THE IMPACT OF INTERNAL CONTROL ON THE OPERATIONAL PERFORMANCE OF MANUFACTURING FIRMS: A CASE OF KILOMBERO SUGAR COMPANY

Business Management

The research investigated how internal control influences the performance of manufacturing companies. The study had five specific goals: first, to evaluate how the control environment affects manufacturing firms' performance; second, to assess the impact of risk assessment on their performance; third, to examine how control activities influence their performance; fourth, to gauge the impact of Information and Communication on their performance; and fifth, to analyze how monitoring activities impact their performance. The research followed a descriptive research design that employed a quantitative approach. The participants were employees of Kilombero Sugar Company, with a sample of 78 employees chosen using convenience sampling. Data was collected through a questionnaire. The collected data underwent analysis using descriptive statistics and multiple regression analysis. The results of the multiple regression analysis indicated a significant and positive relationship between all five independent variables and the operational performance of the company. The findings revealed that Control Environment, Risk Assessment, Control Activities, Information and Communication, as well as Monitoring Activities, all had positive and significant effects on Operational Performance. For instance, Control Environment (B=0.383, p-value=0.000), Risk Assessment (B=0.481, p-value=0.000), Control Activities (B=0.553, p-value=0.000), Information and Communication (B=0.170, p-value=0.002), and Monitoring Activities (B=0.453, p-value=0.000) were all positively correlated with Operational Performance. In light of these results, the study suggests that companies should focus on strengthening their internal control mechanisms to enhance overall performance

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