The mediating role of national culture on the relationship between corporate governance practices and corporate strategy effectiveness

• Main Author: Al Kaabi, Ahmed Khalfan Rashed
• Format: Thesis
• Language: English; English; English
• Published: 2022
• Subjects: T Technology (General)
• Online Access: http://eprints.uthm.edu.my/11005/1/24p%20AHMED%20KHALFAN%20RASHED%20AL%20KAABI.pdf; http://eprints.uthm.edu.my/11005/2/AHMED%20KHALFAN%20RASHED%20AL%20KAABI%20COPYRIGHT%20DECLARATION.pdf; http://eprints.uthm.edu.my/11005/3/AHMED%20KHALFAN%20RASHED%20AL%20KAABI%20WATERMARK.pdf; http://eprints.uthm.edu.my/11005/

An effective corporate governance is now considered crucial for regulating companies and enhancing their strategy achievement and therefore, improve organizations success. However, there has been a lack of conclusive evidence on the effects of corporate governance practices on corporate strategy effectiveness especially from the Middle Eastern region context. Most of the current studies now focuses on investigating corporate governance practices from the point of view of private or banking sectors. Conversely, corporate governance practices among public listed organizations in the United Arab Emirates (UAE) are still facing challenges on the lack of auditing experience and practices. Therefore, this study further explores the role of the corporate governance practices on corporate strategy effectiveness, the study also determined mediating effect national culture dimensions (power distance, masculinity, femininity, individualism, uncertainty avoidance, long term orientation) as the mediating variables between corporate governance practices and corporate strategy effectiveness in Abu Dhabi Accountability Authority (ADAA). Thus, the research contributes to current general knowledge of corporate governance practices and corporate strategy effectiveness from an Arabic region context particularly and to to the developing nations in general. In this quantitative research work, a structured questionnaire with a 5-point Likert scale was used as the instrument for data collection from the total of 282 respondents from ADAA. The validity and reliability of the measurement and structural models were ascertained. The Partial Least Square Structural Equation Modeling (PLS-SEM) was used to test the research hypotheses. Findings of this research revealed that there is a moderate level of corporate strategy effectiveness. From bootstrapping analysis, the results showed that there is a direct effect of the corporate governance practices on corporate strategy effectiveness; and also from the national culture dimensions power distance, masculinity vs. femininity, uncertainty avoidance, long term orientation had significant and positive effect on corporate strategy effectiveness. Furthermore, the result revealed that there is a substantial mediating effect of power distance, masculinity vs. femininity, uncertainty avoidance and long-term orientation in the relationship between corporate governance practices and corporate strategy effectiveness in ADAA. However, individualism culture value had no mediating effect as showed from the analysis. Finally, results from the study have theoretical and practical implications for corporations and other organizations that are interested in applying their culture with a view of facilitating their strategy effectiveness and organizational success. Based on the conclusion and implications discussed, this study presents several recommendations for future research