Rethinking Organizational Performance In Public Sector Auditing
The Role Of Dynamic Capabilities And Strategic Alignment
Keywords:
Organizational Performance; Internal Audit; Organizational Performance; Public Sector; Knowledge ManagementAbstract
This study explores Organizational Performance in public sector audit institutions, emphasizing how organizations enhance effectiveness, adaptability, and accountability within the context of digital transformation. Using a Systematic Literature Review, the study synthesizes recent theoretical and empirical findings (2021–2026) to explain how Organizational Performance evolves from a static efficiency construct into a dynamic capability that integrates governance, technology, leadership, and learning processes. Drawing upon the Resource-Based View (RBV), Dynamic Capabilities Theory (DCT), Goal-Setting Theory, and Socio-Technical Systems Theory, Organizational Performance is conceptualized as an emergent capability that reflects the organization’s capacity to mobilize resources, align strategic goals, and harmonize human and technical systems to sustain public value creation. The findings reveal that high-performing institutions achieve superior outcomes when digital infrastructure, governance frameworks, and organizational culture operate synergistically. Leadership commitment and trust-based collaboration further strengthen strategic coherence and learning capacity. Knowledge Management acts as an enabling mechanism that supports Organizational Performance by transforming information and experience into actionable insight, thereby enhancing innovation, transparency, and institutional resilience. Ultimately, the study concludes that sustainable organizational performance arises from systemic alignment among technological, governance, and cognitive dimensions, creating adaptive and knowledge-informed public audit institutions.
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