Misapplication of Financial Resources and Organizational Performance: The Moderating Role of Institutional Enforcement

Abstract

This study examines the moderating role of institutional enforcement on the relationship between misapplication of financial resources and organizational performance. An explanatory research design was adopted. The study used quantitative approach and relied on a single cross-sectional survey. A purposive sampling technique was employed to obtain a sample size of 240. The findings of the study indicate that misapplication of financial resources has no statistically significant influence on organizational performance. There is a strong positive and statistically significant influence of institutional enforcement on organizational performance. Institutional enforcement has a significant moderating effect on the relationship between the misapplication of financial resources and organizational performance. Understanding the moderating role of institutional enforcement is essential for organizations seeking to enhance financial accountability and mitigate the risks associated with financial mismanagement.