Does Organizational Culture and Digital Leadership Style Improve Sustainability Perfomance in The Digital Era?

Abstract

Introduction: In the era of Smart Society 5.0, organizational sustainability performance (OSP) has become a critical concern, requiring the integration of advanced management control systems (MCS), strategic management accounting (SMA), digital leadership styles (DLS) and organizational culture (OC).

Objectives: This study aims to investigates the impact of management control system (MCS), strategic management accounting (SMA), digital leadership styles (DLS) on the with organizational culture (OC) with culture serving as a moderating variable.

Methods: The research employs a quantitative method with sequential explanatory design, using questionnaires and interviews to gather primary data from Google forms distributed to all Indonesian industries (energy, basic materials, industrials, consumer non-cyclicals, infrastructure, consumer cyclicals, property and real estate, and healthcare) both registered in IDX IC.

Results: The results received a total of 870 responses and 381 were checked after removing data that did not match industry criteria and outliers. The study indicates that MCS, SMA, and DLS have a positive impact on OSP. OC moderates the positive influence of SMA on organizational sustainability performance (OSP), but cannot strengthen the positive influence of MCS and DLS on OSP.

Conclusions: This study enhances OSP research by incorporating digitization in DLS and OC, and providing empirical evidence on the role of OC as a moderation variable. This study highlights the importance of ISO 27000 for digitalization in Indonesia, guiding the implementation of OSP and ensuring effective global and international competition for industries. The study’s limited sampling, subjectivity, and respondent biases.