Management Control System and Hospital Performance Among Public Sector: Is Environment Uncertainty and Information Technology the Issue?

  • MF. Arrozi Adhikara, Julius N. Sumarli, Andry, Deden Sutisna

Abstract

This study examines the issue that contingency behavior does not yet have a comprehensive theoretical and empirical study in the institutional relationship between management control systems and work outcomes in a situational perspective in the application of good hospital governance. The purpose of this study was to analyze the significant influence together between environmental uncertainty, information technology, and hospital management control systems on hospital organizational performance.This research uses survey research methods with an explanatory approach to causality research. The unit of analysis is medical and non-medical employees of health service industry.Time horizon uses cross section. The sampling technique is saturated sampling. This study uses Path Analysis, the number of samples collected was 188 samples.The results showed that there was a significant simultaneous influence between environmental uncertainty, information technology, and hospital management control systems on organizational organizational performance; there is a positive influence of environmental uncertainty on the Management Control System; there is a positive influence of information technology on Hospital Management Control Systems; there is a positive influence of the Management Control System on Hospital Organizational Performance; there is a positive influence of Environmental Uncertainty on Hospital Organizational Performance; and there is a positive influence of Information Technology on Organizational Performance.The research findings are that the hospital carries out a budget preparation process with an optimistic approach in determining organizational targets. Thus, the hospital is able to perform efficiency performance, although it does not produce effective performance, hospital sustainability in its operational activities.

Published
2020-06-01