The role of rule-following and accountability leadership and management support in internal control effectiveness moderated by organizational culture

Abstract

Purpose

The current study intends to explore the internal control effectiveness through leadership who follow rules and emphasize accountability with support from management. It also examines the influence of organizational culture. Current research aims to enhance the internal control effectiveness in organizations by examining leadership roles, support from management and organizational culture specifically in the segment of accounting and finance.

Design/methodology/approach

The study surveys professionals from the accounting and finance segment to accumulate insights into the influence of leadership, management support and organizational culture on internal control effectiveness. Statistical tools were applied by using the AMOS and SPSS program to draw practical recommendations for the optimization of internal control mechanisms.

Findings

The findings direct that internal control effectiveness is positively linked to rule-following and accountability leadership while presenting a negative association with top management support. Prominently, organizational culture demonstrates a central moderating role, highlighting its significant influence on internal control effectiveness.

Practical implications

The study provides real-world insights to aid accounting and finance professionals in implementing effective internal controls. The findings provide actionable recommendations for top management to improve organizational practices and financial processes.

Originality/value

The unique combination of exploring leadership impact, top management support and organizational culture adds value to existing knowledge. The findings provide a novel perspective for practitioners and researchers seeking to enhance internal control mechanisms in organizational settings.

Citation

Qaiser, A. and Hassan, S. (2024), "The role of rule-following and accountability leadership and management support in internal control effectiveness moderated by organizational culture", Journal of Organizational Effectiveness: People and Performance, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JOEPP-03-2024-0111