The Moderating Role of the Lever of Control (LoC) in the Impact of Culture, Strategy, and Environmental Uncertainty on Firm Performance

Abstract

This study examines the impact of corporate culture, strategic orientation, and environmental uncertainty on firm performance, focusing on the moderating role of the Lever of Controls (LoC). Primary data were collected through a survey involving 203 respondents from both listed and unlisted companies in Indonesia on the Indonesia Stock Exchange. Firm performance was measured using customer satisfaction, revenue, profit growth, return on investment, and market share. The findings reveal that corporate culture and strategic orientation significantly enhance firm performance. However, environmental uncertainty was found to have no direct impact on business performance. Furthermore, the moderating role of the LoC was not validated, suggesting that the relationship between management control systems and performance is complex and requires further investigation, particularly in uncertain environments. This research provides valuable insights for practitioners, emphasizing that firm performance is strongly influenced by corporate culture, strategic orientation, and effective management of environmental uncertainty.Penelitian ini mengkaji pengaruh budaya perusahaan, orientasi strategis, dan ketidakpastian lingkungan terhadap kinerja perusahaan, dengan fokus pada peran moderasi Lever of Controls (LoC). Data primer dikumpulkan melalui survei yang melibatkan 203 responden dari perusahaan terdaftar maupun tidak terdaftar di Bursa Efek Indonesia. Kinerja perusahaan diukur menggunakan kepuasan pelanggan, pendapatan, pertumbuhan laba, pengembalian investasi, dan pangsa pasar. Temuan penelitian menunjukkan bahwa budaya perusahaan dan orientasi strategis secara signifikan meningkatkan kinerja perusahaan. Namun, ketidakpastian lingkungan tidak memiliki dampak langsung terhadap kinerja bisnis. Selain itu, peran moderasi LoC tidak terkonfirmasi, yang menunjukkan bahwa hubungan antara sistem pengendalian manajemen dan kinerja bersifat kompleks dan memerlukan penelitian lebih lanjut, terutama dalam lingkungan yang tidak pasti. Penelitian ini memberikan wawasan berharga bagi praktisi, menekankan bahwa kinerja perusahaan sangat dipengaruhi oleh budaya perusahaan, orientasi strategis, dan pengelolaan ketidakpastian lingkungan yang efektif.