Impact of integrated audit management effectiveness on business sustainability in manufacturing firms

Abstract

Purpose

This study aims to investigate the effectiveness of integrated audit management and its impact on business sustainability for an emerging economy.

Design/methodology/approach

Drawing on the dynamic capability and contingency theory, the authors investigated the factors on integrated audit management implementation using a sample of 104 certified Malaysian manufacturing firms. The collected data has been analysed using the partial least squares through the structural equation modelling technique.

Findings

The findings have revealed that human resource capability, technological capability and quality capability have a robust influence on the importance of the internal audit process, which, in turn, leads to integrated audit management effectiveness towards the outcome of business sustainability. The results have also indicated the mediating effect of the internal audit process on the research model.

Originality/value

The contribution from the empirical findings will provide productive insights to help manufacturing firms devise an effective integrated internal audit management system to ensure business sustainability and increase competitiveness advantages for an emerging economy.

Citation

Hassan, N.A., Zailani, S. and Rahman, M.K. (2021), "Impact of integrated audit management effectiveness on business sustainability in manufacturing firms", Management Research Review, Vol. 44 No. 12, pp. 1599-1622. https://doi.org/10.1108/MRR-10-2020-0658