INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4292
Human Resource Management, Organizational Culture, and Good
Governance Practices: A Structural Equation Model on Service
Orientation among Government-Owned and Controlled Corporation
in Davao Region
Rolando II Raganet Abanto., Dr. Jed Panquico Acero
University of Mindanao
DOI: https://doi.org/10.51244/IJRSI.2025.120800390
Received: 06 October 2025; Accepted: 12 October 2025; Published: 18 October 2025
ABSTRACT
This study examined the determinants of service orientation among employees of Government-Owned and
Controlled Corporations (GOCCs) in the Davao Region, Philippines, with a particular focus on the interplay
between human resource practices, organizational culture, and good governance. Employing a quantitative,
descriptive-correlational research design, the study utilized validated survey instruments distributed to 400
plantilla employees from the Pag-IBIG Fund, Social Security System (SSS), and Philippine Sweepstakes
Office (PCSO). Data were analyzed using multiple regression and structural equation modeling (SEM) to
identify the best-fit model explaining the drivers of service orientation. Findings indicated that while HR
practices had a positive association with service orientation, they did not exert a statistically significant direct
effect. In contrast, good governance and organizational culture demonstrated strong influences, with
governance emerging as the most significant predictor. Model 3, identified through fit indices, highlighted the
organizational culture significantly mediating the relationship between governance and service orientation.
These findings emphasized the importance of promoting ethical governance, inclusive organizational culture,
and strategic HR interventions to strengthen public service delivery. This research advocates responsive
governance, participatory workplace environments, and competency-based training in the public sector,
emphasizing the need for strong institutions, inclusive practices, and sustainable communities to enhance
service delivery, employee commitment, and citizen trust in governance.
Keywords: Human Resource Management, Organizational Culture, Good Governance Practices, Service
Orientation, Government-Owned and Controlled Corporation
INTRODUCTION
Government agencies often deliver both physical and intangible public services inefficiently, drawing repeated
consumer complaints of slow processing, rudeness, and poor customer service (Norona, Louisse, and
Evangelista, 2020). The Civil Service Commission (2022) confirms that slow service delivery is a widespread
issue. Moreover, inefficient grievance procedures and procedural delays highlight pervasive systemic faults
(Gabriel, 2022).
Government service orientation is about prioritizing citizens' needs and satisfaction. This citizen-centered
mindset is crucial for earning trust and ensuring fair, adaptable policies in a rapidly changing world (Tian &
Christensen, 2020). Emphasizing effective service and customer focus accelerates digital transformation,
making services faster and more participatory (Idrus, Sumartono, Wartono, Suharto, and Syahriar, 2024). Key
aspects—accessibility, reliability, and public input—strengthen accountability and transparency (Latupeirissa,
Dewi, Prayana, Srikandi, Ramadiansyah, and Pramana, 2024). International organizations, such as the United
Nations (2024), advocate for technology-enabled, citizen-focused governance. Ultimately, efficient, citizen-
centered service delivery is vital to meet the evolving demands of modern democracies.
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4293
Human resources management is crucial to delivering service quality, ensuring customer satisfaction, and
driving institutional success. Papademetriou, Anastasiadou, and Papalexandris (2023) claim sustainable HRM
improves service orientation and personnel performance. Genari and Macke (2022) discovered that HRM
improves organizational commitment, engagement, and performance. Engaged public service workers did
efficient work. Radu (2023) observed that a strong corporate culture fosters the best service orientation, as
everyone follows its ideals.
The habits and practices of an organization reveal its local nature. Integrating organizational culture improved
service orientation (Schedler, Guenduez, and Frischknecht, 2019). Government agencies have several
obligations, including those of civil servants; therefore, people are chosen to fulfill them as a service to society.
Thus, Marawu, Utete, and Zhou (2023) found that government agencies are a social group with specific goals
and set boundaries that work regularly to achieve a common undertaking or system of objectives, and an
ordered social unit with specific goals and set boundaries that run continuously to achieve a set of goals. Sari
(2023) states that excellent governance enables government personnel to enhance their skills by delivering
better public services.
Most studies in human resource management, organizational culture, and good governance have explored
these variables independently rather than in conjunction with one another. This fragmented approach hinders
understanding of how these interconnected elements collectively impact organizational outcomes, particularly
in the public sector. A comprehensive framework that includes HRM, organizational culture, and governance
procedures is lacking in the literature. This research incorporated these factors into a single model. It employed
Structural Equation Modeling (SEM) to assess the combined impact of these factors on service orientation
within a Davao Region Government-Owned and Controlled Corporation (GOCC)—a broader perspective
enhanced theoretical debate and provided public administration with practical insights.
