Formalization and paperwork-related stressors in municipal internal control: Independence and performance

Abstract

This article investigates how organizational formalization relates to conflict and role ambiguity among internal control professionals and how these stressors are associated with internal control independence and job performance in Brazilian municipalities. This is a quantitative cross-sectional study based on an online survey of 280 internal control professionals, conducted between December 2023 and December 2024. Sampling was non-probabilistic, convenience-based, and self-selective. The instrument included a sociodemographic section and validated scales for formalization, conflict and role ambiguity, internal control independence, and job performance, using a seven-point Likert scale, with recoding of the ambiguity scale to align the direction of the scores. The relationships were estimated using structural equation modeling with partial least squares, including assessment of measurement and structural models, discriminant validity using the Fornell-Larcker and HTMT criteria, verification of multicollinearity using the Variance Inflation Factor (VIF), and inference via bootstrapping with 5,000 resamples. The results indicate that greater formalization is associated with lower levels of conflict and ambiguity, and that these stressors are linked to less independence and poorer performance. The study contributes by quantifying, in the municipal context, formalization as a mechanism for clarification and by translating the findings into practical management measures: precisely defining responsibilities, segregating and scaling functions, documenting processes, and ensuring institutional safeguards for technical autonomy. The evidence supports governance policies associated with reducing uncertainty, protecting the control function, and improving the effectiveness of local internal control.