IMPACT OF CORPORATE GOVERNANCE ON ORGANIZATIONAL PERFORMANCE IN THE MEDIATING ROLE OF CORPORATE SUSTAINABILITY: A CASE STUDY OF CONSTRUCTION COMPANIES OF KP

Abstract

The purpose of this is to investigate the impact of corporate governance (CG) on organizational performance (OP) with mediating role of corporate sustainability (CS) by deploying construction companies of Peshawar, Pakistan. In this study CG has been taken as an independent variable while OP as a dependent variable with a mediating role of CS. All constructions of KP have been considered as a population in which only Peshawar construction companies selected as a sample to collect the data for this study as a primary source via adopted questionnaire in form of likert scale by using convenient sampling technique. The data has been collected from 70 respondents in out of 150 responses of the employees and employers of construction companies’, Peshawar. The results of this study found significant and positive relationship between CG and OP, on other side there has a significant relationship between CG and OP with full mediation of CS. The study is applicable with regards to construction companies of Peshawar, Pakistan since the construction companies was always deemed to be one of the most vital sector for the economy to be able to function. The current study specify the acknowledgement and grasp about the implementation of CS and the appropriate attentions towards the application of all the three dimensions of sustainability will results in boosting OP of the construction companies in Peshawar, Pakistan. This study contributed to the body of knowledge by examining the mediating role of CS between CG and OP. Investors, managers and regulators can obtain further insights, especially those seeking to improve a OP in the emerging markets, through a sound CG system and extensive sustainability development.