Islamic Management Control Systems in SMEs: A Systematic Literature Review on Shariah Governance and Business Sustainability

Introduction: Management Control Systems (MCS) are important for guiding organizational activities toward the achievement of strategic objectives. However, the design and implementation of MCS in Small and Medium Enterprises (SMEs) are influenced by their limited resources, simple organizational structures, owner-centered management, and changing external environments. This study aims to identify and classify the internal and external determinants of MCS design and implementation in SMEs and to develop a conceptual framework based on existing empirical evidence. Methods: This research employs a Systematic Literature Review (SLR) using articles retrieved from the Scopus database. The review covers research articles published between 2010 and 2025 and applies predefined inclusion and exclusion criteria, with the selection process following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework. A total of 37 relevant articles were selected and thematically synthesized. Results: The findings indicate that MCS in SMEs consists of diverse mechanisms, including Levers of Control, formal control, and informal control. The determinants are classified into internal factors, namely firm size, managerial competence, organizational structure, and organizational culture and ownership, and external factors, namely competitive intensity, environmental uncertainty, and government regulation and institutional pressure. Managerial competence and organizational culture and ownership are among the most frequently identified determinants. SMEs tend to rely on flexible and informal controls, while formal controls become more relevant as business complexity increases. Conclusion and suggestion: This study concludes that MCS design in SMEs is context-dependent and shaped by the interaction between internal and external factors. Future research should empirically test the proposed framework across specific sectors and regional contexts.