EMPIRICAL EVIDENCE OF MANAGEMENT CONTROL SYSTEM IN THE EMERGING MARKET

How to cite this paper: Farida, I., Aryani, Y. A., & Setiawan, D. (2022). Empirical evidence of management control system in the emerging market. Corporate & Business This study reviews and evaluate the development of management control system (MCS) research, specifically in Indonesia. A control system is one of the most critical things for organizations to achieve their goals & Moers, 2013). A management accounting system is part of the organizational control system, which is important in providing information to assist managers in controlling their activities and reducing environmental uncertainty to achieve organizational goals. We conducted a mapping of research on MCSs published in various journals indexed by Sinta 2 in Indonesia. This study reveals that the direction of MCS research during 2000–2022 in Indonesia predominantly focused on organizational performance, business unit performance, management accounting practices, and quality of government financial reports. It is expected that future studies explore these areas more, and expand to other aspects such as conducting cross-country studies on MCS to get international insight into how MCSs work in micro, small and medium enterprises (MSMEs) is another interesting area.


INTRODUCTION
The development of technology that is happening now seems so fast (Khan et al., 2021). The existence of this technological development has resulted in an increasingly competitive business climate (Wynn & Olayinka, 2021). The business competition climate is changing from technology competition to information competition (Faisal & Prabowo, 2000; Makalew, Jan, & Karuntu, 2019). It is not surprising that this information competition has become an essential thing (Faisal & Prabowo, 2000), because, with the information generated, it can affect the company's overall activities in the future (Widyarti, Wahyudi, & Hersugondo, 2021). Therefore, accurate, relevant, and timely information is very important for decision-making (Dilla, Janvrin, Perkins, & Raschke, 2019; Miller, 1987).
In Indonesia, business growth in big cities is getting better and better and growing from time to time (Suci, 2017). This requires business organizations to improve the quality of their operational, production, and control systems (Febriana,  An organizational manager also needs to ensure that resources are bought and used effectively and efficiently in achieving organizational goals (Astini, 2018;Kafetzopoulos, Psomas, & Gotzamani, 2015). Theoretically, this is known as the science of the management control system (MCS) ( Siminică, Crăciun, & Dinu, 2015). Companies are required to realize their long-term strategies. These long-term strategies are translated into a series of company activities, so that performance measurement from a financial perspective is no longer adequate, so a comprehensive tool is needed that can measure performance from various perspectives (Adiputra et al., 2020;Ciptani, 2000; Wu, Do, Nguyen, Anridho, & Vu, 2020). Measurement of company performance, which is too emphasized from a financial point of view, often omitted another point of view that is, of course, no less important. For example, in measuring customer satisfaction and the adaptation process to a change, in performance measurement, a balance is needed between financial performance measurement and non-financial performance measurement (Ciptani, 2000;Rampling, Eddie, & Mir, 2011;Widener, 2006). This balance between financial and non-financial performance measurements helps companies to know and evaluate their overall performance (Grafton, Lillis, & Widener, 2010; Shen, Ma, Wang, Pan, & Meng, 2019).
The control system is one of the most important things for organizations to achieve success by achieving organizational goals (Grabner & Moers, 2013). Management accounting system planning is part of the organizational control system, one of which is to provide important information to assist managers in controlling their activities and reducing environmental uncertainty to achieve organizational goals (Sukirman & Sari, 2012; SeTin & Augustine, 2020). The products produced by the management accounting system are management accounting information, such as information about costs (Adler, 2011;Elhossade, Zoubi, & Zagoub, 2022;King & Clarkson, 2015). Traditionally, management accounting information is dominated by financial information, but in its development, it also provides non-financial information (SeTin & Augustine, 2020). This management accounting system is defined as the characteristics or attributes of information comprising broad scope, aggregate, timeliness, and integration (Chenhall & Smith, 2011).
