EFFECT OF RESULTS AND ADMINISTRATIVE CONTROLS ON PERFORMANCE OF MANUFACTURING SMALL AND MEDIUM ENTERPRISES (SME’s) IN LAGOS STATE, NIGERIA
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Date
2025
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Journal of Management and Accounting
Abstract
Effective management control is essential to align employee goals with
organizational objectives and ensure long-term survival. However,
frequent failures due to poor control practices have raised concerns
across sectors. This study examines how results and administrative
controls influence the performance of manufacturing SMEs in Lagos,
Nigeria. Using a cross-sectional design, data were collected from 848
randomly selected managers through structured questionnaires and
analyzed using Partial Least Squares Structural Equation Modeling
(PLS-SEM). Findings reveal that diagnostic and interactive uses of
results control positively affect organizational performance (β=0.372,
p<0.05; β=0.317, p<0.05). Administrative and social controls also have
significant positive effects (β=0.214, p<0.05), while the combined use
of results and administrative controls shows no significant impact. The
study confirms the importance of employing both accounting-based and
non-accounting-based controls to enhance alignment and performance.
SMEs are encouraged to integrate diagnostic and interactive controls,
variance analysis, and social mechanisms to monitor subordinates
effectively with minimal supervision costs.