The Role of Strategic Agility for Sustainable Business Performance: A Management Control and Accounting System Approach

Abstract

The Purpose: The study examines the impact of sustainable management control systems and sustainable management accounting systems on sustainable business performance and analyses whether strategic agility moderates these relationships. The research addresses the problem of how internal sustainability mechanisms influence long-term business outcomes in dynamic environments. Methods: The study uses a quantitative approach with data collected via questionnaires from publicly listed companies on the Indonesia Stock Exchange (IDX). The sample consists of 265 issuers listed on IDX, representing various sectors with an emphasis on organisational practices related to sustainability and performance. The researchers employed structural equation modelling using the Statistical Package for the Social Sciences (SPSS) Analysis of Moment Structures (AMOS) 22 to test the hypotheses, along with sensitivity and expansion tests. The results indicate that both sustainable management control systems and sustainable management accounting systems significantly enhance sustainable business performance. However, strategic agility does not moderate these relationships. Limitations: The findings are limited to IDX-listed companies and thus may not be generalisable to non-listed firms. The study also did not account for the adoption of specific international sustainability standards, limiting insights into innovation-driven sustainability practices. Contribution: This study contributes to the literature by integrating strategic agility into the sustainability-performance framework and highlighting the roles of internal control and accounting systems. It offers empirical evidence from an emerging market context, emphasising structural over strategic drivers of sustainable business performance.