Regulatory Compliance and Internal Control as Determinants of SME Financial Performance in Dubai Implications for the Middle East
Article Sidebar
Main Article Content
Abstract
Small and Medium Enterprises (SMEs) play a crucial role in supporting economic diversification in Dubai and the broader Middle East region. However, despite their strategic importance, SMEs remain vulnerable to financial instability due to weak governance structures, particularly in regulatory compliance and internal control practices. This study aims to examine the effect of regulatory compliance and internal control on SME financial performance in Dubai. This research adopts a quantitative approach using primary data collected through structured questionnaires distributed to financial staff of SMEs. A total of 69 valid responses were obtained, representing SMEs across various sectors. Data were analyzed using multiple linear regression with SPSS. The results indicate that regulatory compliance has a significant positive effect on SME financial performance, while internal control also positively contributes to improving financial outcomes. These findings suggest that stronger governance mechanisms can enhance financial sustainability and operational efficiency. This study contributes to the literature by providing empirical evidence from a Middle Eastern context and offers practical implications for SME managers and policymakers to strengthen governance frameworks.
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
Anisa, A. S., Santoso, R. A., & Fitriana, F. (2025). Bibliometric Analysis of Auditor Switching Development with Vosviewer. Golden Ratio of Auditing Research, 6(17), 284–295. https://doi.org/https://doi.org/10.52970/grar.v6i1.1462
Bria, V., Iskandarsyah, A. D., Marpaung, W., Santoso, R. A., & Fitriana, F. (2024). Analisis Pengaruh Sistem Pengendalian Internal Dan Akuntabilitas Terhadap Pencegahan Fraud Pengelolaan Dana Desa Berdasarkan Literature Review Terindeks Sinta Tahun 2020-2024. Innovative: Journal Of Social Science Research, 4(3), 16285–16302. https://doi.org/https://doi.org/10.31004/innovative.v4i3.12482
Deviani, R., Puspitasari, A., Affadar, F., Basaria, V., & Santoso, R. A. (2024). Pengaruh Audit Internal dalam Menciptakan Good Corporate Governance. EKOMA:JurnalEkonomi,Manajemen,Akuntansi, 3(3), 1152–1161. https://doi.org/https://doi.org/10.56799/ekoma.v3i3.3241
Dharmawati, T., Irsyad, S., Pandu, K., & Cakranegara, A. (2022). Mediation Effects of Fraud Prevention on the Relationship of Internal Control , Risk Management and Organizational Performance. ATESTASI: Jurnal Ilmiah Akuntansi, 5(2), 540–555. https://doi.org/https://doi.org/10.57178/atestasi.v5i2.123
Dorogov, N. I., Kapitonov, I. A., & Batyrova, N. T. (2021). RETRACTED ARTICLE: Compliance as a Cost-Effective System of Interaction Between Business and Government. Journal of Business Ethics, 174, 485. https://doi.org/https://doi.org/10.1007/s10551-021-04890-5
Esan, O., Ajayi, F. A., & Olawale, O. (2024). Managing global supply chain teams : human resource strategies for effective collaboration and performance. GSC Advanced Research and Reviews, 19(02), 013–031. https://doi.org/https://doi.org/10.30574/gscarr.2024.19.2.0161
Firdausi, Q., Safitri, S., Manulang, N., Daclan, F., & Santoso, R. A. (2025). A Bibliometric Analysis of Internal Audit Research in Indonesia. Golden Ratio of Finance Managemen, 5(1), 208–218. https://doi.org/https://doi.org/10.52970/grfm.v5i1.996
Fitriana, Saepudin, D., & Santoso, R. A. (2021). Fraud Diamond Theory Detect Financial Statement Fraud in Manufac-turing Companies on The Indonesia Stock Exchange. International Business and Accounting Research Journal, 5(2), 93–105. https://doi.org/http://dx.doi.org/10.35474/ibarj.v5i2.183
