Assessing the link between budgeting, strategic planning, and control in shaping profitability: Evidence from manufacturing companies in equatorial Guinea

Budgeting, planning and controlling have become important concern for every organization that strives to survive and achieve profitability in a dynamic and competitive business environment. A comprehensive organizational structure underpinned by a strategic management function such as budgeting, planning and controlling is a pivotal hallmark for maximizing profit which can subsequently snowball to other superior performances. Some organizations are suffocating financially in this current economic crisis due to lack of proper planning, controlling and budgeting. The present study sought to examine the impact of budgeting, planning and controlling on the profitability of manufacturing firms in Equatorial Guinea based on the experiences of some selected manufacturing companies in the Malabo city of Equatorial Guinea. The research used the quantitative approach, survey method, and questionnaire for the data collection process. A sample size of 24 respondents comprising the top management, middle management and lower management were engaged in the study. The data was analysed using the IBM SPSS 23. The results indicated that manufacturing firms adopt management functions in their operations. There spondents also showed that budgeting, planningand controlling have positive impact on the growth and development of their organizations. The result further indicated that budgeting, planning and controllingare important determinants of profit ability of manufacturing firms. The researchers recommended that managers employ budgeting, planning and controlling in theoperations of their business since these management functions have implications on the financial performanceof their organizations.