University Governance and Institutional Performance: Mediating Role of Faculty Satisfaction
Abstract
University governance has become a critical determinant of institutional effectiveness in higher education, particularly in an era characterized by increased accountability, competition, and performance-based evaluation systems. Effective governance structures ensure transparency, accountability, autonomy, and stakeholder participation, all of which contribute to institutional performance. This study examines the relationship between university governance and institutional performance, with a particular focus on the mediating role of faculty satisfaction. Drawing on institutional theory and organizational behavior frameworks, the study posits that governance practices significantly influence institutional outcomes through their impact on faculty satisfaction. Empirical evidence suggests that governance mechanisms such as accountability, autonomy, and transparency play a vital role in enhancing education service quality and institutional success. Furthermore, faculty satisfaction has been identified as a key predictor of organizational commitment and performance, influenced by leadership, work environment, and governance structures. A quantitative research design was employed, and data were collected from 340 faculty members across public and private universities. Structural Equation Modeling using Smart PLS was applied to test the proposed hypotheses. The findings reveal that university governance has a significant positive impact on institutional performance. Additionally, faculty satisfaction partially mediates this relationship, indicating that governance practices improve performance by enhancing faculty morale, engagement, and commitment. The study concludes that effective governance is essential for improving institutional performance, but its impact is strengthened when faculty satisfaction is considered. Universities should adopt participatory governance models and create supportive work environments to maximize performance outcomes.
