DOES GOOD GOVERNANCE INFLUENCE ORGANIZATIONAL PERFORMANCE?

Abstract

This paper targets to review the effectiveness of governance structure and implementation maturity on organizational performance and to provide stakeholders with a better understanding of the firms' current and future performance by showing how managers handle the crisis and mitigate the risk. The current study involves reviewed research articles that were gathered from Emerald Insight, Scopus and Heinonline. A total of 20 articles have been reviewed from 2017 to 2022. This research has discussed organizational performance, financial performance, and element of governance. The article shown that the governance using internal and external factor to considered importance in improving organizational performance. The focus of each organizational is the performance of companies, and organizational will use all the elements that company provided to improve the management. The article also shown that the company will use any structure or methods to overcome the problem such as performance of employees, environment factor, financial factor, or management factor. Strong governance affects management decision-making regarding strategies related to performance disclosure. Good corporate governance helps to increase the different opinions and the quality of the discussion related to the disclosure process. Therefore, this review will benefit the organization in providing a proper guideline on how to practice a good governance in an organization. This article analyses 20 research articles on definition organizational performance, financial performance, and element of governance.