The effect of internal control on organizational performance in the telecommunications industry in South South and South East Nigeria
Keywords:
control systems , internal control , management, organizational performance , telecommunications industryAbstract
The study focused on effect of admin internal control on performance in telecommunications industry in South South and South East Nigeria. The study employed a descriptive survey research design. Instrument adopted for the study is a structured questionnaire based on simple random sampling method. In addition, interview was also employed to serve as a compliment for the questionnaire. Reliability of the research instrument was tested using the Cronbach Alpha method which revealed that the instrument is reliable. The result of Durbin Watson revealed that the data is free from autocorrelation. Data analysis was done using both descriptive and inferential analysis technique. Descriptive statistics was used to give insight on the respondents profile while inferential statistics was used in the conducting of hypotheses. The two research questions for the study were analyzed using multiple regression model. The study shows that the two null hypotheses were rejected while the two alternative hypotheses were accepted (organization’s internal control environment (p=0.000<0.05, ?=0.890) and risk assessment (p=0.000<0.05, ?=0.242); The study concluded that organization’s internal control environment and risk assessment, has a positive influence on organizational performance.
Downloads
References
Adebanjo, D.O., Francis, L., and Tritos, T.M. (2013). A case study of supplier selection in developing economies: A perspective on institutional theory and corporate social responsibility. Supply Chain Management: An International Journal. 18. 10.1108/SCM-08-2012-0272.
Albert, O. and Byaruhanga, J. (2014). Effects of internal control systems on financial performance of sugarcane out grower companies in Kenya. IOSR Journal of Business and Management, 16(12): 62–73. Retrieved from www.iosrjournals.org
Amudo, A., Inanga, E.L. (2009). Evaluation of internal control systems: A case study from Uganda. International Research Journal of Finance and Economics; 1(27): 124–144
Ayyash, M.Y. (2017). The impact of internal control requirements on profitability of Palestinian shareholding companies Palestinian Banking Sector. A thesis submitted in partial fulfillment of the requirements for the degree of Master of Accounting & Finance. The Islamic University–Gaza Research and Postgraduate Affairs Faculty of Commerce Master of Accounting & Finance.
Badara, S. M. and Saidin, Z. S., (2013). Impact of the effective internal control system on the internal audit effectiveness at local government level: Journal of Social and Development Sciences 4(1):16-23.
Bakare, T. (2015). "MTN Nigeria CEO resigns as FG slashes fine to N674b". Guardian
Bakare, Tonye (2015). MTN Nigeria CEO resigns as FG slashes fine to N674b. Guardian Newspaper.
Beeler, J. D., Hunton, J. E., & Wier, B. (1999). Promotion performance of internal auditors: A survival analysis. Internal Auditing. 14:3-14.
Bongani, N., (2013). Application of internal controls in NGOs: Evidence from Zimbabwe, Journal of Finance and Accounting, 1(2): 39-47
Bowen, F. E., Rostami, M., & Steel, P. (2010). Timing is everything: A meta-analysis of the relationships between organizational performance and innovation. Journal of business research, 63(11), 1179-1185. https://doi.org/10.1016/j.jbusres.2009.10.014
Cahill, E. (2006). Audit committee and internal audit effectiveness in a multinational bank: A case study. Journal of Banking Regulation 7(1/2):160 - 179.
Campbell, S., & Hartcher, J. (2009). Internal control for small business. Melbourne: CPA Austraila.
Chang, W., Park, J. E., & Chaiy, S. (2010). How does CRM technology transform into organizational performance? A mediating role of marketing capability. Journal of business research, 63(8), 849-855. https://doi.org/10.1016/j.jbusres.2009.07.003
Committee of Sponsoring Organisations (COSO) framework, (2013). Internal Control — Integrated Framework: Internal Control over Financial Reporting: A Compendium of Approaches and Examples (Exposure draft).
COSO (2012). Internal Control Integrated Framework. Durham: American Institute of Certified Public accountants.
Dineshkumar, S. and Kogulacumar, P. (2013). Internal Control System and its impact on the Performance of the Sri Lanka Telecom limited in Jaffna District. International Journal of Advanced Computer Technology, 2(6):56-64
Donaldson, L. (1990). A rational basis for criticism of organizational economics: A reply to Barney. Academy of Management Review, 15:394-401.
Elenkov, D. S. (2002). Effects of leadership on organizational performance in Russian companies. Journal of Business Research, 55(6), 467-480. https://doi.org/10.1016/S0148-2963(00)00174-0
Elikwu, M (2008). Research Project Mode Easy: A simplified approach to write and defend a good research report. Lagos: Cin-Eight Publishers.
Fadzil, F. H., Haron, H., & Jantan, M. (2005). Internal auditing practices and internal control system. Managerial Auditing Journal, 20(8):844-866.