Hair, J., & Alamer, A. (2022). Research Methods in Applied Linguistics Partial Least Squares Structural Equation Modeling ( PLS-SEM ) in second language and education research : Guidelines using an applied example. Research Methods in Applied Linguistics, 1(3), 100027. https://doi.org/10.1016/j.rmal.2022.100027
Hulu, A. W. Y., Ana, F., & Santoso, R. A. (2024). Tema Yang Muncul Dalam Penerimaan Pajak (Tinjauan Bibliometrik). Jurnal Akuntansi Dan Pajak, 24(2), 1–5. https://doi.org/http://jurnal.stie-aas.ac.id/index.php/jap
Koeswayo, P. S., Haryanto, H., & Handoyo, S. (2024). The impact of corporate governance , internal control and corporate reputation on employee engagement : a moderating role of leadership style. Cogent Business & Management, 11(1). https://doi.org/10.1080/23311975.2023.2296698
Kuswara, Z., Pasaribu, M., Fitriana, & Santoso, R. A. (2024). Exploring The Latest Internal Audit Trends: Bibliometric Study Based On Scopus Data 2020-2023. Jurnal Review Pendidikan Dan Pengajaran, 7(5), 2684–2690. https://doi.org/DOI: https://doi.org/10.31539/costing.v7i5
Mayuri, N. K. L., Santoso, R. A., & Fitriana, F. (2024). Analisis Data Forensik untuk Mendeteksi Fraud Laporan Keuangan Perusahaan (Sebuah Literatur Review). Innovative: Journal Of Social Science Research, 4(3), 8756–8772. https://doi.org/https://doi.org/10.31004/innovative.v4i3.11455
Mulyani, R., Wijaya, D. P., Putri, A., Pratiwi, T., & Santoso, R. A. (2024). Analisa Audit Internal Terhadap Kinerja Keuangan Berdasarkan Literatur Review Terindeks Sinta. Jurnal Pustaka Cendekia Hukum Dan Ilmu Sosial, 2(1), 28–39. https://doi.org/https://doi.org/10.70292/pchukumsosial.v2i1.38
Organisation for Economic Co-operation and Development. (2023). OECD SME and Entrepreneurship Outlook 2023 (27 June 20). OECD Publishing. https://doi.org/https://doi.org/10.1787/342b8564-en
Otoo, F. N. K., Manpreet Kaur, & Rather, N. A. (2023). Evaluating the impact of internal control systems on organizational effectiveness. LBS Journal of Management & Research, 21(1), 135–154. https://doi.org/10.1108/LBSJMR-11-2022-0078
Prencipe, A. (2025). Accountability between compliance and legitimacy: Rethinking governance for corporate sustainability. Sustainability, 17(20), 9305. https://doi.org/https://doi.org/10.3390/su17209305?urlappend=%3Futm_source%3Dresearchgate.net%26utm_medium%3Darticle
Rahman, N. H. A., Jamaluddin, A., Hamzah, N., & Aziz, K. A. (2019). Establishing an effective internal control system for fraud prevention: a structured literature review. Asia-Pacific Management Accounting Journal, 14(3), 21–47. https://doi.org/https://doi.org/10.24191/APMAJ.v14i3-02
Rahmat, F., Padang, R. G., Santoso, R. A., & Fitriana, F. (2024). Analisis Faktor-Faktor Yang Mempengaruhi Kepatuhan Wajib Pajak Berdasarkan Literature Review Terindeks Sinta Tahun 2018-2023. EKOMA: Jurnal Ekonomi, Manajemen, Akuntansi, 3(4), 351–362. https://doi.org/https://doi.org/10.56799/ekoma.v3i4.3427
Rahmat, F., Santoso, R. A., & Daclan, F. (2025). Analisis Bibliometrik Terhadap Perkembangan Penelitian Perpajakan Digital Dengan Vosviewer Berdasarkan Data Scopus 2018-2025. PARADOKS Jurnal Ilmu Ekonomi, 8(3), 1304–1312. https://doi.org/https://doi.org/10.57178/paradoks.v8i3.1422
Safitri, S., Firdausi, Q., Fitriana, F., & Santoso, R. A. (2024). Analisis Peran Audit Internal Terhadap Pencegahan Fraud Berdasarkan Literature Review Terindeks Sinta. Jurnal Revenue : Jurnal Ilmiah Akuntansi, 5(1), 145–157. https://doi.org/https://doi.org/10.46306/rev.v5i1.406
