Leveraging good university governance to enhance HEI's performance through the lens of ethical work climate

This study examines the role of management control systems (MCS) in enhancing the performance of Higher Education Institutions (HEIs) in Indonesia, focusing on the interaction between enabling and coercive control systems within the framework of ethical work climate (EWC) and good university governance (GUG). The research highlights the importance of creating a positive ethical work environment to improve the effectiveness of MCS and governance practices. A survey was conducted with lecturers and administrative staff from private universities across Indonesia, with data analyzed using Structural Equation Modelling (SEM) to test the relationships between EWC, MCS, GUG, and HEI performance. The findings reveal that both Enabling and Coercive Control Systems positively influence HEI performance and contribute to the improvement of GUG. Additionally, a positive EWC strengthens the effectiveness of both control systems, fostering trust, transparency, and employee engagement. The study provides theoretical insights into how MCS and ethical climates shape governance and performance in higher education, with practical implications for HEIs administrators to optimize MCS, balance control systems, and cultivate an ethical work environment to enhance institutional success. Future research could further explore the impact of leadership styles and external factors on the effectiveness of these systems in different higher education contexts.