Management Control System in Islamic Microfinance Institution: A Case Study of BMT Owned by Pesantren in Pamekasan
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Abstract
This study explores the design and implementation of Management Control Systems (MCS) in Islamic microfinance institutions, focusing on Baitul Maal wat Tamwil (BMT) owned by Islamic boarding schools (pesantren) in Pamekasan. Using a qualitative case study approach, data were collected through interviews, observations, and document analysis to gain insights into how MCS operates in a unique religious and cultural context. The analysis is guided by the Merchant and Van der Stede framework, which categorizes control into results control, action control, personnel control, and cultural control. Findings reveal that BMTs within pesantren emphasize cultural and personnel controls rooted in Islamic values and pesantren traditions, while results and action controls are adapted to balance both financial performance and socio-religious objectives. A unique finding is that employee recruitment often involves performing shalat istikharah (prayer for guidance) by the management or kyai (religious leader) before finalizing hiring decisions, reflecting a deep integration of spiritual values in personnel management. This study contributes to the literature on management control systems by highlighting how religious-based organizations integrate spiritual and economic goals in their management practices. It also provides practical implications for improving governance and accountability in Islamic microfinance institutions.
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How to Cite
Fitria, M., RF, R. D. Z., & Syaifullah, M. (2025). Management Control System in Islamic Microfinance Institution: A Case Study of BMT Owned by Pesantren in Pamekasan. ProBisnis : Jurnal Manajemen, 16(5), 1051–1059. Retrieved from https://ejournal.joninstitute.org/index.php/ProBisnis/article/view/1188
References
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Crespo, N. F., Rodrigues, R., Samagaio, A., & Silva, G. M. (2019). The adoption of management control systems by start-ups: Internal factors and context as determinants. Journal of Business Research, 101(November 2018), 875–884. https://doi.org/10.1016/j.jbusres.2018.11.020
Davila, A., & Foster, G. (2007). Management control systems in early-stage startup companies. Accounting Review, 82(4), 907–937. https://doi.org/10.2308/accr.2007.82.4.907
Hasbi, H. (2015). Islamic Microfinance Institution: The Capital Structure, Growth, Performance and Value of Firm in Indonesia. Procedia - Social and Behavioral Sciences, 211, 1073–1080. https://doi.org/10.1016/j.sbspro.2015.11.143
Hermawan, M., & Triana Putri, J. (2018). Can Management Control Systems be applied in SME? A case study of small manufacturing in Indonesia. The Indonesian Journal of Accounting Research, 21(2), 227–250. https://doi.org/10.33312/ijar.359
King, R., & Clarkson, P. (2015). Management control system design, ownership, and performance in professional service organisations. Accounting, Organizations and Society, 45, 24–39. https://doi.org/10.1016/j.aos.2015.06.002
Lawhaishy, Z. B., Haron, R., & Othman, A. H. A. (2024). Islamic Micro-financing forSMEs Towards Its Sustainability: An Experience From Libya. In Islamic Finance and Sustainable Development: A Global Framework for Achieving Sustainable Impact Finance (pp. 32–46). https://doi.org/10.4324/9781003468653-6
Malik, F. A. (2025). Empowering communities: Navigating the Scope and Impediments of Islamic Microfinance in India. In The Routledge Handbook of Islamic Economics and Finance (pp. 342–360). https://doi.org/10.4324/9781003168508-27
Malmi, T., & Brown, D. A. (2008). Management control systems as a package-Opportunities, challenges and research directions. Management Accounting Research, 19(4), 287–300. https://doi.org/10.1016/j.mar.2008.09.003
Merchant, K. A., & Otley, D. (2020). Beyond the systems versus package debate. Accounting, Organizations and Society, 86. https://doi.org/10.1016/j.aos.2020.101185
Merchant, K., & Van der Stede, W. (2017). Management Control System (4th ed.). Pearson Education.
