MJAMR

Internal Controls And Organizational Performance In Uganda, A Case Study Of BIDCO Company Ltd, Jinja City

Ainembabazi Viola Bridget, Mutesi Catherine


Abstract

This study aimed to conduct an in-depth examination of the relationship between internal controls and organisational performance within the Ugandan context through an exploratory case study of BIDCO Company Ltd in Jinja City. Internal controls, defined as mechanisms implemented by an organisation to safeguard assets, ensure reliable financial reporting, promote operational efficiency and compliance, have been progressively emphasized worldwide amid digital transformation and changing risk landscapes. However, empirical investigation of their precise impacts on key performance metrics is still nascent locally. A mixed qualitative-quantitative methodology was adopted to holistically ascertain the nature and strength of any associations. Primary financial statement data from 2015 to 2020 on profitability, growth, productivity and risk metrics were quantitatively analyzed using correlation tests. Additionally, semi-structured interviews with senior managers and a survey of non-managerial employees were conducted to qualitatively explore underlying risk management practices and control procedures in place and their perceived effects. The quantitative results indicated multiple strong positive correlations between internal control ratings across people, processes, and technology factors and various performance indicators over the period, suggesting tighter controls augment operational results. Qualitatively, key informants highlighted stringent supervision, adequate reporting systems and employee training as crucial levers bolstering achievements. The study indicated that the relation between control environment and performance (r = .401; pvalue <.05) was moderate and significant. This implied that a variation in control environment in BIDCO is associated with a moderate variation in performance. In real practice, the results suggested the more the company streams her control environment such as managing her revenues, operational costs, and fees on income, the higher the chances of performing financially. The pvalue, which was less than 0.05 suggested that control environment and performance are linearly related. The study indicated that the relation between control activities and performance (r = .563; pvalue <.05) was moderate. The research therefore recommends need for training staff on proper billing to ensure the company does not lose on the services dully provided. Where possible, the company should consider procuring a billing system to improve billing services.

Keywords

Organisational Performance internal control system control activities and communication
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Ainembabazi Viola Bridget & Mutesi Catherine (2024). Internal Controls And Organizational Performance In Uganda, A Case Study Of BIDCO Company Ltd, Jinja City. Metropolitan Journal of Academic Multidisciplinary Research, 3(5). https://journals.miu.ac.ug/pages/article.php?article_id=1415

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