The Effect of Levers of Control System on Sustainability Performance: Evidence from Indonesian Batik Industry

Budiwati, Christiyaningsih
Mustopha, Mazlina
Tse San, Ong
Mohd Said, Ridzwana

Indonesian Journal of Applied Accounting and Finance
Vol. 4 No. 1 (2025): June

Small and Medium Enterprises (SMEs) are significant contributors to the world’s economy, particularly in times of crisis. SMEs also constitute an integral part of Indonesia's self-sustaining economic system and hold considerable promise for enhancing societal well-being. One of the SMEs that plays a big role in the Indonesian economy is the batik industry. However, with the development of fashion and modernization, batik clothing faces challenges to survive. The purpose of this study is to examine the effect of four levers of management control systems on sustainability performance. The Indonesian batik industry was chosen as the object of this study. Information was collected through a survey of batik makers throughout Indonesia. The result from the survey shows that four levers of the management control system positively affect sustainability performance.