Mohamud, I. H., & Mohamud, A. A. (2023). Impact assessment of Islamic microfinance on small and medium-sized enterprises in Mogadishu, Somalia. International Journal of Advanced and Applied Sciences, 10(9), 174–185. https://doi.org/10.21833/ijaas.2023.09.020
Muin, R., Syamsuri, H., & Possumah, B. T. (2025). The evolution of Islamic finance in the digital age: Analyzing asset growth patterns and stakeholder attitudes in emerging market economies. International Journal of Innovative Research and Scientific Studies, 8(2), 3311–3322. https://doi.org/10.53894/ijirss.v8i2.6001
Putra, M. R. A. (2023). Analisis Peran Koperasi Barokah Pondok Pesantren dalam Meningkatkan Pendapatan Dayah Modern Yapena Kecamatan Muara Satu Kota Lhokseumawe. repository.ar-raniry.ac.id. https://repository.ar-raniry.ac.id/id/eprint/37573/
Rahayu, N. S. (2020). The intersection of islamic microfinance and women’s empowerment: A case study of baitul maal wat tamwil in indonesia. International Journal of Financial Studies, 8(2), 1–13. https://doi.org/10.3390/ijfs8020037
Rahman, R. A., & Dean, F. (2013). Challenges and solutions in Islamic microfinance. Humanomics, 29(4), 293–306. https://doi.org/10.1108/H-06-2012-0013
Rohmaniyah, W. (2020). Pengembangan Baitul Mal Wat Tamwil Berbasis Nilai- Nilai Santri (Studi Pada BMT UGT Sidogiri). Al Huquq Journal of Indonesian Islamic Economic Law, 2(1), 1–29.
Rozzani, N., Rahman, R. A., Mohamed, I. S., & Yusuf, S. N. S. (2013). Applying technology: Issues in microfinance operations. Middle East Journal of Scientific Research, 17(3), 374–381. https://doi.org/10.5829/idosi.mejsr.2013.17.03.12165
Sandino, T. (2007). Introducing the first management control systems: Evidence from the retail sector. Accounting Review, 82(1), 265–293. https://doi.org/10.2308/accr.2007.82.1.265
Saputra, A. A. (2023). Peran Koperasi Pondok Pesantren (Kopontren) Jarinabi Mart dalam Meningkatkan Ekonomi Pondok Pesantren Jarinabi. Jurnal Ilmiah Ekonomi Islam. https://www.jurnal.stie-aas.ac.id/index.php/jei/article/view/10820
Septianingsih, R., Abdullah, A., & Salleh, M. Z. M. (2024). A Systematic Review: Challenge of Islamic Microfinance Baitul Maal Wat Tamwil in Indonesia. In Contributions to Management Science: Vol. Part F2529 (pp. 19–26). https://doi.org/10.1007/978-3-031-48770-5_3
Simons, R. (1994). How new top managers use control systems as levers of strategic renewal. Strategic Management Journal, 15(3), 169–189. https://doi.org/10.1002/smj.4250150301
Ummari, H., & Priantina, A. (2023). Optimizing the role of Baitul Ma’al in eradicating poverty in the province of Aceh: Issues and solutions. In Islamic Economic Institutions In Indonesia: Are They Successful In Achieving The Maqasad-al-shari’ah (pp. 15–41). https://doi.org/10.1142/9789811272691_0002
van der Kolk, B., van Veen-Dirks, P. M. G., & ter Bogt, H. J. (2019). The Impact of Management Control on Employee Motivation and Performance in the Public Sector. European Accounting Review, 28(5), 901–928. https://doi.org/10.1080/09638180.2018.1553728
Amri, M. C. E. L., Mohammed, M. O., & AlKhalili, M. M. S. (2024). FINTECH ADOPTION AND ITS INVESTMENT IMPACT IN ISLAMIC SOCIAL FINANCE: THE CASE OF ZAKAT. Qudus International Journal of Islamic Studies, 12(2), 213–254. https://doi.org/10.21043/qijis.v12i2.17069
Anwar, M. K., Ridlwan, A. A., & Laili, W. N. R. (2023a). THE ROLE OF BAITUL MAAL WAT TAMWIL IN EMPOWERING MSMES IN INDONESIA : A STUDY OF INDONESIAN ISLAMIC MICROFINANCE INSTITUTIONS Article history : Keywords : BMT Problems ; Economic Empowerment ; The Role of Baitul Maal wat Tamwil in Empowering Msmes in Indo. International Journal of Professional Business Review, 8(4), 1–20.
