Internal Controls and Customer Satisfaction in the Telecommunications Industry in Uganda: A Case of MTN Uganda

Abstract

Every business organization's success depends on the satisfaction of the customers. Whenever a business is about to start, customers always come “first” and then the profit. Those companies that succeed in fully satisfying their customers will remain in the top position in the market. Today's business company has known that customer satisfaction is the key component for the success of the business, and at the same time, it plays a vital role in expanding the market value. In general, customers are those people who buy goods and services from the market or business that meet their needs and wants. Customers purchase products to meet their expectations in terms of money.

The study sought to explain the extent to which Customer Satisfaction in the telecommunications industry is driven by internal controls, using MTN Uganda as a case study. Many in Uganda recognize the importance of customer satisfaction and so have tried to streamline internal controls. However, customer complaints still persist despite efforts to address areas of dissatisfaction. This may be because the majority of them do not effectively operate their internal processes and are not using appropriate strategies to address the challenges. The study was guided by three objectives:

• To examine the effect of administrative policies on customer satisfaction in the telecommunications industry,


• To examine the effect of accounting procedures on customer satisfaction in the telecommunications industry and


• To examine the effect of auditing procedures on customer satisfaction in the telecommunications industry.

The study was based on a cross-sectional research design. 230 staff of the company were selected as respondents using a simple random sampling approach, and data was collected using a questionnaire. Findings show that there is a strong, positive relationship between administrative policies and customer satisfaction, there is a strong and positive relationship between accounting procedures and customer satisfaction in the telecommunications industry, and there is a strong and positive relationship between audit procedures and customer satisfaction in the telecommunications industry. The variables entered in the regression model explain an overall 65 percent variance in customer satisfaction at the company.

It was recommended that MTN Uganda conduct regular surveys of customers (current and potential) to assess their standing in expectations and satisfaction and identify areas that need critical attention. MTN Uganda should adopt the international customer quality guidelines, and all staff should undergo regular (every three months) refresher training regarding how to handle internal operations in their areas of speciality.