Effects Of Government Policies On Organisational Performance

The new paradigm of government management has stimulated public organizations to establish innovative and competitive management policies through public entrepreneurship in order to provide excellent public service and to enhance organizational performance. This research study aims to investigate the effects of government policy on organizational performance through the mediating role of public entrepreneurship of the state.

This research employs a cross-sectional questionnaire study. Data were collected from 216 government officials through five-point Likert scale questionnaires with validity and reliability analyses. Data were analyzed by descriptive statistics and inferential statistics toward path analysis.

The research results reveal that government policy has a significant direct influence on organizational performance with a standardized coefficient of 0.655. Government policy has a significant indirect effect on organizational performance through the mediating role of public entrepreneurship with a standardized coefficient of 0.566. The total effects can be described with a standardized coefficient of 0.733 at a 0.05 significance level.

The government should establish innovative and competitive public policies to support a rapid change of entrepreneurial orientation, and transform policies into action. As public entrepreneurship has a significant mediating role in enhancing organizational performance, conventional public structures of performance management are being replaced by more innovative, adaptive, and competitive public entrepreneurship in order to get the desired and effective public outcomes for an organization.