Do Vision and Mission Really Matter? The Management Control Experiences of Reformed Public Hospitals in Indonesia

Abstract

Purpose: This study aims to investigate how reformed public hospitals in Indonesia design and implement their vision and mission as a management control (MC) mechanism. Theoretical framework: This study employs the Simon’s Levers of Control (LOC) framework and focuses on the belief systems lever. Design/methodology/approach: A semi-structured interview was used in this study to conduct qualitative research. The informants are 13 top management team (TMT) members from four BLUD public hospitals (PH) in Indonesia. The qualitative interview data were condensed, displayed, and analyzed. To analyze the data, the thematic deductive analysis approach was utilized. Findings: This study concluded that in Indonesia, reformed PH's vision and mission remain mostly reliant on those of the local government as well as the accreditation requirement for gaining legitimacy. It is also found that a vision and mission statement reflecting the core values of an organization can be a driver for the MC mechanism as a whole. Research, Practical & Social implications: This study has practical implications for policy making in the context of BLUD PH management. All hospital components should understand the hospital's vision and mission. It's also vital to establish a vision and mission statement that's relevant to the increasingly competitive business climate of health service providers in Indonesia, so that the strategies used can help the organization attain its goals. Originality/value: This is the first study to examine the relationships between vision and mission, as well as the overall management control system, in Indonesian public hospitals following the reform of the financial management status of public organizations. This study examines how relevant the vision and mission of public hospitals in Indonesia are, as well as how effectively they can adapt to a more competitive and business-focused organizational environment.