The intermediate effect of organizational culture on the effect of the internal control system on organizational performance: An empirical study

The internal control system, which consists of the rules and regulations necessary for an effective management, serves as an important self-control in organizations in terms of risk management and performance success. However, the system is operated by people and depending on the actions of people, it is possible for the system to be affected positively or negatively. From this point of view, this study aimed to investigate the mediating effect of organizational culture on the effect of the internal control system on organizational performance and the effectiveness of the system from a managerial point of view was discussed. Organizational culture, which represents the common understanding among organizational members about how to do things, supports the control environment by determining behavioral standards and interacts with other components of the system. In this context, the concepts of internal control, organizational culture and organizational performance, which are the subject of the research, were examined through the literature, and in the application part, a survey was conducted for the employees of insurance and private pension companies in Turkey, and statistical analysis was made using the structural equation model on 819 valid survey data. As a result of the research; The effect of internal control on organizational culture and organizational performance and the effect of organizational culture on organizational performance were found to be statistically significant. In the relationship between internal control dimensions and organizational performance, it was determined that the highest relationship was with the information-communication sub-dimension, and the highest relationship in terms of organizational culture was between the control environment and clan culture. It has been determined that organizational culture has a partial mediating effect on the effect of internal control on organizational performance.