Financial Nigeria (2017). Etisalat Nigeria rebrands to 9Mobile after UAE investors pull-out. Available on http://www.financialnigeria.com/etisalat-nigeria-rebrands-to-9mobile-after-uae-investors-pull-out-news-1382.html
Frazer, L. (2012). The effect of internal control on the operating activities of small restaurants. Journal of Business & Economic; 10(6): 361. https://doi.org/10.5539/ijef.v4n3p46
Gamage, C.T, Lock, K.L. and Fernando, A.A. (2014). A proposed reaserch framework: Effectiveness of internal control system in state commercial banks in Sri Lanka. International Journal of Scientific Research and Innovative Technology, 1(5): 25–44.
García-Morales, V. J., Jiménez-Barrionuevo, M. M., & Gutiérrez-Gutiérrez, L. (2012). Transformational leadership influence on organizational performance through organizational learning and innovation. Journal of business research, 65(7), 1040-1050. https://doi.org/10.1016/j.jbusres.2011.03.005
Gray, I., (2008). The Audit Process: Principles, Practice and Cases. PatrickBon
Hales. (2005). Accounting and financial analysis in the hospitality industry, New York: Heinemann Publications.
Harris, L. C., & Ogbonna, E. (2001). Strategic human resource management, market orientation, and organizational performance. Journal of business research, 51(2), 157-166. https://doi.org/10.1016/S0148-2963(99)00057-0
Hayali A, Dinc Y, Sar?l? S, Dizman AS, Gundogdu A.(2013). Importance of Internal Control System in Banking Sector : Evidence From Turkey. Turkey: Marmara University. Retrieved from https://www.researchgate.net/publication/258258914
Hayali, A., Dinc, Y., Sarili, S., Dizman, A.S. and Gundogdu, A. (2013). Importance of internal control system in banking sector : Evidence from Turkey. Turkey: Marmara University, 2013. Retrieved from https://www.researchgate.net/publication/258258914
Hooks, K., Kaplan, S., Schultz, J., and Ponemon, L. (1994). Enhancing communication to assist in fraud prevention and detection.
Jacob, E.O. and Philip, A.O. (2016).Journal of Business and Management,18(10):80-85.
James, U. M., Godwin, E.I., Ojo, V. O. (2014). INTERNAL CONTROLS AND OPERATING PERFORMANCE OF SMALL BUSINESSES IN LAGOS METROPOLIS. Accountability & Sustainable Business Development in Emerging Economies. July 9-11, 2014/O. A.U, Ile-Ife, Nigeria
Janvrin, D.J., Payne, E.A., Byrnes, P., Schneider, G.P. and Curtis, M.B. (2012). The updated coso internal control—integrated framework: Recommendations and opportunities for future research. Journal of Information Systems; 26(2): 189–213. https://doi.org/10.2308/isys-50255
Jensen, M. C. & Meckling,W. H. (1976). Theory of the firm: Managerial behaviour, agency costs, and ownership Structure’, Journal of Financial Economics.
Jussi, N and Petri, S. (2004). Does agency theory provide a general framework for audit pricing.? International Journal of Auditing, 8 (2):253-262.
Kansas State University, Internal Control Audit (n.d). Internal controls. Retrieved from https://www.k-state.edu/internalaudit/internal-controls/
Kinyua, J. K., Gakure, R., Gekara, M., & Orwa, G. (2015). Effect of Internal Control Environment on the Financial Performance of Companies Quoted in the Nairobi Securities Exchange.
Kinyua, J.K. (2016). Effect of internal control systems on financial performance of companies quoted in the Nairobi securities exchange. (Unpublished PhD thesis). Jomo Kenyatta University of Agriculture and Technology, Kenya.
Kirsch,L.J (2002). Developing Common System Globally: The Dynamics of Control Infrastructure, Information Systems Research Issue 15,154 -167.
Kohler, T. (2003). Corporate accelerators: Building bridges between corporations and startups. Business Horizons, 59(3):347-357
Kothari, C. (2004). Research methodology, methods and techniques. 2nd edition, new age international publishers, New Delphi:
Li, S., Ragu-Nathan, B., Ragu-Nathan, T. S., & Rao, S. S. (2006). The impact of supply chain management practices on competitive advantage and organizational performance. Omega, 34(2), 107-124. https://doi.org/10.1016/j.omega.2004.08.002
Lin, C., Chow, W. S., Madu, C. N., Kuei, C. H., & Yu, P. P. (2005). A structural equation model of supply chain quality management and organizational performance. International journal of production economics, 96(3), 355-365. https://doi.org/10.1016/j.ijpe.2004.05.009
Liu, Y., Combs, J. G., Ketchen Jr, D. J., & Ireland, R. D. (2007). The value of human resource management for organizational performance. Business horizons, 50(6), 503-511. https://doi.org/10.1016/j.bushor.2007.07.002
Mawanda, S. P., (2008). Effects of internal control systems on financial performance in an institution of higher learning in Uganda: A case of Uganda Marytrs University, retrieved at https://www.academia.edu/4812543/effects_of_internal_control_systems_on_financial_performance
Ming, Y. and Wang, C. L. (2009). Bing Internal controls, auditing and forensic audit opinion financial theory and practice, Chinese.
