Impact of Application of Governance Principles and Performance Management System on the Organization Performance: Study on Saudi Healthcare System
DOI:
https://doi.org/10.24203/2t58ce41Keywords:
Strategic management, Effectiveness, Corporate Governance, Performance and Private Companies, Organization and PerformanceAbstract
This study investigates the impact of integrating governance structure and performance management systems on the organization performance in Saudi Arabia’s healthcare sector. The research employs a causal investigative approach, grounded in agency theory, resource-dependency theory, and balanced scorecard principles, to explore how these systems enhance decision-making, accountability, and resource utilization. Primary data were collected through cross-sectional surveys targeting healthcare professionals across key regions in Saudi Arabia, supplemented by comprehensive literature reviews. The findings reveal a significant positive relationship between governance structures, performance management systems and organizational performance, with employee engagement and commitment as key mediators. With moderators such as organizational size and compliance with local regulations significantly influence this relationship. This integration fosters operational transparency, enhances patient satisfaction, and improves adaptability to the evolving Saudi healthcare market. It will have clear academic contribution as it addresses a significant gap in the existing literature concerning the integration of performance management and organizational governance systems within Saudi Arabia’s healthcare sector. In addition, it will provide Practical Implications as this study focuses on specific challenges and gaps in integrating governance and performance management systems. It provides actionable recommendations which will promote accountability, transparency, and efficient resource allocation. By leveraging digital tools like Hospital Information Systems, these systems enable real-time performance tracking and data-driven decision-making. The study will act as supportive tool to healthcare leaders and policymakers to cultivate a culture of performance excellence, optimize resource allocation, and achieve sustainable strategic objectives which will reflect on improving patient outcomes which will be aligned with the Saudi Arabia’s Vision 2030.
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