The Role of Management Control Systems and Automation Implementation Towards Enhancing Indonesian Fintech Company Performance

Abstract

This study examines the role of Management Control Systems (MCS) in implementing automation within FinTech firms. The study aims to understand how MCS influences and relates to the design of automation systems to enhance overall FinTech performance in the dynamic FinTech environment. Using the quantitative method, the study analyses the relationship between MCS, specifically its dual coercive and enabling formalization aspects, and the design of automation systems. The findings reveal that a well-designed MCS incorporating coercive and enabling formalization can optimize the automation design and improve operational efficiency. This balanced approach enhances the adaptability of automation systems and supports employee performance and innovation, ultimately improving FinTech performance in the fast-paced FinTech industry. The study provides novel insights into the intersection of MCS and automation, offering valuable implications for designing and implementing control systems in technology-driven financial services organizations. It challenges existing assumptions about the rigidity of automated systems. It demonstrates how MCS can introduce a balance between control and flexibility to support the unique needs of the FinTech environment.