Impact of corporate governance on organizational performance in five-star hotels: the moderating role of governance barriers

Abstract EN

This research aims to investigate the impact of corporate governance on organizational performance; taking in to consideration the moderating role of many governance barriers as well.

applying stratified random sampling technique; 92 five-star hotels in Egypt were selected as a representative sample.

this research entailed general managers, executive managers, resident managers and other managerial positions in these hotels.

a simple random sampling was also adopted in order to survey those respondents.

the data collected from 77 respondents were analyzed through structural equation modeling (SEM) using smart pls statistical program.

results clarify that implementing five principles of corporate governance has a positive impact on organizational performance namely; rapid adaptation, time to market, cost reduction, employee satisfaction and innovation.

in addition, many corporate governance barriers were found to negatively moderate the relationship between corporate governance and organizational performance.

in essence, the findings of the study provide implications for both hotels’ managers and board of directors which enable them to reach high levels of competitiveness by achieving high organizational performance especially innovation.