review_article August 8, 2026

Organizational Culture as a Bridge: Linking Governance to Enhanced Performance in Nepal’s Public Sector Enterprises

Bishnu Prasad Gyawali, Mahananda Chalise, Dilli Raj Sharma, Dhan Raj Chalise
Volume1
Issue3
Pages119-129
DOI10.5281/zenodo.21861439
Abstract

Public sector enterprises (PSEs) play an important role in economic development and public service delivery, especially in developing countries such as Nepal. However, many PSEs still experience challenges in relation to weak governance structures, inefficiencies and limited organizational performance. While corporate governance reforms have been introduced to enhance accountability and transparency, governance mechanisms alone may not be sufficient in explaining variations in organizational performance. Internal factors such as organizational culture and external strategic orientations such as market orientation may influence the governance practices translating into performance outcomes.
This study analyzes the relationships between corporate governance, organizational culture, market orientation and organizational performance. Specifically, it examines the mediating effect of organizational culture and the moderating effect of market orientation in the governance-performance relationship. The approach of this study is systematic literature review in which the synthesis of peer-reviewed studies published between 2010 and 2025 is carried out.
The findings show that corporate governance has a positive impact on organizational performance, while organizational culture serves as an important mechanism to translate the governance practices to advance organizational performance. In addition, market orientation can reinforce the relationship between governance and performance by making organizational behavior more responsive to stakeholder needs. This study adds to the existing literature by presenting an integrated conceptual framework for the relationship between governance, culture, and market orientation to explain the performance in the public sector enterprises.

Keywords
Corporate governanceorganizational culturemarket orientationorganizational performancepublic sector enterprises.
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