was distributed to the upper-level management of various companies or strategic business units in Indonesia during the fourth quarter of 2017, resulting in 81 respondents. Hypotheses testing were conducted using the OLS regression model. This research found that belief systems are positively associated with managerial performance, indicating that the implementation of effective belief systems leads to higher managerial performance. This study also found that the contingent-fit between strategic risk, strategic uncertainty, and the other three levers of control does not have any effect on how belief systems are positively associated with managerial performance. This finding indicates that although management does not adopt a fit combination between its level of strategic risk and strategic uncertainty and the boundary systems, diagnostic control, and interactive control, it can still achieve good performance as long as strong belief systems are implemented. These findings confirm the critical role of belief systems in the levers of control. Thus, management needs to ensure the establishment of more effective belief systems if the company or business unit wants to produce optimal performance.
The Effect of School Operational Assistance Program on Investment in Education by Households: Evidence from Indonesia Nia Pramita Sari; Ryuichi Tanaka
Economics and Finance in Indonesia Volume 65, Number 2, December 2019
Publisher : Institute for Economic and Social Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (213.453 KB) | DOI: 10.47291/efi.v65i2.637

Abstract

The School Operational Assistance Program, referred to as BOS, is a demand intervention program indirectly provided by the government of Indonesia to students through schools, started in July 2005. This paper examines the impact of BOS on educational investment by households and other expenditure such as food and non-food consumption. Using the observations of 1,161 households with at least one member studying in public school from the fourth wave of the Indonesian Family Life Survey (IFLS 4), we discover that BOS is effective in relaxing household’s budget constraint, thus increasing educational investment by households. We also discover that households with low income benefit significantly from BOS relative to those with high income. Additionally, we discover that BOS assists households, regardless of their income level, in increasing their spending on food and non-food items. 
Co-Authors Ancella Anitawati Hermawan, Ancella Anitawati Bachtiar, Emil Panggah Tri Wicaksono Ryuichi Tanaka