Internal control effectiveness, supply chain management efficiency and capital allocation efficiency: evidence from the COVID-19 pandemic

Arash Arianpoor, Milad Valirouh, Cumhur Sahin
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Abstract

Purpose

The present study aims to investigate the impact of internal control effectiveness on supply chain management efficiency (SCME) and capital allocation efficiency for companies listed in the Tehran Stock Exchange (TSE). In addition, it investigates the mediating role of supply chain management efficiency in the relationship between internal controls and capital allocation efficiency.

Design/methodology/approach

The data about 191 companies in 2014–2022 were examined. The sales per inventory ratio was used to calculate SCME. The present study also applied the Generalized Method of Moments (GMM) for endogeneity concerns.

Findings

The results showed that internal control effectiveness has a significant positive effect on SCME. Moreover, internal control effectiveness and SCME significantly positively affect capital allocation efficiency. SCME has a mediating role in the relationship between internal control effectiveness and capital allocation efficiency. These findings remained robust even after several robustness tests. In addition, this study tested the results' robustness by dividing data into the pre-COVID-19 and post-COVID-19 years. The previous results were also confirmed according to the robustness test of COVID-19.

Originality/value

Challenges in the supply chain often hinder capital allocation efficiency. In addition, enterprises should try to establish strong internal controls to ensure SCME. Therefore, the relationship between internal control effectiveness, SCME and capital allocation efficiency is complex and underscores the importance of robust internal controls in optimizing resource allocation within organizations. Interestingly, this topic has not been extensively researched in accounting and business research, and there is a lack of empirical evidence on these effects. Consequently, this study aims to fill the gap and identify potential opportunities for new research directions.

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内部控制有效性、供应链管理效率和资本配置效率:来自 COVID-19 大流行病的证据
目的本研究旨在探讨德黑兰证券交易所(TSE)上市公司内部控制有效性对供应链管理效率(SCME)和资本配置效率的影响。此外,本研究还探讨了供应链管理效率在内部控制与资本配置效率之间的中介作用。采用销售/库存比来计算供应链管理效率。研究结果表明,内部控制有效性对 SCME 有显著的正向影响。此外,内部控制有效性和 SCME 对资本配置效率有显著的正向影响。在内部控制有效性与资本配置效率之间,SCME 起着中介作用。即使经过多次稳健性检验,这些结论仍然是稳健的。此外,本研究还将数据分为 COVID-19 前和 COVID-19 后两个年份,以检验结果的稳健性。根据 COVID-19 的稳健性检验,之前的结果也得到了证实。原创性/价值供应链中的挑战往往会阻碍资本配置效率。此外,企业应努力建立强有力的内部控制,以确保 SCME。因此,内部控制有效性、SCME 和资本配置效率之间的关系十分复杂,凸显了健全的内部控制对优化组织内部资源配置的重要性。有趣的是,会计和商业研究领域尚未对这一主题进行广泛研究,也缺乏有关这些影响的实证证据。因此,本研究旨在填补这一空白,并确定新研究方向的潜在机会。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
7.90
自引率
9.70%
发文量
87
期刊介绍: ■Organisational design and methods ■Performance management ■Performance measurement tools and techniques ■Process analysis, engineering and re-engineering ■Quality and business excellence management Articles can address these topics theoretically or empirically through either a descriptive or critical approach. The co-Editors support articles that significantly bring new knowledge to the area both for academics and practitioners. The material for publication in IJPPM should be written in a manner which makes it accessible to its entire wide-ranging readership. Submissions of highly technical or mathematically-oriented papers are discouraged.
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