The Impact of Strategy and Human Resource Management on Governance Improvement in the Third Sector of the Economy

Document Type : Original Article

Authors

1 PhD student, econometrics, Faculty of Economics, Allameh Tabatabaei University, Tehran, Iran

2 PhD student, Public Administration, Faculty of Economics, Management and Social Sciences, Shiraz University, Shiraz, Iran

3 Department of Business-Government Management, Faculty of Governance, Shahed University, Tehran, Iran.

10.22098/cpa.2025.16518.1056

Abstract

Nonprofit organizations, as the third sector of the economy, play a vital role in addressing social challenges. However, effective governance in these organizations consistently faces obstacles. This study aimed to investigate the impact of organizational strategy (STR) and human resource management (HRM) on governance (GOV) in nonprofit organizations in Bushehr Province, Iran. The statistical population included 556 nonprofit organizations in the province, of which 104 organizations focused on charitable activities were selected as the target population. Using simple random sampling, 250 questionnaires were distributed, and 166 completed questionnaires (response rate: 66.4%) were collected. The research instrument was a standardized Likert-scale questionnaire with confirmed reliability (Cronbach’s alpha: 0.81–0.89) and convergent validity (AVE > 0.5). Data were analyzed using confirmatory factor analysis (CFA) and structural equation modeling (SEM) in SPSS26 and AMOS24. Findings revealed that organizational strategy (path coefficient: 0.456) and human resource management (path coefficient: 0.329) had direct and significant effects on governance (p < 0.001). Additionally, HRM mediated 31.5% of the impact of STR on GOV. These results underscore the need for managers to prioritize collaborative strategy development and strengthening HR systems to enhance governance in nonprofit organizations.

Keywords

Files

History

  • Receive Date: 09 January 2025
  • Revise Date: 13 March 2025
  • Accept Date: 13 March 2025

Share

How to cite

Statistics