This paper aimed to determine the structural model that best fits the service orientation of GOCC employees.
Specifically, it sought to address several objectives. The first objective was to determine the level of HR
practices among GOCCs, specifically in terms of Recruitment and Selection, Compensation and Rewards, and
Training and Development. The second objective was to determine the level of organizational culture within
the GOCCs, focusing on aspects such as Participation, Respect for Individuals, Attitude toward Risk, Action
Orientation, Trust, Openness, and Power Distance. The third objective was to assess the level of good
governance practices among GOCCs in terms of Perceived Transparency, Perceived Accountability, and
Perceived Responsiveness. The fourth objective was to determine the level of service orientation of the
GOCCs in terms of internal corporations' attitudes and Behaviors, Service Competence, Service
Responsiveness, and Enhanced Service. The last objective of this study was to determine the significant
relationship between HR practice and service orientation, organizational culture and service orientation, and
good governance and service orientation, and to identify the best-fit structural model for service orientation.
On the other hand, this study employed a significance level of p < .05. The null hypothesis stated that there
was no significant relationship between human resource management, organizational culture, and good
governance practices with service orientation, nor was there a best-fit structural model for service orientation.
Figure 1. Hypothesized Model Showing the Direct Causal Relationship of
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4294
Human Resource Management, Organizational Culture, Good Governance Practices: A Structural
Equation Model on Service Orientation
HR PRACTICES
REC- Recruitment and Selection
COR- Compensation and Rewards
TAD- Training and Development
GOOD
GOVERNANCE
PRACTICES
PET- Perceived Transparency
PEA- Perceived Accountability
PER- Perceived Responsiveness
ORGANIZATIO
NAL CULTURE
PAR- Participation
RFI- Respect for the Individual
ATR- Attitude to Risk
ACO- Action Orientation
TRO- Trust
OPE- Openness
POD- Power Distance
SERVICE
ORIENTATION
IAB- Internal Corporations’
Attitudes and Behaviors
SEC-Service Competence
SER- Service Responsiveness
ENS- Enhanced Service
Figure 1 depicted the study's conceptual framework, explicitly designating human resource management,
organizational culture, and good governance practices as the exogenous variables, and clearly identifying
service orientation as the endogenous variable.
The first exogenous variable was human resource management. Its indicators were recruitment and selection,
compensation and rewards, and training and development. Recruitment and selection involve soliciting,
assessing, and hiring suitable candidates. Compensation and rewards referred to providing employees with
both financial and non-financial benefits. Training and development refer to the process of enhancing
employees' skills and knowledge to improve job performance and foster growth (Bn Aoin, 2017).
The second exogenous variable was organizational culture, with its indicators. In a positive organizational
environment, participation is vital. This culture of respect for the individual fosters a sense of egalitarianism,
ensuring that every voice is valued equally. Furthermore, members' attitudes to risk significantly influenced
the organization. A tendency to play it safe or hide mistakes can hinder innovation; in contrast, a proactive
approach encouraged growth and adaptability. In addition, action orientation is crucial, since members must
focus on attaining outcomes and jointly assume responsibility for organizational objectives. Trust among team
members was the cornerstone of cooperation, and elevated implicit trust facilitates successful teamwork.
Likewise, openness in communication is crucial. A culture that encourages sharing information and ensures the
approachability of senior members enhances transparency and strengthens relationships. Lastly, power
distance reflected the organization's hierarchy. When members avoid confrontation with superiors, it can
create barriers to communication and inhibit the free exchange of ideas, potentially stifling innovation and
growth (Ghosh & Srivastava, 2014).
The third exogenous variable was good governance practices, which included the following indicators:
Perceived Transparency refers to the client's belief that the organization operates transparently by clearly
disclosing plans, processes, progress, and performance-related information. Perceived accountability refers to
the organization being considered accountable through regular reporting on achievements, recognition of
responsibilities, adherence to treasury regulations, and proper budget usage. Perceived responsiveness refers to
an organization's responsiveness and sensitivity to public opinions, promptness in addressing requests, and
effectiveness in providing quality solutions to residents' needs.
The latent endogenous variable consisted of internal attitudes and cooperative behaviors, which were indicated
by the following factors: Internal Corporations’ Attitudes and Behaviors refer to employees willingly offering
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4295
assistance to colleagues, particularly during peak hours, and fostering teamwork. Service competence refers to
employees having a strong knowledge of the services provided, communicating clearly with customers, and
ensuring accuracy and security in transactions. Service responsiveness refers to an employee's ability to
interact with customers in a respectful and timely manner while effectively managing their workload. Service
enhancement refers to employees going beyond their duties, proactively meeting customer needs, and
encouraging improvements in service speed and attention (Frimpong & Wilson, 2005).
