The role of feedback and feed forward control system to improve competitive advantage of smes in Indonesia

Abstract

The purpose of this study is to investigate the influence of feedback and feed forward control as a part of management control system on knowledge and competitive advantage. Unlike previous studies which mostly focused on larger organization, this study focuses on SME which is still limited in developing countries. There are 157 SME managers in Indonesia that become respondent in this study. AMOS 21 program is used as a tool to solve the problems in SEM. The result of this study state that there is a positive relationship between the use of feedback and feed forward control to the improvement of knowledge and competitive advantage of SME.