Volume 13, Issue 2 (February 2026), Pages: 220-228

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 Original Research Paper

Impact of culture types on internal control systems in Vietnamese manufacturing firms

 Author(s): 

Lan Thi Phuong Nguyen, Van Thanh Pham *, Nam Hoai Tran

 Affiliation(s):

Department of Business Administration, National Economics University, Hanoi, Vietnam

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 * Corresponding Author. 

   Corresponding author's ORCID profile:  https://orcid.org/0000-0001-7494-4205

 Digital Object Identifier (DOI)

  https://doi.org/10.21833/ijaas.2026.02.023

 Abstract

In a rapidly changing business environment, organizational culture plays an important role in shaping internal control systems. However, prior studies mainly focus on the general relationship between organizational culture and control systems, with limited attention to how different culture types influence internal control effectiveness. This study examines whether the four organizational culture types identified by the Competing Values Framework, namely clan, adhocracy, hierarchy, and market, have different effects on firms’ internal control effectiveness (ICE), and whether the internal control system (ICS) mediates this relationship in manufacturing firms in a developing economy such as Vietnam. Data were collected from 235 manufacturing companies in Vietnam and analyzed using structural equation modeling (SEM). The results show that all four culture types have a positive effect on internal control effectiveness, and that the internal control system significantly mediates the relationship between organizational culture and ICE. This study contributes to the literature on organizational culture and internal control in developing-economy manufacturing contexts and provides practical implications for managers and policymakers by highlighting the importance of fostering supportive organizational cultures and strengthening organizational capabilities to enhance the competitiveness of small and medium-sized enterprises (SMEs).

 © 2026 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords

Organizational culture, Internal control effectiveness, Internal control system, Manufacturing firms, Developing economy

 Article history

Received 28 July 2025, Received in revised form 11 January 2026, Accepted 20 February 2026

 Acknowledgment

This work was supported by the Vietnamese Ministry of Education and Training under Grant Project code: B2023.KHA.02. 

 Compliance with ethical standards

 Ethical considerations:

All participants provided informed consent before participating in the study, and their responses were collected anonymously to ensure confidentiality. All participation was voluntary, and no foreseeable risks were posed to respondents. 

 Citation:

Nguyen LTP, Pham VT, and Tran NH (2026). Impact of culture types on internal control systems in Vietnamese manufacturing firms. International Journal of Advanced and Applied Sciences, 13(2): 220-228

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