Influencing Corporate Culture On Internal Control In Commercial Firms




internal control, corporate culture, influence, commercial firms, auditing


Objective: Corporate culture is the perception, behavior, communication style, and qualities that are unique to a firm. One of the core factors that makes a firm successful is its corporate culture. The article aims to determine the corporate culture factors and their influence on internal control in commercial firms in Hanoi.


Method: The major method of study used by the author is a combination of quantitative and qualitative methodologies. Scale adjustments are made via qualitative research. The model is examined, measured, and tested using quantitative research. We use primary data from a survey of commercial enterprises in Vietnam. The research sample is 225 and is analyzed using regression models.


Results: Research results have determined that corporate culture factors, including collaborative culture, hierarchical culture, and competitive culture (sig. = 0.000 < 0.05), affect positive internal control in commercial enterprises in Hanoi.


Conclusions: The article is based on the empirical data collected from various types of participants, including accountants (for information provision), managers (for decision-making), sales staff (for work), and lecturers (for research) in Vietnam. By drawing the concept from previous research, the study explores corporate culture as an internal control determinant. The study contributed to a theoretical enhancement of the current level of knowledge on the factors that affect internal control and developed a reliable scale for measuring the corporate culture and internal control of commercial firms in Hanoi, Vietnam. Besides, our study emphasizes that the corporate culture in commercial enterprises in Hanoi needs improvement to support internal control. Policymakers are required to make strategic efforts for internal control system reform in firms to increase the likelihood of business performance. The value of the study is that it provides an expansion of the corporate culture factors that influence internal control in commercial firms in Hanoi, thereby proposing governance implications for the business leaders of these firms to improve internal control. Besides, research results provide useful references for research on related issues.


Al-Sada, M., Al-Esmael, B., & Faisal, M. N. (2017). Influence of

organizational culture and leadership style on employee satisfaction,

commitment and motivation in the educational sector in Qatar. EuroMed

Journal of Business, 12(2), 163–188.

Alvesson, M. & Sveningsson, S. (2008), Changing Organizational Culture: culture chang work in progress, Routledge, USA.

Batool, S. (2011). Analyze the Factors that have an Influence on the Management Control System. Research Journal of Finance and Accounting, 2(3), 48-56.

Bernard, C. I., (1938). Functions of the Executive. Harvard University Press. Cambridge.

Brim, O. G., Jr. (1968). Adult socialization. In J. A. Clausen (Ed.),

Socialization and society, (184–226). Boston: Little, Brown.

Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework (3rd ed.). San Francisco: Jossey-Bass.

Chenhall, R. H (2003). Management control systems design within its organizational context: Findings from contingency – based research and directions for the future. Accounting Organizations and Society, 28, 127-168.

COSO (1992). Committee of sponsoring organization of treadway commission, Internal controlintegrated framework, New York: AICPA.

COSO (2013), 2013 Internal Control – Integrated Framework, retrieved on April 20th, 2021, from <https://www.coso. org/Pages/default.aspx>.

Costanza, D. P., Blacksmith, N., Coats, M.R., Severt, J. B., & DeCostanza, A. H.

(2015). The effect of adaptive organizational culture on long-term survival.

Journal of Business and Psychology, 31(3), 361-381.

Creswell, J. W. (2003). Research design: Qualitative, Quantitative and Mixed Methods Approaches. 2nd Ed, Thousand Oaks, Sage publications

Diamantidis, A. D., & Chatzoglou, P. (2019). Factors affecting employee

performance: an empirical approach. International Journal of Productivity and

Performance Management, 68(1), 171-193

Do, V. P. A. (2022). Factors affecting firms’ internal control in Vietnam. Journal of Economics and Development, 305, 2-9.

Fauzi, H., Hussain, M. M., & Mahoney, L. S. (2011). Management Control Systems and Contextual Variables in the Hospitality Industry. Asia – Pacific Management Accounting Journal, 6, 21-28.

Gladilina, I., Volkova, N., Sergeeva, S., Bulochnikova, N., Tokareva, E., & Bekmurzaeva, R. (2023). Features of Implementation of Lean Production Principles and Flow, Synchronization, and Leveling Methods in the Context of Russian Organizational Culture. Journal of Law and Sustainable Development, 11(3), 01-14. DOI:

Hair J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (2006), Multivariate data analysis, PrenticeHall, International, Inc.

Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (2010). Multivariate Data Analysis. Prentice-Hall International.

Hoang, N. Q. (2022). The impact of internal control on performance of Vietnamese road transportation firms. Doctoral Dissertation, National Economic University, Hanoi.

Hoang, T., & Chu, N. M. N. (2008). Analysis of research data with

SPSS. Hanoi, Vietnam: Hong Duc Publishing House.

