| Résumé: | This study aimed to investigate the impact of the Shariah Supervisory Board as
a mediator and competitive strategy as a moderator on the relationship between the
management control system and the performance of Islamic banks in Indonesia. The
management control system of Islamic banks in Indonesia was studied based on
Simon's levers of control, and the performance was evaluated using the Maqasid
Shariah concept. The study included 128 respondents from 32 Islamic banks registered
under the Financial Services Authority (OJK), and the hypothesis testing was
conducted using PLS-SEM with Warppls software version 8.0. The results indicated
that the boundary system had a positive and significant impact on the performance of
Islamic banks in Indonesia. Furthermore, the Shariah Supervisory Board acted as a
mediator in the relationship between the boundary system and the performance of
Islamic banks, and the interactive control system. All the Islamic banks in Indonesia
utilized low-cost strategies that facilitated the implementation of belief and boundary
systems. The implications of this research confirm that the management control system
will improve the performance of Islamic banks with the support of the functions and
roles of the Shariah supervisory board. The study also demonstrated that integrating of
agency, stewardship, and stakeholder theories influenced corporate governance
implementation in Islamic banks.
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