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Related Experiment Video

Updated: May 28, 2025

Applying an eMASS Customization Program as a Research Tool to Evaluate Consumer Benefits
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Corporate internal control, capacity utilization and total factor productivity.

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  • 1Systems and Industrial Engineering Technology Research Center, Zhongyuan University of Technology, Zhengzhou, Henan, China.

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Summary
This summary is machine-generated.

Effective internal control (IC) boosts corporate capacity utilization and total factor productivity. Sufficient capacity utilization acts as a key mediator, enhancing the positive impact of IC on productivity, especially in uncertain environments.

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Area of Science:

  • Business and Management
  • Economics
  • Organizational Behavior

Background:

  • Internal Control (IC) and Principal-agent theories provide the framework.
  • Understanding the interplay between IC, capacity utilization, and total factor productivity is crucial for business performance.
  • Existing literature may not fully elucidate the mediating role of capacity utilization.

Purpose of the Study:

  • To investigate the direct and indirect impacts of effective internal control on capacity utilization and total factor productivity.
  • To examine the mediating effect of capacity utilization in the relationship between internal control and total factor productivity.
  • To analyze how environmental uncertainty moderates these relationships.

Main Methods:

  • Theoretical framework based on Internal Control theory and Principal-agent theory.
  • Empirical analysis exploring the relationships between IC, capacity utilization, and total factor productivity.
  • Heterogeneity analysis to assess the impact of environmental uncertainty.

Main Results:

  • Effective internal control significantly enhances both capacity utilization and total factor productivity.
  • Capacity utilization demonstrates a significant mediating effect between internal control and total factor productivity.
  • The positive effects of IC and the mediating role of capacity utilization are amplified under higher environmental uncertainty.

Conclusions:

  • Strengthening internal control is vital for improving operational efficiency and productivity.
  • Enterprises should focus on optimizing capacity utilization as a mechanism to leverage internal control benefits.
  • Regulatory guidance encouraging robust IC construction can lead to enhanced corporate competitiveness.