The Impact of Organizational Culture on the Performance of Internal Auditing in Family-Owned Businesses: A Field Study on a Sample of Family Companies in Sudan

Abstract

This study aimed at exploring the impact of organizational culture—represented by its dimensions (work values, leadership style, organizational communication, and organizational commitment)—on the performance of internal auditing in family-owned businesses. The research employed a descriptive-analytical approach, utilizing a questionnaire as the primary tool for data collection. The sample consisted of 122 participants, including internal auditors and managerial leaders working in family businesses across Sudan.The findings revealed a statistically significant impact of the dimensions of organizational culture on the performance of internal auditing in family businesses in Sudan, with an overall effect rate of 96.7%. This underscores the critical role organizational culture plays in enhancing the quality of internal auditing. Notably, the study indicated that the pattern of organizational communication has a negative and statistically significant effect on the performance of internal auditing, with an impact coefficient of 35.5%. This suggests that communication channels within these companies face challenges that hinder improvements in internal audit performance. The study recommends the enhancement of organizational communication methods to ensure greater clarity, interactivity, and bidirectional exchange, thereby mitigating the negative effects on internal audit performance. Furthermore, it emphasizes the importance of strengthening organizational culture dimensions through developmental training programs, given their direct impact on improving internal audit performance in Sudanese family-owned businesses.