The Resource-Based View (RBV) paradigm, as proposed by Barney (2007), underpins this research. This
approach emphasizes that unique resources, culture, and governance methods enable a company to deliver
superior services. The VRIN test requires a resource to be valuable, rare, inimitable, and non-substitutable to
provide sustained competitive advantage, according to Barney. Schein's (1985) Organizational Culture thesis
supports this thesis by explaining how workers' beliefs, ideas, and actions impact an organization's
performance and service orientation. This theory explains why the internal environment is a valuable, non-
tangible organizational resource that significantly impacts performance and service delivery.
Human Capital Theory, as proposed by Becker (1964), posits that training and education enhance productivity
and service delivery, which aligns with your focus on human resource management methods at the GOCC.
Human Capital Theory views workers as capital that needs training and growth. The Stakeholder theory of
Freeman, Harrison, Wicks, Parmar, and Colle (2010) also suggests that stakeholder expectations may measure
successful governance in government-owned enterprises. Transparency, accountability, and ethical
management enable the organization to meet stakeholder expectations and enhance quality
This research tested the relationship between good governance, organizational culture, service orientation, and
human resource practices in government-owned corporations (GOCCs) in the Davao Region through structural
equation modeling. It conceptualized HRM as strategic management that offers competitiveness through
recruitment, compensation, and training; organizational culture as values influencing work behavior and
performance; and good governance as promoting transparency, accountability, and ethical service. Service
orientation captures GOCCs' focus on fulfilling clients' needs and enhancing customer service.
The study supports SDG 11: Sustainable Cities and Communities and SDG 16: Peace, Justice, and Strong
Institutions. Goals 11 and 16 need responsible, transparent, and inclusive institutions at all levels to foster
public confidence and ensure efficient governance. The influence of HRM, culture, and effective governance
on the service orientation of GOCCs in the Davao Region is significant. This study connected internal
organizational practices to external service outcomes using structural equation modeling. It underscores a
results-oriented organizational culture and strategically aligns human resource strategies with effective
governance to enhance the public sector's responsiveness to citizens and its service orientation. This study aids
HR professionals in comprehending organizational learning, fostering a culture that motivates public servants
to adopt new information and technology, and executing successful governance efforts inside quickly evolving
government organizations.
METHOD
The research included 400 regular workers from Pag-IBIG Fund, SSS, and PCSO in Region XI GOCCs,
chosen by stratified random selection. This study used a causal-comparative and correlational approach using
Structural Equation Modeling (SEM) to investigate the relationships among Human Resource Management
(HRM), organizational culture, good governance, and service orientation. The study, conducted in the second
semester of 2024–2025, included validated questionnaires and statistical analyses, according to ethical
standards as per UMERC Protocol No. UMERC-2025-023. Participation was optional, secret, and governed by
principles of integrity and data protection regulations.
Research Respondents
The survey included 530 regular employees, comprising 205 (38.7%) from the Pag-IBIG Fund, 289 (54.5%)
from the SSS, and 36 (6.8%) from the Davao Region's PCSO. A sample of 400 regular government
employees—172 or 43% from the Pag-IBIG Fund, 209 or 52.3% from the Social Security System, and 19 or
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4296
4.8% from the Philippine Charity Sweepstakes Office—was selected. The sample distribution closely matched
the population distribution, which means that a proportionate stratified sampling approach (with a
predetermined ratio) was employed instead of Slovin's formula. To ensure research representation and
diversity, respondents were selected from Davao Region branches and offices. Yuan and Chan (2016)
recommend a sample size of 300–400 responders for structural equation modeling, which this sample size
follows.
Stratified random sampling ensured that all regular employees had an equal chance of selection. Salkind
(2008) defines this as dividing the population into strata to ensure similarity. This approach accurately reflects
the company's service orientation.
The researcher selected responders based on specific criteria. The survey included only plantilla employees
who had worked for GOCCS agencies in Region XI for three years or more. To confirm contractual
employment, the employment records of these individuals were reviewed. All participants were selected to
ensure they had enough work experience to advise on service orientation, human resource management, and
good governance. The study excluded temporary, job order, and contractual workers. Regional XI non-
GOCCS personnel were also excluded from the study.
