Communication Climate as Predictor of Perceived Corporate Governance and Organizational Success
Authors: Quilon Annabelle , Perreras Rosemarie 
Published: February 2023

Empirical studies proved that good corporate governance had a positive link to the success of an organization. Good in directing and managing organizational processes, structures, and information mean satisfaction guaranteed was given to all stakeholders. Essential factor like working atmosphere may be considered when looking into corporate governance as well as organizational success. However, limited literature focused on the importance of communication climate and its connection to corporate governance and organizational success. Hence, this study looked into the predicting effect of communication climate to perceived corporate governance and organizational success. A total of ninety-eight rank and file employees voluntarily participated in accomplishing three questionnaires such as the Communication Climate Inventory by Costigen & Schiedler; Corporate Governance Survey adapted from Wickramanayake’s Seven Characteristics of Corporate Governance; and Organizational Success Survey adapted from Ilyas & Rafig used to measure communication climate, corporate governance, and organizational success respectively. Results revealed that communication climate was a predictor of perceived corporate governance and organizational success. This implied that the role of supervisors in setting work conditions was essential on how rank and file employees perceived corporate governance and organizational success.ReferencesAbdu Rashid, M., Azman bin Othman, M., Zainudin bin Othman, M., Ain bt Arshad, F. (2015). The influence of work environment on employees job performance: a case study of Administrative staff in a manufacturing industry. Conference on Business Management Research II (CBMR II 2015).Abdussamad, Z. (2015). The influence of communication climate on the employees’ performance at government agencies in Gorontalo city. Asia pacific Journal on Multidisciplinary Research, 3(5).Aggarwal, P. (2013). Corporate governance and corporate profitability. International Journal of Scientific and Research Publication, 3(12).Baloyi, S., Van Waveren, C., & Chan, K. (2014). The rose of supervisor support in predicting employee job satisfaction from their perception of the performance management system: a test of competing models in engineering environments. South African Journal of Industrial Engineering, 25(1), 85-95.Burmeister, E. & Aitken, L. (2012). Sample size: how many is enough. Australian Critical Care. Elsevier.Chaudhary, R., Rangnekar, S., & Kumar Barua, M. (2014). Organizational climate, climate Strength and work engagement. Procedia – Social and Behavioral Sciences, 133, 291-303.Creswell, J. (2012). Educational research planning, conducting, and evaluating quantitative and qualitative research, 4th edition. Boston, Pearson Education, Inc.Deloitte. (2016). Good governance driving corporate performance? A meta-analysis of academic research & invitation to engage in the dialogue. NYENRODE Business Universiteit.Dibra, R. (2016). Corporate governance failure: the case of enron and Parmalat. European Scientific Journal, 12(16).El Nabawy Saleh Dewydar, W. (2015). The optimum relationship between managers and employee. International Journal of Business and Social Science, 6(8).Eluka, J. & Okafor, C. (2014). A critical review of the effects of working conditions on employee performance: evidence from Nigeria. EBS Journal of Management Sciences, 9.Glomo-Narzoles, D. (2012). Communication climate: its relation to institutional productivity. Asian Journal of Social Sciences & Humanities, 1(4).Gupta, P. and Mehta Sharma, A. (2014). A study of the impact of corporate governance practices on firm performance in indian and south Korean companies. Procedia Social and Behavioral Sciences, 133, 4-11.Hasan, B. & Maqsood, A. (2012). Relationship between organizational communication climate and interpersonal conflict management. Pakistan journal of psychology, 42(2).Hove-Sibanda, P., Sibanda, K., & Pooe, D. (2017). The impact of corporate governance on firm competitiveness and performance of small and medium enterprises in south Africa: a case of small and medium enterprises in vanderbijpark. Acta Commercii, 17(1), https://doi.org/10.4102/acv17i1.446Hsiao, J. and Lin, D. (2018). The impacts of working conditions and employee competences of fresh graduates on job expertise, salary and job satisfaction. Journal of Reviews on Global Economics, 7, 246-259.Ilyas, M. & Rafig, M. (2012). Impact of corporate governance on perceived organizational success. International journal of business and social science, 3(13).Ismajli, N., Zekiri, J., Qostja, E., & Krasniqi, I. (2015). The importance of motivation factors on employee performance in Kosovo