If there is no control within the organization, then each will work for their own interests and ignore the interests of the company (Eveline, 2017;Zulkarnain, 2013). With the control, each action will be evaluated. Is it in a line with the results of the action and the action plan? (Martini, Sari, & Wardhani, 2015). If there is a deviation, it is necessary to find the cause as a corrective action (Adiputra et al., 2020). Control cannot be implemented on the results of the action because it has already occurred. What needs to be controlled is the planning and implementation of ongoing activities. For this reason, fast and precise information is needed so that any action that shows symptoms of going out of control can be detected immediately (Adiputra et al., 2020;Febriana et al., 2017).
Not only used to achieve goals (Astini, 2018;Kafetzopoulos et al., 2015), MCSs are also used to improve organizational performance for the better (Elhossade et al., 2022;Ulrich & Güler, 2021). The performance of this organization can be measured financially or non-financially (Ulrich & Güler, 2021). Non-financial performance can be measured from the point of view of employees and customers (Duh, Xiao, & Chow, 2008) because the employee-oriented measurement is important (Schäffer et al., 2015). The recording of company activities as management accounting information is the basis for management in carrying out the planning, coordination, and evaluation process (García Osma, Gomez-Conde, & Lopez-Valeiras, 2022). Managers have guidelines for determining future policies based on management accounting information (Otley, 1980). Using this management accounting information assesses the performance of a company and the level of achievement it achieves each period (SeTin & Augustine, 2020).
In a company, an MCS is very necessary because it plays a major role in the company's development (Farida, Sunandar, & Aryanto, 2019;Farida & Rozini, 2016). If there is no management control in a company, then the company will automatically be very vulnerable to setbacks (Aryani, 2009). If the control system in a company is very good, then the company will be very developed (Ratnaningrum, Latifah, Suyanto, Aryani, & Setiawan 2018). Of course, every company has its own standards for management control. The better the control system, the better the company's performance (Adler, 2011;Aryani, 2009 Syaifudin, Ritchi, & Avianti, 2020), but in Indonesia, no one has done it yet, so that these documented findings can provide knowledge and a brief review of the direction of the development of management accounting (MCS) during the years 2000-2022. This study conducted a mapping of research journals on MCSs from various publishers indexed by Sinta 2 in Indonesia. The Sinta Index (Science and Technology Index) is an online scientific portal managed by the Ministry of Education and Culture, Research and Technology, providing a list of accredited national journals. Sinta is also a database or data center for accredited national journals. Thus, it can be used as a destination for reference seekers as national journals with quality that has been recognized by the Ministry of Education and Culture, Research and Technology. The findings of this study are also to determine the important position of MCSs in Indonesia, both industrially and organizationally.
The mapping process of the literature analyzed is very structured, starting from 2000 to 2022 to provide updated opportunities for future researchers regarding management control systems, as well as provide a complete understanding of the study of MCSs in Indonesia, through the simplification of this literature review study. Of course, this provides a very important contribution for future researchers to rethink the strategic position of MCSs in the future.
This research is structured with several sections that are useful for readers to make it easier to understand the concepts, models, and contents of this research. This research is divided into five sections. Section 1 describes the introduction which is shown at the beginning, then Section 2 discusses the literature review, where a collection of previous literature carefully described and connected practically is presented. Section 3 provides the research methods used to solve this research problem. Section 4 contains the results and discussions with some of the previous literature in Section 5. The final section of this research, Section 6, describes the conclusions from the results of the research that has been carried out and opportunities for useful information for interested parties, and the shortcomings of this research which are expected to be improved by further researchers.

LITERATURE REVIEW
As a field of research, management accounting is a productive area and produces many findings that have been used in the business field since the last century (SeTin & Augustine, 2020). Management accounting research, which started with a focus on cost accounting, has now covered a wide variety of domains (Elhossade et al., 2022). The research areas covered vary, ranging from managerial techniques, such as cost analysis (SeTin & Augustine, 2020) and break-even point (Setyaningsih & Nengzih, 2020) to environmental and quality management.

