Presenting a Model Based on the Productivity of Audit Firms with Regard to the Effectiveness of the Theory of Constraints (Structural Equation Modeling Approach)
Keywords:
Theory of Constraints, Audit, Bottleneck, EffectivenessAbstract
Objective: The present study aimed to develop a productivity-based model for audit firms with regard to the effectiveness of the Theory of Constraints and to investigate the relationships among causal, contextual, intervening, strategic, and consequential factors through structural equation modeling.
Methodology: This applied study employed a descriptive-survey design. The statistical population consisted of managers, experts, and employees of audit firms. Due to the unlimited population size, 384 participants were selected using Cochran’s formula through simple random sampling. Data were collected using a researcher-made questionnaire developed based on interviews with experts in auditing and management accounting. The reliability of the instrument was confirmed with a Cronbach’s alpha coefficient above 0.80. Structural equation modeling and Smart PLS3 software were used for data analysis. Model fit was evaluated at the measurement, structural, and overall levels using the SRMR index.
Findings: Inferential findings indicated that all factor loadings exceeded 0.40, confirming convergent and discriminant validity of the constructs. The SRMR value was 0.06, indicating acceptable model fit. The results demonstrated that causal conditions had a significant effect on strategies through the mediating role of the core category (T=2.78, p<0.001). Contextual conditions also significantly affected outcomes through strategies (T=2.76, p<0.001). Intervening factors showed a significant indirect effect on outcomes via strategies (T=4.44, p<0.001). Furthermore, the core category significantly influenced outcomes through strategies (T=3.07, p<0.001). Effect size analysis revealed that strategies had the strongest impact on outcomes (f²=1.09), followed by the effect of causal conditions on the core category (f²=0.29).
Conclusion: The findings suggest that the Theory of Constraints provides an effective framework for identifying bottlenecks, improving productivity, enhancing audit quality, and increasing organizational effectiveness in audit firms. Strategic actions and core organizational categories play a crucial mediating role in transferring the effects of causal, contextual, and intervening factors to organizational outcomes. Moreover, structural equation modeling enabled a comprehensive analysis of managerial, human resource, and operational relationships, offering evidence-based guidance for improving the performance of audit institutions.
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Copyright (c) 2025 Ahmad Reza Ghouhestani, Mohammad Hamed Khanmohammadi, Shohreh Yazdani (Author)
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