ORGANIZATIONAL PERFORMANCE AND INTERNAL CONTROL SYSTEMS: EVIDENCE FROM NIGERIAN SMES
DOI:
https://doi.org/10.5281/zenodo.12820534Keywords:
Internal control systems Organizational performance Small and Medium Scale Enterprises (SMEs) Business growth Operational efficiencyAbstract
This study explores the impact of internal control systems on the organizational performance of Small and Medium Scale Enterprises (SMEs) in Ondo State, Nigeria. While previous research has predominantly focused on large firms, this study aims to address the gap by examining how internal control systems influence various aspects of SME performance. Data was collected from 323 SMEs using stratified and random sampling techniques, and analyzed through descriptive statistics and multiple regression analysis. The results reveal a significant positive relationship between internal control systems and organizational performance proxies, including business growth, survival, and operational efficiency. Aggregated analysis further confirms a positive correlation between internal control systems and overall organizational performance. The findings highlight the importance of implementing robust internal control systems in SMEs to enhance productivity, foster business growth, and improve organizational performance. The study advocates for the adoption of internal control systems by SMEs to ensure their growth and sustainability while minimizing inefficiencies. Additionally, it recommends that government agencies providing financial support and advisory services to SMEs should emphasize the importance of internal control systems
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Copyright (c) 2024 Adebayo Oladipo Alabi, Chidinma Ifeoma Okoye , Ibrahim Yusuf Akinpelu
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