RESEARCH METHODOLOGY
This research was conducted using a literature review method. Literature review research is research that examines or critically reviews knowledge, ideas, or findings in the body of academic-oriented literature as well as formulating theoretical and methodological contributions to certain topics. In this study, what was studied were articles from the Sinta 2 accredited journals got using the keywords -management‖, -budget‖, -control system‖, -management control system‖, -balanced scorecard‖, -locus of control‖, -budget slack‖, and -control‖. From these keywords, there were 29 journal publishers registered with Sinta 2, with 5,644 articles, and articles with themes that match keywords (MCS) were 61 articles or about 0.88% or 1%. Each journal is searched according to keywords. This is under the article written by SeTin and Augustine (2020). Those keywords are still -management‖ and -accounting‖ as done by Ratnaningrum et al. (2018). So that the authors classify specifically to the MCS. This literature review uses literature/articles published in 2000-2022, which can be accessed in full text in pdf and scholarly formats (peer-reviewed journals). The reviewed research journal articles on MCS have been published in the Sinta 2 accredited journals in Indonesia and can be accessed for free or in an open journal.
This literature review was analyzed using the narrative method by grouping similar extracted data according to the results measured to answer the objectives, then collected and made a journal summary, including the name of the researcher, year of publication of the journal, research title, method and summary of the results or findings. The summary of the research journals has been entered in the tables according to the format. To further clarify the analysis of the abstract and full text, the journals were read and examined. The journal summary then analyzed the contents of the research objectives and research results/findings.

EMPIRICAL RESULTS
The selection process for research journals is quite strict, so the results of the tabulation of journals that have been carried out are presented as follows.  Table 1 shows 29 publishers accredited by Sinta 2 with a total publication of articles during the years 2000-2022, namely 5644 publications. These publishers display scientific publications in accounting widely, including management accounting.
After the sorting or tabulation process was carried out, 101 articles were got according to the research theme, namely MCS. These 101 articles from 29 Sinta 2 publishers in Indonesia were spread from 2000 to 2022.     Table 3 displays the object of research that has been carried out in 61 articles. The objects of this research are grouped into 3 sectors, namely the public, private and university sectors. Based on the observations made, it was found that 13 articles used research objects from the public sector, 41 articles conducted research objects in the private sector, and 7 articles used research objects in the university sector. These results show that during the years 2000-2022, the direction of the research object used to examine the MCS is still dominant in the private sector, amounting to 67% of the total 61 articles.     Table 5 describes the level of analysis that has been carried out in 61 previous articles. This level of analysis is grouped into 5 categories, namely staff level, manager level, organizational level, business unit, and department level. The results of the observations found that 3 articles used the staff level (non-management), 10 articles were conducted at the manager level, 31 articles were conducted at the organizational level, 17 articles were conducted at the business unit, while at the departmental level there were no MCS articles conducting research. This finding provides information that the level of analysis of MCS articles in Sinta 2 accredited journals during 2000-2022 was dominated by the organizational level, amounting to 50% of the 61 articles.     Table 6 describes the rate of return of the questionnaire on articles that use primary data involving respondents. Based on the mapping observations that the authors made, there are only a few articles that explain the rate of return of the questionnaire. The rest does not explain. This means that researchers tend not to include the rate of return or response rate in analyzing the questionnaire data that has been given not confirming the response rate.
The next analysis was carried out by applying the path mapping analysis method in the 61 articles that had been got. This path mapping is carried out to provide information on the direction of learning management control systems during 2000-2022 in Indonesia. The glossary presentation carried out is shown as follows:   Indonesia. The figure is compiled based on the literature that has been got and analyzed using path analysis, so it looks like that. Basically, the display is the same as several tables that have been prepared previously (see Tables 3, 4, 5, and 6). Based on observations, it is shown that the direction of MCS research in Indonesia leads to organizational performance (KO), business unit performance (KUB), management accounting practices (PAM), and the quality of government financial reports (LKKL).