Anwar, M. K., Ridlwan, A. A., & Laili, W. N. R. (2023b). THE ROLE OF BAITUL MAAL WAT TAMWIL IN EMPOWERING MSMES IN INDONESIA: A STUDY OF INDONESIAN ISLAMIC MICROFINANCE INSTITUTIONS. International Journal of Professional Business Review, 8(4). https://doi.org/10.26668/businessreview/2023.v8i4.913
As’illah, Firdausi, M. I., Rohmah, S., & Rusyida, W. Y. (2023). PERAN KOPERASI LUMINTU DALAM MENSEJAHTERAKAN SANTRI:(Studi Kasus Pada Pondok Pesantren Bustanul Mansuriyah). Sahmiyya: Jurnal Ekonomi Dan Bisnis, 2(1). https://e-journal.uingusdur.ac.id/sahmiyya/article/view/898
Auzair, S. M. (2015). A configuration approach to management control systems design in service organizations. Journal of Accounting and Organizational Change, 11(1), 47–72. https://doi.org/10.1108/JAOC-08-2012-0064
Barokah, L., Nugroho, L., & Sugiarti, D. (2023). Kajian Peran Koperasi Pesantren (Kopontren) dalam Meningkatkan Jiwa Kewirausahaan (Studi Kasus Pondok Pesantren Ar-Rowiyah, Mancengan, Bangkalan, Madura). Trending:Jurnal Manajemen Dan Ekonomi, 1(1). https://jurnaluniv45sby.ac.id/index.php/Trending/article/view/469
Chen, C. X., Lill, J. B., & Vance, T. W. (2020). Management Control System Design and Employees’ Autonomous Motivation. Journal of Management Accounting Research, 32(3), 71–91. https://doi.org/10.2308/jmar-17-068
Crespo, N. F., Rodrigues, R., Samagaio, A., & Silva, G. M. (2019). The adoption of management control systems by start-ups: Internal factors and context as determinants. Journal of Business Research, 101(November 2018), 875–884. https://doi.org/10.1016/j.jbusres.2018.11.020
Davila, A., & Foster, G. (2007). Management control systems in early-stage startup companies. Accounting Review, 82(4), 907–937. https://doi.org/10.2308/accr.2007.82.4.907
Hasbi, H. (2015). Islamic Microfinance Institution: The Capital Structure, Growth, Performance and Value of Firm in Indonesia. Procedia - Social and Behavioral Sciences, 211, 1073–1080. https://doi.org/10.1016/j.sbspro.2015.11.143
Hermawan, M., & Triana Putri, J. (2018). Can Management Control Systems be applied in SME? A case study of small manufacturing in Indonesia. The Indonesian Journal of Accounting Research, 21(2), 227–250. https://doi.org/10.33312/ijar.359
King, R., & Clarkson, P. (2015). Management control system design, ownership, and performance in professional service organisations. Accounting, Organizations and Society, 45, 24–39. https://doi.org/10.1016/j.aos.2015.06.002
Lawhaishy, Z. B., Haron, R., & Othman, A. H. A. (2024). Islamic Micro-financing forSMEs Towards Its Sustainability: An Experience From Libya. In Islamic Finance and Sustainable Development: A Global Framework for Achieving Sustainable Impact Finance (pp. 32–46). https://doi.org/10.4324/9781003468653-6
Malik, F. A. (2025). Empowering communities: Navigating the Scope and Impediments of Islamic Microfinance in India. In The Routledge Handbook of Islamic Economics and Finance (pp. 342–360). https://doi.org/10.4324/9781003168508-27
Malmi, T., & Brown, D. A. (2008). Management control systems as a package-Opportunities, challenges and research directions. Management Accounting Research, 19(4), 287–300. https://doi.org/10.1016/j.mar.2008.09.003
Merchant, K. A., & Otley, D. (2020). Beyond the systems versus package debate. Accounting, Organizations and Society, 86. https://doi.org/10.1016/j.aos.2020.101185
Merchant, K., & Van der Stede, W. (2017). Management Control System (4th ed.). Pearson Education.