Jokipii, A. (2010). Determinants and consequences of internal control in firms: a contingency theory based analysis. Journal of Management & Governance, 14(2), 115-144.

Kreitner, R., & Kinicki, A. (1998). Organizational Behavior, Irwin Mc Graw – Hill publisher.

Le, Q. H., Do, V. P. A., Nguyen, H. N., & Nguyen, H. T. (2022). The role of internal control in innovation activities of small and medium-sized private enterprises in Vietnam. Journal of Economics and Development, 297, 22-30.

Lund, D. B. (2003). Organizational culture and Job satisfaction. Journal of Business & Industrial Marketing, 18(3), 219–236.

Muhtar, M., Winarna, J., & Sutaryo, S. (2023). Internal control weakness and corruption: empirical evidence from Indonesian local governments. Intern. Journal of Profess. Bus. Review, 8(6). 01-21. Doi:

National Assembly (2015). Law No. 88/2015/QH13 of the National Assembly: Law on Accounting, released on November 20, 2015

Naqshbandi, M. M., Kaur, S., & Ma, P. (2015). What organizational culture

types enable and retard open innovation? Quality and Quantity, 49(5), 2123-

Nga, L. P., & Tam, P. T. (2023). Impact Digital Banking Development on theBusiness Efficiency: A Case Study of Commercial Banks in Vietnam. Journal of Law and Sustainable Development, 11(9), 01-19. DOI:

Nguyen, N. H., & Pham, T. B. N. (2018). The Effect of Organizational Culture on Work Engagement of Employees in Information Technology Companies at Hanoi. Journal of Economics and Development, 252, 79-89.

Nguyen, T. K. A. (2019). The influence of internal control on business performance and regulatory compliance in enterprises of Vietnam Forestry Corporation. Doctoral Dissertation, National Economic University, Hanoi.

Nguyen, T. N. L., Vu, T. K. A., & Bui, T. N. (2023). mpact of Internal Control on the Quality of Accounting Information at Enterprises Listed on the Stock Market in Vietnam. Intern. Journal of Profess. Bus. Review, 8(5). 01-33. Doi:

Nguyen, T. Q., Nguyen, X. H., & Tran, M. D. (2021). The impact of internal control on financial performance of listed firms on Vietnam Stock Exchange. Journal of Economics and Development, 292(2), 46-55.

Nguyen, V. H. (2023). Evaluation of Internal control in Aquaculture firms in Vietnam. International Journal of Advanced Multidisciplinary Research and Studies, 3(2), 170-175.

O'Reilly, C. A., & Chatman, J. A. (1996). Culture as Social Control:

Corporation, cults, and commitment. In B. M. Staw & L. L. Cummings (Eds.),

Research in Organizational Behavior (18, 157-200). Greenwich CT: JAI Press.

Pham, T. T. (2019). The influence of internal control on the reliability of financial information in small and medium enterprises. Industry and Trade magazine, 231, 24 -34.

Robbins, S. P. & Judge, T. A. (2005), Organizational Behavior, 15th Edition, Prentice Hall, USA

Rönkkö, J., Paananen, M., & Vakkuri, J. (2018). Exploring the determinants of internal audit: Evidence from ownership structure. International Journal of Auditing, 22(1), 25-39.

Saks, A. M. (2019). Antecedents and consequences of employee engagement

revisited, Journal of Organizational Effectiveness: People and Performance,

(1), 19-38

Selznick, P., (1957): Leadership in Administration: A Sociological Interpretation, 1984 edition. University of California Press. Los Angeles.

Tien, D. N., & Thanh, H. H. (2023). The Impacts of Internal Audit Practices on the Quality of Internal Control in Vietnamese SMEs. Intern. Journal of Profess. Bus. Review, 8(5). 01-12. Doi:

Tran, T. T., & Tran, T. S. L. (2021). The Impact of firm size on internal control in Vietnamese Textile and Garment firms. Journal of Economics and Development, 291, 97-86.

VCCI. (2019). Applying internal control mechanisms and codes of conduct in Vietnamese enterprises, Chamber of Commerce and Industry, British Government, Hanoi, Vietnam.

Vu, T. K. D., Le, T. A., and Tran, Q. H. (2023). Influencing a Firm's External Environment on Internal Control in Commercial Firms in Hanoi. International Journal of Advanced Multidisciplinary Research and Studies, 3(30, 436-440.




How to Cite

Nguyen, T. H., Tran, T. N., Do, M. T., Truong, D. D., & Do, D. T. (2023). Influencing Corporate Culture On Internal Control In Commercial Firms. Journal of Law and Sustainable Development, 11(11), e1508.