DISCUSSION
Control is a process to ensure that activities lead to the desired goals (Eulerich, Kremin, Saunders, & Wood, 2021). To ensure this, good management is needed. The management control process itself includes all methods, procedures, and means, including the management control system used by all members of management, to ensure compliance with organizational policies and strategies (Anthony & Govindarajan, 2007). In the business world, MCSs play an important role in keeping an organization/ company going concern in an uncertain environment (Gamariel, Bomani, Musikavanhu, & Juana, 2022). Changes in the internal and external environment, of course, have a major impact on today's business world. Importantly, an MCS can collect and use the information to evaluate the performance of existing resources, such as human, machine, and financial resources, while keeping in view the company's strategy (Hosen, Hui, Suliman, & Rahman, 2011). In the world of small business, it is also necessary to apply MCS, which is applied to set goals and can provide motivation for people in the company (Sanchez-Expósito & Naranjo-Gil, 2012; Axelsson, Johansson, & Rosensten-Berg, 2012).
Small companies also have a formal control system that is still basic in its application (Anthony & Govindarajan, 2007), so even a small company without control is very unlikely to achieve its organizational goals properly (Rosanas & Cugueró-Escofet, 2012). This relates to MSMEs, which aim to create bigger companies in the future. Other researchers such as Davila (2005) and Axelsson et al. (2012) state that the success of a company does not solely depend on market conditions, but on an important condition of management's ability to carry out informal controls to become more formal. Therefore, the existing informal control system may play a very important role at every stage of the company's development.
Not all of the pieces of literature that have been reviewed in-depth, use research objects using MSMEs. This actually shows that MSMEs are still underestimated by some researchers because it is very difficult to get fundamental data and meet the perpetrators. However, this literature review was conducted hoping to provide information on opportunities for future researchers about the direction of MCS research so far in Indonesia, especially for MSME actors. Based on the results of a survey conducted by Ejiogu and Jain (2012) that small businesses are the -backbone‖ of economies worldwide by representing companies in democratic countries, the role of SMEs in the Indonesian economy can be seen from their current position in the business world. The current position of MSMEs is considered as 1) the key players in economic activities in various sectors (

CONCLUSION
The results of the collection and observation of several research works of literature conclude that the direction of MCS research during 2000-2022 in Indonesia leads to organizational performance, business unit performance, management accounting practices, and the quality of government financial reports. MCS is still widely studied in organization's performance, it seems because many researchers like fundamental analysis in researching management accounting research, and fundamental data is easy to get because many companies have published their financial statements on the company's website and on the stock exchange floor (Indonesia Stock Exchange, IDX). MCSs are also investigated on various business unit performances of an organization because some researchers seem to still think that the bigger the company/organization, the more complex the business unit is.
This makes researchers interested in knowing the control capabilities of each of the organization's business units, thus affecting the sustainability of the organization in the future. Some researchers also detect management accounting practices in a survey in several organizations, literacy with this model seems to want to show the suitability of implementing the MCS adopted by organizations so far, so they want to bring up various unique findings from MCS to development of management accounting practices in the future. Some literature also shows the direction of MCS towards detecting the quality of government financial reports. This is interesting, because performing government institutions is very important to the public, especially their periodic information with this research. It actually shows that government institutions have also started implementing MCS so that their performance and targets can be monitored by the public every year. Until now, some MCS literature provides various research directions, but it is still rare for MSMEs to apply it, this certainly opens up opportunities for future researchers to conduct MCS research with the MSME object in Indonesia. This research shows that government agencies have implemented MCS so that their performance and targets can be monitored by the public every year. Until now, some MCS literature provides various research directions, but it is still rare for MSMEs to apply it. This certainly opens up opportunities for future researchers to conduct MCS research with the MSME object in Indonesia. The researchers also have an opportunity to conduct a cross-country study to get international insight into MCSs.
This research has some limitations, such as the literature review process which is carried out only in Indonesia, considering the current industrial era, literature reviews should also be carried out in several internationally accredited journals in several countries to provide broader insights for researchers around the world. The journal selection process can also be done by adding journal criteria not only to the indexed journals of Sinta 2 but also in Sinta 1, hoping to provide more general and useful information for important decision-makers.