Santoso, R. A., Januarsih, Y., & Retnowati, W. (2025). International Journal of Current Science Research and Review Fraudulanet Financial Reporting Using Fraud Pentagon Model : Evidence form the State-Owned Companies in Indonesia Corresponding Author : Rachmat Agus Santoso Corresponding Author : Rachmat Agus . International Journal of Current Science Research and Review, 08(12), 6689–6700. https://doi.org/10.47191/ijcsrr/V8-i12-79
Santoso, R. A., & Masitoh, I. (2022). Analisis kompetensi SDM dan independensi audit internal terhadap kualitas laporan audit. Jurnal Audit, Pajak, Akuntansi Publik (AJIB), 1(1), 46–51. https://doi.org/https://doi.org/10.32897/ajib.2022.1.1.1321
Santoso, R. A., Meutia, Taqi, M., & Januarsi, Y. (2025). External Stimulus and Organizational Culture in Enhancing MSME Performance Through Radical Innovation and Knowledge Sharing. International Journal of Accounting and Economics Studies, 12(7), 253–266. https://doi.org/https://doi.org/10.14419/n9rh5x74
Santoso, R. A., Rukhviyanti, N., & Hayati, N. (2023). Pemetaan Lanskap Riset Human Development Index dan Technology Menggunakan Data Scopus dengan Analisis Bibliometrik. Media Jurnal Informatika, 15(2), 123. https://doi.org/https://doi.org/10.35194/mji.v15i2.3480
Saputra, I., Mariam, S., Sari, N. Z. N., Febriyanti, S., & Santoso, R. A. (2024). Pengaruh Kompetensi dan Pengalaman Kerja Auditor Internal Terhadap Kualitas Audit Berdasarkan Artikel Terindeks Sinta. EKOMA : Jurnal Ekonomi, Manajemen, Akuntansi, 3(4), 573–578. https://doi.org/https://doi.org/10.56799/ekoma.v3i4.3535
Sekaran, U., & Bougie, R. (2020). Research methods for business : a skill-building approach (seventh). Wiley. https://doi.org/http://lccn.loc.gov/2015051045
Sepadi, M. M., & Hutton, T. (2025). Health and Safety Practices as Drivers of Business Performance in Informal Street Food Economies: An Integrative Review of Global and South African Evidence. International Journal of Environmental Research and Public Health, 3(1), 1–23. https://doi.org/https://doi.org/10.36346/sarjhss.2023.v05i04.009
Septiana, Y. N., Septiani, Y. N., & Santoso, R. A. (2024). Analisis Pengaruh Kompensasi, Independensi dan Profesionalisme Audit Internal Terhadap Kualitas Audit. EKOMA: Jurnal Ekonomi, Manajemen, Akuntansi, 3(4), 397–403. https://doi.org/https://doi.org/10.56799/ekoma.v3i4.3482
Solihat, S., Tita, T., Fitriana, F., & Santoso, R. A. (2024). Analisis Pengaruh Sanksi Pajak Terhadap Kepatuhan Wajib Pajak Orang Pribadi Berdasarkan Literature Riview Terindeks Sinta Tahun 2020-2024. EKOMA: Jurnal Ekonomi, Manajemen, Akuntansi, 3(4), 212–226. https://doi.org/https://doi.org/10.56799/ekoma.v3i4.3444
Suandani, R., Dachlan, F., & Santoso, R. A. (2024). Deteksi Kecurangan Laporan Keuangan Dengan Metode Bibliometrik. Jurnal Review Pendidikan Dan Pengajaran (JRPP), 7(1 SE-Articles), 2684–2690. https://doi.org/https://doi.org/10.31004/jrpp.v7i1.25800
Ullah, K., & Hardjono, R. K. (2025). Entrepreneurship & Creative Industry The Role of Artificial Intelligence in Enhancing Business Innovation and Creativity in the Cosmetics Industry of Dubai. 04(01), 1–21. https://doi.org/https://doi.org/10.14710/ajlm.2024.24556
Ulupui, I. G. K. A., Zairin, G. M., Musyaffi, A. M., & Sutanti, F. D. (2024). Navigating uncertainties: a tri-factorial evaluation of risk management adoption in MSMEs. Cogent Business & Management, 11(1), 1–18. https://doi.org/https://doi.org/10.1080/23311975.2024.2311161
Utami, D. W. B., Santoso, R. A., Fitriana, & Nurkhaeriyah, N. (2023). Analisis Bibliometrik Tax Avoidance Dalam Sudut Pandang Ekonomi Dan Hukum. Jurnal De Jure Muhammadiyah, 7(2), 1–17. https://doi.org/https://doi.org/10.32534/djmc.v7i2.5084