Mohamud, I. H., & Mohamud, A. A. (2023). Impact assessment of Islamic microfinance on small and medium-sized enterprises in Mogadishu, Somalia. International Journal of Advanced and Applied Sciences, 10(9), 174–185. https://doi.org/10.21833/ijaas.2023.09.020
Muin, R., Syamsuri, H., & Possumah, B. T. (2025). The evolution of Islamic finance in the digital age: Analyzing asset growth patterns and stakeholder attitudes in emerging market economies. International Journal of Innovative Research and Scientific Studies, 8(2), 3311–3322. https://doi.org/10.53894/ijirss.v8i2.6001
Putra, M. R. A. (2023). Analisis Peran Koperasi Barokah Pondok Pesantren dalam Meningkatkan Pendapatan Dayah Modern Yapena Kecamatan Muara Satu Kota Lhokseumawe. repository.ar-raniry.ac.id. https://repository.ar-raniry.ac.id/id/eprint/37573/
Rahayu, N. S. (2020). The intersection of islamic microfinance and women’s empowerment: A case study of baitul maal wat tamwil in indonesia. International Journal of Financial Studies, 8(2), 1–13. https://doi.org/10.3390/ijfs8020037
Rahman, R. A., & Dean, F. (2013). Challenges and solutions in Islamic microfinance. Humanomics, 29(4), 293–306. https://doi.org/10.1108/H-06-2012-0013
Rohmaniyah, W. (2020). Pengembangan Baitul Mal Wat Tamwil Berbasis Nilai- Nilai Santri (Studi Pada BMT UGT Sidogiri). Al Huquq Journal of Indonesian Islamic Economic Law, 2(1), 1–29.
Rozzani, N., Rahman, R. A., Mohamed, I. S., & Yusuf, S. N. S. (2013). Applying technology: Issues in microfinance operations. Middle East Journal of Scientific Research, 17(3), 374–381. https://doi.org/10.5829/idosi.mejsr.2013.17.03.12165
Sandino, T. (2007). Introducing the first management control systems: Evidence from the retail sector. Accounting Review, 82(1), 265–293. https://doi.org/10.2308/accr.2007.82.1.265
Saputra, A. A. (2023). Peran Koperasi Pondok Pesantren (Kopontren) Jarinabi Mart dalam Meningkatkan Ekonomi Pondok Pesantren Jarinabi. Jurnal Ilmiah Ekonomi Islam. https://www.jurnal.stie-aas.ac.id/index.php/jei/article/view/10820
Septianingsih, R., Abdullah, A., & Salleh, M. Z. M. (2024). A Systematic Review: Challenge of Islamic Microfinance Baitul Maal Wat Tamwil in Indonesia. In Contributions to Management Science: Vol. Part F2529 (pp. 19–26). https://doi.org/10.1007/978-3-031-48770-5_3
Simons, R. (1994). How new top managers use control systems as levers of strategic renewal. Strategic Management Journal, 15(3), 169–189. https://doi.org/10.1002/smj.4250150301
Ummari, H., & Priantina, A. (2023). Optimizing the role of Baitul Ma’al in eradicating poverty in the province of Aceh: Issues and solutions. In Islamic Economic Institutions In Indonesia: Are They Successful In Achieving The Maqasad-al-shari’ah (pp. 15–41). https://doi.org/10.1142/9789811272691_0002
van der Kolk, B., van Veen-Dirks, P. M. G., & ter Bogt, H. J. (2019). The Impact of Management Control on Employee Motivation and Performance in the Public Sector. European Accounting Review, 28(5), 901–928. https://doi.org/10.1080/09638180.2018.1553728