Enhancing organizational behaviour through corporate governance: The crucial role of organizational culture and sustainability

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Abstract

Corporate sustainability (CS) has become the world’s most persistent matter, which enormously enhances the success of organizations. The purpose of the study is to explore the factors that affect CS in small and medium-sized enterprises (SMEs) in Saudi Arabia. The study develops a model based on vigorous literature and proposes a few hypotheses based on the studies of Moslehpour et al. (2022) and Wijethilake et al. (2023). The study employed a survey strategy and found the results on 336 valid samples. The researchers applied a path analysis using SmartPLS 4 to predict the effects. The results of the study demonstrate a positive significant impact of organizational culture (OC), business infrastructure (BI) and corporate governance (CG) on CS. On the other hand, corporate alignment (CA) is a negative significant predictor of CS. Besides, CG mediates the relationship between OC, BI and CS but does not mediate the connection between CA and CS. The SMEs’ top management may enhance performance by considering OC, BI, CA and CG constructs. Finally, the findings support to literature to overcome gaps in the direct and indirect role of CG integrated with OC, BI and CA towards CS.

Keywords: Corporate Sustainability, Organizational Culture, Business Infrastructure, Corporate Alignment, Corporate Governance, SMEs

Authors’ individual contribution: Conceptualization — N.A.A.A.; Methodology — N.A.A.A. and B.A.S.; Software — B.A.S.; Validation — N.A.A.A.; Formal Analysis — B.A.S.; Investigation — N.A.A.A. and B.A.S.; Resources — N.A.A.A.; Data Curation — N.A.A.A. and B.A.S.; Writing — Original Draft — N.A.A.A. and B.A.S.; Writing — Review & Editing — N.A.A.A. and B.A.S.; Visualization — N.A.A.A.; Supervision — N.A.A.A.; Project Administration — N.A.A.A.; Funding Acquisition — N.A.A.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: L1, L2, L6, O3, Q5

Received: 14.08.2023
Accepted: 19.01.2024
Published online: 22.01.2024

How to cite this paper: Abdelwahed, N. A. A., & Soomro, B. A. (2024). Enhancing organizational behaviour through corporate governance: The crucial role of organizational culture and sustainability. Corporate Governance and Organizational Behavior Review, 8(1), 94–104. https://doi.org/10.22495/cgobrv8i1p8