The Impact of Corporate Governance and Stakeholder Engagement on Organizational Resilience in Kuwaiti Islamic Financial Institutions

Abstract

Corporate governance and stakeholder engagement are vital in enhancing organizational resilience. Nevertheless, very little has been done to evaluate how they impact the organizational resilience of Kuwaiti Islamic Financial Institutions (KIFIs). Using mixed research method, the current study evaluated how the two variables (corporate governance and stakeholder engagement) impacted the resilience of KIFIs against adverse events. A sample of 120 research participants was recruited randomly from KIFIs’ employees to participate in the quantitative part of the study. Thirty-five (35) research participants from the 120 research participants were also recruited randomly to participate in the qualitative part of the study. A positive correlation that was statistically significant (r = 0.591, p < 0.5) was identified between corporate governance and organizational resilience of Kuwaiti IFIs. Similarly, a statistically significant positive correlation (r = 0.589, p < 0.5) was identified between stakeholder engagement and organizational resilience of Kuwaiti IFIs. A unit increase in corporate governance variable was found to increase the resilience of Kuwaiti IFIs by 0.42 units whereas a unit increase in stakeholder engagement increased it by 0.367 units. The findings were supported by the qualitative findings that highlighted the notable impact that corporate governance and stakeholder engagement had on organizational resilience of Kuwaiti IFIs. The study concluded that both corporate governance and stakeholder engagement had positive impact organizational resilience of Kuwaiti IFIs.

Keywords: Corporate governance, Stakeholder engagement, Organizational resilience, Kuwait, IFIs.

DOI: 10.7176/RJFA/15-3-05

Publication date:March 31^st 2024