Citation:

Ida Farida, Aryanto. "Dynamics of Management Control Practices and Green Innovation in Central Java Real Estate" International Research Journal of Economics and Management Studies, Vol. 5, No. 5, pp. 85-92, 2026. Crossref. http://doi.org/10.56472/25835238/IRJEMS-V5I5P110

Abstract:

This study aims to understand the dynamics of Management Control Systems (MCS) practices and green innovation in real estate companies in Central Java within the context of sustainable development. Using a qualitative approach with an interpretive paradigm and phenomenological methods, this study explores the experiences and interpretations of managers and decision-makers regarding sustainability implementation at the organizational level. Data were obtained through in-depth interviews, limited observations, and company document analysis, which were then analyzed thematically. The results indicate that MCS practices are still dominated by a financial orientation and project-based control through budgeting mechanisms, cost monitoring, and margin evaluation. Sustainability aspects have begun to be integrated, but have not yet become key performance indicators and have not been fully institutionalized in all elements of the control system. The implemented green innovations are incremental and pragmatic, such as energy efficiency, natural ventilation design, water management, and construction waste reduction. Innovation decisions are heavily influenced by economic rationality and market price sensitivity. The findings also indicate that the relationship between MCS and green innovation is ambivalent and contextual. On the one hand, the dominance of financial indicators limits radical innovation; on the other hand, cost control encourages creativity in efficient, environmentally friendly solutions. Regulatory factors, leadership, organizational culture, and regional market characteristics also influence these dynamics. This study confirms that the integration of SPM and green innovation in the Central Java real estate sector is a socially negotiated evolutionary process, not an instant strategic transformation.

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Keywords:

Management Control System, Green Innovation, Sustainable Development, Real Estate Industry, Phenomenological Approach.