Internal Control Systems and Organizational Effectiveness: Digital Transformation in Indonesian SOEs

Yuliana Sianipar, Hanny Mekel Runtuwene, Felix Ariodamar, Evelyn Hendriana

Abstract


This study examines the effect of internal control systems on organizational effectiveness in Indonesian state-owned enterprises (SOEs) and the role of digital transformation as a moderating variable. This cross-sectional research with quantitative methods collected data through questionnaires from managers in 247 SOE companies, with 162 valid samples analyzed using PLS-SEM. The results show that digital transformation, control environment, and monitoring control have a positive effect on organizational effectiveness. Meanwhile, control activities, risk assessment, and information and communication have no significant effect. Digital transformation proved to have the most influence on organizational effectiveness, but did not moderate the relationship between internal control systems and organizational effectiveness. These findings suggest that digital transformation functions as an independent predictor, not as a moderating variable in the context of Indonesian SOEs.

Keywords


Digital Transformation; Internal Control System; Organizational Effectiveness; State-Owned Enterprises

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DOI: https://doi.org/10.17509/jrak.v14i2.97247

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