Analyzing the role of good governance in improving human capital performance in the Iranian banking system

Subject Areas : Industrial Management

Ali Khalili Bandli ¹ , Farhad NezhadIrani ^{2 *} , Yahya Dadashkarimi ³ , Golamreza Rahimi ⁴

1 - PhD Candidate in Public Management, Bonab Branch, Islamic Azad University, Bonab, Iran
2 - Assistant Professor, Urmia Branch, Islamic Azad University, Urmia, Iran
3 - Assistant Professor, Faculty of Humanities, Bonab Branch, Islamic Azad University, Bonab, Iran
4 - Assistant Professor, Faculty of Humanities, Bonab Branch, Islamic Azad University, Bonab, Iran

Received: 2024-11-11 Accepted : 2025-03-01 Published : 2025-02-17

Keywords: Good governance, human capital performance, banking system,

Abstract :

In recent decades, the banking industry has faced numerous challenges, including rapid technological changes, increasing competition, and the necessity to comply with complex regulations. Amid these challenges, banks' ability to maintain and enhance human capital performance is a critical issue that can be considered a competitive advantage. Accordingly, this research aims to analyze the role of good governance in improving human capital performance within the banking system. The study is applied in purpose and descriptive-correlational in nature. Initially, factors derived from the theoretical framework were provided to 13 experts through the Delphi method, utilizing purposive sampling. Subsequently, the model components were distributed in the form of a researcher-built questionnaire to 384 managers at senior, middle, and operational levels, as well as employees of banks in Iran's West Azerbaijan, East Azerbaijan, and Ardabil provinces through simple random sampling. Ultimately, the collected data were analyzed using the Delphi technique and structural equation modeling within the SMART PLS software. The results revealed that good governance in Iranian banks consists of seven dimensions: transparency, accountability, professional development opportunities, organizational culture, risk management, innovation and continuous improvement, and motivation and job satisfaction. Additionally, the dimensions of transparency, innovation and continuous improvement, and accountability collectively explain nearly 57% of the variations in human capital performance. Therefore, focusing on good governance through transparency, innovation and continuous improvement, and accountability is considered a fundamental strategy for improving human capital performance in Iranian banks.

 

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