Good Governance Principles Affecting Organizational Efficiency of Public Companies in ASEAN Countries

Abstract

The purposes of this research were: 1) To study an application of good governance principles and organizational efficiency of public companies in ASEAN Countries; 2) To find a relationship between good governance and organizational efficiency of public companies in ASEAN Countries; and 3) To find good governance principles affecting organizational efficiency of public companies in ASEAN Countries. This is a quantitative research. Research questionnaire is used as a tool to collect data. The samples used in study were 400 employees of public organizations from four ASEAN countries: Thailand, Lao, Myanmar, and Cambodia. Statistics used in this research consisted of Percentage, Mean, Standard Deviation, Pearson Correlation, and Multiple Regression Analysis (MRA). The research findings showed that the attitudes of respondents about good governance, in total, were at high level. In particular, the principle of rule of law had the highest mean value, followed by the principle of accountability, economy, virtue, participation and transparency respectively. The attitudes of respondents about organizational efficiency of public companies, in total, were at high level. In particular, efficiency in personnel management had the highest mean value, followed by efficiency in task management, and efficiency in material resource management respectively. The results of analysis on a relationship between good governance and organizational efficiency of public companies showed that good governance principles and organizational efficiency of public companies were positively related at .01 level of significance with a correlation value between .496 to .789; the highest correlation was a relationship between the principle of virtue and organizational efficiency (OEF). The results of analysis on the effect of good governance on organizational efficiency of public companies with Multiple Regression Analysis in the form of Enter Method  showed that good governance principles, in total, had influence on organizational efficiency of public companies at .01 and .05 level of significance (F = 59.321, P-value = .000). Good governance principles which had the highest effect on organizational efficiency of public companies were the principle of virtue (Beta = -0.416, p< .01), followed by the principle of rule of law (Beta = .385, p  <.01), transparency (Beta = .375, p  <.01), participation (Beta = .330, p  <.05),  economy (Beta = .286, p  <.05) and accountability (Beta = .235, p  <.05)  respectively.