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Advances in Social Sciences Research Journal – Vol. 10, No. 3

Publication Date: March 25, 2023

DOI:10.14738/assrj.103.14313.

Abdulhadi, A. R., Ariffin, K. A., Leman, Z. B., Ahmad, S. A, Al-Zubaidi, R., & Abdulsamad, A. (2023). The Impact of Internal Control

on Project Management in Construction Site Among Small and Medium Enterprises in Iraq. Advances in Social Sciences Research

Journal, 10(3). 247-268.

Services for Science and Education – United Kingdom

The Impact of Internal Control on ProjectManagement in

Construction Site Among Small and Medium Enterprises in Iraq

Ali Raqee Abdulhadi

Faculty of Engineering UPM, Malaysia

Khairol Anuar Bin Ariffin

Faculty of Engineering UPM, Malaysia

Zulkiflle B. Leman

Engineering Faculty, UPM, Malaysia

https://orcid.org/0000-0002-3273-6675

Siti Azfanizam binti Ahmad

Engineering Faculty, UPM, Malaysia

https://orcid.org/0000-0003-2183-2693

Razi Al-Zubaidi

Faculty of Engineering UPM, Malaysia

Akram Abdulsamad

Faculty of Economics and Political of scienceUniversity of Aden, Yemen

Abstract

The present study investigates the relationship between internal control

and project management among Iraq construction SMEs. The current

research is focused on internal control as multi-dimensional by using its four

main components, which are control environment, control activities, self- assessment, and information & communication, while project management

was taken as unidimensional. Data were gathered from the employees who

are working in construction SMEs in Iraq, either consultants, developers, or

contractors. 251 questionnaires were received and analyzed by using SPSS

and smart PLS-SEM to measure the research model fit and examine the

hypothesis, whether accepted or not within the study context. The model

measurement and structural equation model test indicated that all four main

hypotheses were accepted, which means that internal control has a positive

impact on the four main components of project management in SMEs in the

construction sectors in Iraq. Also, the theoretical and managerial

implications of this research were then discussed at the end of this article.

Keywords: internal control, project management, construction SMEs, Iraq, control

environment, control activities, self-assessment, information & communication.

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Advances in Social Sciences Research Journal (ASSRJ) Vol. 10, Issue 3, March-2023

Services for Science and Education – United Kingdom

INTRODUCTION

The construction industry is essential to the growth of every nation, and Iraq is no different.

According to the World Bank [1], the building industry in Iraq has experienced various

challenges due to the country's low economic position, corruption, and low individual income.

In addition, the country's continuing civil war and other conflicts have worsened the difficulties

encountered by the construction industry [2]. Therefore, efficient project management is

essential for the successful completion of construction projects in Iraq.

There are several projects underway around us in our day-to-day lives, and these go hand in

hand with the progress that the project management field has undergone. There is an intense

desire in society and the community to bring about successful projects steering clear of failure

[3]. Therefore, project managers face the pressure of mitigating such failure. According to the

[4], successful projects are gauged based on time, quality, scope, and customer satisfaction.

It is clear that project management is a field of study that has garnered significant attention

from researchers due to its importance in a wide range of industries and contexts. project

management is widely recognized as an important factor in achieving project success [5].

Project management is the process of planning, coordinating, and controlling resources to

achieve particular objectives and goals. It entails the proper management of several aspects,

including scope, time, cost, quality, and stakeholder expectations [4].

Project management is extremely crucial in the construction business since it ensures that

projects are finished on schedule, within budget, and to the appropriate quality standards [6].

By using project management techniques and tools, organizations can improve the efficiency

and effectiveness of their projects and increase the likelihood of achieving their project

objectives [7]. Project management is crucial for the development of organizational strategies

and the application of a benefits management process on the pre-identified critical success

factors promoted better project management practices and ensured an effective impact on a

project success [8].

In recent years, most organizations have focused on internal control to avoid or minimize the

risk that firms face, thus control in business failure. Internal control indicates the systematic

and practical method that attempts to holistically understand, measure, evaluate and manage

entire risks faced by the company [9]. Though the topic of internal control is an important issue

among higher-level corporate executives, due to the conceptual complexity of internal control,

the area has not been explored enough. There are very few empirical studies that have studied

the relationship between company performance and total internal control, mostly depending

on companies listed on very advanced and highly developed stock markets [10].

Internal control is a crucial part of successful projects in the construction sector. Internal

control, on the other hand, refers to the policies and processes a company implements to

maintain the integrity and dependability of financial and operational information, protect

assets, and encourage compliance with laws [11]. Essential to the proper management of any

project, it involves a variety of procedures such as separation of roles, documentation, and

management review [12]. In the context of construction projects, internal control is crucial to