Municipalities. J Pol Sci Pub Aff 3: 152 https://doi.org/10.4172/2332-0761.1000152.Keay, A. (2017). Stewardship theory: is board accountability necessary? International of Law and Management, 59(6), 1292-1314.Kulkani, R. & Maniam, B. (2014). Corporate governance – indian perspective. International Journal of Trade, Economics, and Finance, 5(4).Kumar, Sar, A. (2018). Impact of corporate governance on sustainability: a study of the indian fmcg industry. Academy of Strategic Management Journal, 17(1).Lantara, A. (2019). The effect of the organizational communication climate and work enthusiasm on employee performance. Management Science Letter, 9, 1243-1256.Le Quang Canh, Kwang Soo Kim, & Yu Yi (2014). Effects of corporate governance on the performance of private economic groups in vietnam. Journal f International Trade & Commerce, 10(6), 39-35.L’huillier, B. (2014). What does “corporate governance” actually mean? Corporate Governance International Journal of Business in Society, 14(3).Lotko, M., Razgale, I., & Vilka, L. (2015). Mutual expectations of employers and employees as a factor affecting employability. The European Journal of Social and Behavioral Sciences, 17.Malik, M., Ahmad, A., Gomez, S., & Ali, M. (2011). A study of work environment and employees’ performance in Pakistan. African Journal of Business Management, vol. 5(34), DOI:10.5897/AJBM11.1502Mallah, T. (2016). Creating an organizational climate for communication internal communication and leadership in a project-based international organization: the case of unops. Unpublished Thesis: Master in International Management, University of Tampere, School of Communication, Media, and Theatre, November 2016.Mat Yasin, F., Muhamad, R., Sulaiman, N. (2014). Corporate governance research: a review of qualitative literature. International Conference on Technology and Business Management, .Meitisari, N., Hanafi, A., & Wahab, Z. (2018). Analysis on the effect of organizational communication climate and career development toward employee performance with job satisfaction. International Journal of Scientific and Research Publication, 8(8).Mohammed, R. and Hussein, A. (2013). Communication climate and organizational performances. https://www.researchgate.net/publication/236133199 Communication Climate and Organizational_PerformancesNaga Parameswari, B. and Yugandhar, V. (2015). The role of human resource management in organizations. International Journal of Engineering Technology, Management and Applied Sciences, 3(7).Neubaum, D., Thomas, C., Dibrell, C., & Craig, J.B. (2017). Stewardship climate scale: measurement and assessment of reliability and validity. Family Business Review, 30(1), 37-60.Nordin, S., Sivapalan, S., Bhattacharyya, E., Hashim, H., Wan Ahmad, W.F., Abdullah. (2014). Organizational communication climate and conflict management: communications management in an oil and gas company. Procedia Social and Behavioral Sciences, 109, 1046-1058.Pardede, E., Hasan Miraza, B., Sirojuzilam, & Lubis, S. (2014). The analysis of communication climate and organizational culture in improving regional development planner’s performance. Asian Journal of Humanities and Social Studies, 2(3).Ragab, O. & Elshazly, E. (2019). Impact of communication climate on nurse’s organizational career growth and empowerment. https://www.researchgate.net/ publication/334721841 _Impact_of_Communication_Climate_on_Nurse's_ Organizational_Career_Growth_ and_Empowerment.Rangarajan, R. (2017). Determination of organizational communication climate in indian Banking system. IOSR Journal of Business and Management, 19(9)Rusu, G, & Avasilcai, S. (2014). Linking human resources motivation to organizational climate. Procedia – Social and Behavioral Sciences, 124, 51-58.Samson, G., Waiganjo, M., & Koima, J. (2015). Effects of workplace environment on the performance of commercial banks employees in Nakuru Town. International Journal of Managerial Studies and Research, 2(12) 76-89.Sawithri, L., Nishanthi, H., Amarasinghe, K. (2017). The impact of employers-employee relations on employee commitment: a case from Sri Lnka. Kelaniya Journal of Human Resource Management, 12(2).Subramanian, K. (2017). Employer employee relationship and impact on organization structure and strategy. International journal of Innovative Trends in Engineering, issue, 43(27).Subramanian, S. (2018). Stewardship theory of corporate governance and value system: the case of a family-owned business group in India. Indian Journal of Corporate Governance, 11(1), 88-102.Sheikh Ali, A., Abdi Ali., & Ali Adan, Abdiqani. (2013). Working conditions and employees’ productivity in manufacturing companies in sub-saharan African context: case of Somalia. Educational Research International. 2, 67-78.Wickramanayake, K. (2007, March 06). Seven Characteristics of Corporate Governance. [Blog post]. https://www.wview.org