Mire, H. A. (2016). Effects of internal control system on the organizational performance of remittance companies in Mogadishu, Somalia. IJRD-Journal of Business Management.
Mirinaviciene. (2014). Internal control and fraud prevention, New York: Keuka College.
Monday, J.U., Inneh, G.E. and Ojo, V.O. (2014). Internal controls and operating performance of small businesses in Lagos metropolis. Accountability & sustainable business development in emerging economies. O. A.U, Ile-Ife, Nigeria.
Muhunyo, B. M. and Jagongo, A. O. (2018). Effect of internal control systems on financial performance of public institutions of higher learning in Nairobi City County, Kenya. International Academic Journal of Human Resource and Business Administration, 3(2):273-287
Ndungu, H. (2013). The effect of internal controls on revenue generation: A case study of the University of Nairobi Enterprise and services limited.
Newspaper.
Njeri, M.M. (2017). Effects of internal controls on the performance of multinational financial services companies in Kenya. A research project submitted in partial fulfilment of the award of the degree of masters of business administration of the University of Nairobi school of business.
Norton, R.F. (2016). COSO’s new fraud risk management guidelines: What companies need to know.
Ntongo, V., (2012). Internal controls, financial accountability and service delivery in private health providers of Kampala district.
Ofori, W. (2011). Effectiveness of internal controls: a perception or reality? The Evidence of Ghana post company limited in Ashanti Region. Kwame Nkrumah University of science and technology
Olannye, A. P. (2006). Research methods for business: A skill building approach. Asaba: Pee Jen Publications.
Oppong,M., Owiredu, A., Abedana, V.N. and Asante, E. (2016). The Impact of Internal Control on the Performance of Faith-Based NGOs in Accra. Research Journal of Finance and Accounting, 7(12):110-125
Peters. (1994). In Search of Excellence, New York: Harper and Row.
Ponte. (2009).Disclosure of social information by Brazilian companies according to United Nations indicators of corporate social responsibility, New York: UN.
ProQuest (2013). M-Cell is Now MTN Group Limited. PR Newswire: 1. 11 October 2002. Web.11.
Punch (2018). MTN pays N165bn of the N330bn fine, NCC says. Available on https://punchng.com/mtn-pays-n165bn-of-the-n330bn-fine-ncc-says/
Saeidi, P. (2015), Investigating the Relation Between Internal Control System and Financial Performance of Telecommunication Company of Golestan Province, Multidisciplinary International Peer Reviewed Journal, 3(2):206-211, available at http://saussurea.org/
Saeidi, P., Shokoohi, M, Malekmahmoudi, S. K. (2015). Investigating the relation between internal control system and financial performance of telecommunication company of Golestan province, Multidisciplinary International Peer Reviewed Journal, 3(2):206-211, available at http://saussurea.org/
Short, J. C., & Palmer, T. B. (2003). Organizational performance referents: An empirical examination of their content and influences. Organizational Behavior and Human Decision Processes, 90(2), 209-224. https://doi.org/10.1016/S0749-5978(02)00530-7
Singleton, T. W, Bologna, G. J, Lindquist, R. J., & Singleton, A. J. (2006). Fraud auditing and forensic accounting (Third Edition). New Jersey: John Wiley & Sons, Inc.
Tabachnick, B.G. and Fidell, L.S. (2012). Using Multivariate Statistics. 6h Edition, Person Education, Boston.
Taiwo, I. (2015). From Econet to Airtel: How many times has the telco changed hands? Available on https://techcabal.com/2015/10/06/from-econet-to-airtel-how-many-times-has-the-telco-changed-hands/
Theofanis, K., Drogalas, G and Giovanis, N. (2011). Evaluation of the effectiveness of internal audit in Greek hotel Business: International Journal of Economic Sciences and Applied Research, 4(1):19-34
Thuneibat, A. A., Rehaily, A. S., & Basodan, Y. A. (2015). The impact of internal control requirements on profitability of Saudi shareholding companies. International Journal of Commerce and Management, 25(2): 196-217.
Transparency International (2006). Corruption Perceptions Index. Retrieved from:.http://www.transparency.org/policyresearch/surveys. indices/cpi/2006
Umar, H. and Dikko, M.U. (2018). The effect of internal control on performance of commercial banks in Nigeria. International Journal of Management Research & Review, 8(6):13-23.
Published
How to Cite
Issue
Section
Copyright (c) 2021 International journal of social sciences
![Creative Commons License](http://i.creativecommons.org/l/by-nc-nd/4.0/88x31.png)
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Articles published in the International Journal of Social Sciences (IJSS) are available under Creative Commons Attribution Non-Commercial No Derivatives Licence (CC BY-NC-ND 4.0). Authors retain copyright in their work and grant IJSS right of first publication under CC BY-NC-ND 4.0. Users have the right to read, download, copy, distribute, print, search, or link to the full texts of articles in this journal, and to use them for any other lawful purpose.
Articles published in IJSS can be copied, communicated and shared in their published form for non-commercial purposes provided full attribution is given to the author and the journal. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.