The research questionnaire was confidentially given to eligible respondents. Participants could leave the
survey at any moment without consequence. This structure made data collection ethical and stress-free. Data
was collected and analyzed from February 2025 to April 2025, ensuring thorough study results.
The sampling approach was optimal for this study, which aimed to identify the best structural equation model
for examining the relationship between human resource management, organizational culture, good governance,
and service orientation. Given the researcher's extensive experience in government service and research, this
study offers valuable insights into enhancing service orientation in government-owned and controlled
enterprises.
Materials and Instruments
Four instruments were used in this study: Maqsood (2017)'s The impact of human resource management on
organizational performance in Saudi Arabian enterprises, as well as scales described by Ghosh and Srivastava
(2014), Beshi and Kaur (2019), and Frimpong and Wilson (2005), which offer guidance on building reliable
and valid measures for organizational culture, public trust in local government, and service orientation. After
developing the questionnaire, experts validated it and tested its consistency and reliability. For ethical reasons,
the study was reviewed and approved by the University's Ethics Review Committee. In addition, a Turnitin
Checker verified the originality of the work to ensure academic integrity. Items were presented on a five-point
Likert scale: 5 (strongly agree), 4 (agree), 3 (moderately agree), 2 (disagree), and 1 (strongly disagree).
To interpret questionnaire scores, the study classified the independent variables—Human Resource
Management, Organizational Culture, Good Governance Practices, and Service Orientation—according to
distinct ranges. Very high scores (4.20–5.00) indicated these attributes were always present, while high levels
(3.40–4.19) suggested frequent use. Moderate (2.60–3.39), low (1.80–2.59), and very low (1.00–1.79) ranges
denote decreasing degrees of implementation, from occasional to rare or never. Building on these assessment
criteria, the structural model's goodness of fit was evaluated using standard indices, which are detailed below.
Starting with the adviser's evaluation and recommendations, the research paper improved. Quality was assured
by including expert validators' and external assessors' errors, comments, and suggestions. Five internal
validators with research skills and one external field expert reviewed the questionnaire to determine its
validity. They scored items 1–5, confirming face and content authenticity. A pilot study of 50 GOCC
respondents from other locations was conducted to examine reliability. Cronbach's Alpha values above 0.9
indicate strong instrument dependability.
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4297
Design and Procedure
A quantitative design employed causal-comparative and descriptive-correlational methods to investigate the
impact of organizational citizenship behavior, emotional intelligence, and public service orientation on
employee performance in government-owned and controlled corporations. Following Christensen, Johnson,
and Turner (2011), the descriptive-correlational technique investigated variable associations, while SEM was
used to construct the optimum job performance assessment system. SEM, or covariance structure analysis, was
chosen for its ability to investigate complicated interactions and estimate covariances among observable
variables despite strict assumptions (Byrne, 2013).
To assure accuracy, the study procedure included model design, estimation, assessment, and revision.
Alternative specs were used when models did not fit. According to Henseler (2020), SEM can handle distal
constructs, rectify measurement errors, and test complete theories simultaneously, a capability supported by
Iacobucci (2010) and Chen, Curran, Bollen, Kirby, and Paxton (2008). The research aims to determine a
statistical analysis of the data. The following statistical methods were used for each study goal. Means assessed
management, organizational culture, good governance, and service orientation, and this met 1-4 study goals.
The Pearson Product-Moment Correlation was used to determine exogenous-endogenous interactions. It met
research goal 5. SEM examined the best-fit model to ensure all parameters fit within a reasonable model. It
met research goal 6. SEM may explore complex interactions between several factors, making it suitable for our
investigation.
This research employs multiple statistical tests to assess the model's fit to the data. The value of the Chi-square
statistic should remain low to indicate model effectiveness, while the p-value needs to stay above 0.05 to
validate good data fit. The model demonstrates a good fit with the sample data if the CMIN/DF ratio remains
below 0.05. The Normative Fit Index (NFI), Comparative Fit Index (CFI), Goodness-of-Fit Index (GFI), and
Tucker-Lewis Index (TLI) should all yield values higher than 0.95 to confirm that our model fits the data well
and performs effectively. To accurately depict the population covariance matrix, the Root Mean Square Error
of Approximation (RMSEA) should remain at 0.05 or lower. Supporting evidence is provided when the p-
value is above 0.05. The set of testing standards ensures the model effectively displays the linkages between
research factors.
