The Structural Model of Organizational Governance Components in the Banking System
Keywords:
Organizational Governance, Banking Industry, Structural Equation ModelingAbstract
The purpose of this study is to propose a structural model of organizational governance components in the banking system to enhance banks’ efficiency and effectiveness in responding to environmental changes and stakeholder expectations. This is an applied, quantitative, and correlational study. The statistical population consisted of all senior and middle managers of Bank Mellat, estimated at 150 individuals. Based on the Krejcie and Morgan table, 108 participants were randomly selected. A 42-item researcher-developed questionnaire was used for data collection. The data were analyzed using SPSS and LISREL software, and structural equation modeling (SEM) was employed to test the conceptual relationships. Data analysis identified six key dimensions of organizational governance in the banking system: market orientation, organizational leadership, structural configuration, knowledge and experience transfer, communication, and ethical conduct. The KMO test (0.805) and Bartlett’s test confirmed the adequacy of the data for factor analysis. The structural model exhibited good fit indices. Confirmatory factor analysis confirmed that all variables had high factor loadings and the proposed conceptual model was validated. The study concluded that the banking governance framework identified in this research provides a comprehensive model for improving the performance and sustainability of banks. Emphasizing transparency, accountability, organizational structure, and professional ethics is essential for effective governance and stakeholder engagement. Applying this model can significantly enhance governance levels and resource allocation in the banking sector.
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