Universitas Indonesia Conferences, Asia Pacific Business and Economics Conference

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Belief Control and Performance: The Role of Contingent-Fit between Strategic Risk, Strategic Uncertainty and Levers of Control
Ancella Anitawati Hermawan, Emil Bachtiar, Panggah Tri Wicaksono, Nia Pramita Sari

Last modified: 2017-12-22

Abstract


This study aims to examine the effect of belief control on the performance of business units or companies with contingent-fit between strategic risk-uncertainty and levers of control (interactive control system, boundary control system, and diagnostic control system) as a moderating variable. The fit model was developed from fitness landscape theory and model used by Jermias and Gani (2005). This research proves that belief control system has a positive effect on the performance of business unit or company. This means that the higher the application of belief control system the better the performance of the company. This finding also found that contingent-fit between strategic risk-uncertainty and combination of levers of controls negatively affects the relationship between belief control system and performance. This indicates that if the business unit or company has alignment between the strategic risk-uncertainty and the levers of control, then the difference of performance will be smaller between the firm with high belief control and the firm with low belief control.


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