Culture control, capability and performance: evidence from creative industries in Indonesia

Abstract

Purpose

The purpose of this study is to investigate the relationship between culture control, capability and creative industries’ performance. Capability which is used in this study is organizational creativity and innovation.

Design/methodology/approach

This study uses the owner and the manager of creative industries as samples. Total amount of the questionnaires which are used in this data are 270. Data for this study is primary data in respondents’ perceptions which are collected via mail to all respondents . AMOS 16 program used as an aid tool to solve any problems that may emerge in structural equation modeling (SEM).

Findings

The result from hypotheses testing showed that cultural control positively influenced the capabilities of an organization, creativity facilitated the innovation formation. Finally organizational creativity and innovation influenced the SME’s performance.

Research limitations/implications

This study has a drawback that inherently attached with the chosen method. This study tests the relationship among variables that have a large amount of samples at a given point of time

Practical implications

The result from this study is expected to be a reference in management in using its control that will influence the firm’s capability and furthermore it will influence the SME’s performance to maintain its competitive advantage.

Originality/value

How MCS influence the creativity is still limited. This study investigated innovation not only as an outcome variable, but also as part of consequences of organizational creativity.

Citation

Ismail, T. (2016), "Culture control, capability and performance: evidence from creative industries in Indonesia", Asian Review of Accounting, Vol. 24 No. 2. https://doi.org/10.1108/ARA-01-2014-0014