The research allows Davao Region GOCC workers to engage ethically without compulsion. Participants can
leave the study without penalty. The study adheres to Republic Act 10173 (Data Privacy Act of 2012), which
safeguards participants' privacy and ensures the secure disposal of their data. Additionally, all participants are
aware of the study's purpose and are free to choose whether to participate in it. The researcher selected
participants based on the study criteria and took care to prevent any potential injuries. GOCC executives and
staff have enhanced their HR practices and gained insights into corporate culture and leadership, leveraging
this knowledge to improve public services. Participants were informed about the risks and potential discomfort
associated with the data collection process. Researchers developed a risk management method and monitored
study participants.
Grammarly and Turnitin identify plagiarism and adhere to the University of Mindanao's ethical rules. The
University of Mindanao Graduate School listed the researcher and adviser as co-authors of this paper. This
research is the property of the university and cannot be used elsewhere. The researcher had no prior contact
with respondents and did not manufacture data. Pre-data collection clearances included UMERC protocol
number UMERC-2025-023 dated February 13, 2025. With authorization from the Pag-IBIG Fund, the Social
Security System, the Philippine Charity Sweepstakes offices/branches, and the appropriate authorities, accurate
and genuine information was provided. Only the researcher and adviser have publishing rights and proper
credit for data obtained via a questionnaire with explicit instructions.
The data were collected methodically by the researcher. A letter of authorization, authorized by the Dean of the
Professional Schools, was sent to the heads of Region XI (Davao Region) GOCCs to seek access to
responders. After obtaining permission, the researcher visited the Pag-IBIG Fund and Social Security System
(SSS) offices and collaborated with their human resource managers to identify qualified volunteers. Face-to-
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4298
face surveys conducted from February to April 2025 ensured a direct connection with respondents and
improved data reliability.
To verify instrument reliability, the researcher pilot-tested the instrument on 50 employees from various
GOCCs, such as Pag-IBIG Fund in Region XII, during the pre-actual survey using Cronbach's Alpha. HR
Practices (0.842), Organizational Culture (0.920), Good Governance Practices (0.905), and Service Orientation
(0.947) have good to outstanding Cronbach's Alpha reliability. These findings demonstrate the instrument's
data collection dependability. The researcher created a validated survey questionnaire with clear instructions
and simple language to aid the survey. After participants give their assent, the researcher explains the study's
aim and protocols and collects consent forms for the UMPS' DPA Dean. After validating questionnaire
completion, results were meticulously encoded into an Excel template. The encoded data were examined to
achieve the study's goals, yielding findings and recommendations. The data analysis provided valuable insights
and direction that supported the study's aims.
RESULTS AND DISCUSSION
This section presents and discusses the collected and evaluated data on HR practices, organizational culture,
good governance practices, and employee service orientation in government-owned and controlled
corporations.
Human Resources Practices
Table 1 shows that government-owned and controlled enterprises (GOCCs) have good HR practices, indicating
effective HR strategy implementation throughout the institutions reviewed. In particular, recruiting has the
greatest mean rating and the highest descriptive level. Furthermore, selected Government-Owned and
Controlled Corporations (GOCCs) have high to extremely high mean scores on the HR variables. For instance,
the mean of 4.24 with a standard deviation of 0.54 indicates that respondents believe their institutions' HR
operations are well-developed and successful.
Table 1 Level of HR Practices in Government-Owned and Controlled Corporations
SD
Mean
Descriptive Level
0.48
4.46
Very High
0.66
4.12
High
0.72
4.14
High
0.54
4.24
Very High
Recruitment had a mean of 4.46 and a standard deviation of 0.48, making it the most descriptive indicator of
the three dimensions. Merit-based hiring, openness, and solid workforce planning may explain strong
institutional performance in attracting and selecting skilled workers. Well-structured recruitment strategies
enhance organizational performance by aligning employee abilities with job demands. Strategic and merit-
based recruitment strategies enhance employee capability and organizational commitment, while also adhering
to civil service and government laws (Vanka, Rao, Singh, and Pulaparthi, 2021). While compensation and
incentives received the lowest mean score of 4.12 and a standard deviation of 0.66, this was still a highly
descriptive result. In this lower grade, compensation systems are sound, yet monetary and non-monetary
awards may be insufficient, competitive, or unjust. Employee motivation, retention, and happiness depend on
fair pay. Compensation and incentives are crucial for attracting and retaining talent, particularly in government
organizations that face significant competition from the private sector. Fair, performance-based compensation
boosts morale and motivation (Olson, 2025). The Compensation and Position Classification System (CPCS)
ensure market-competitive pay structures in Philippine GOCCs. Organized training boosts staff creativity,
adaptability, and efficiency. Training and development had a high mean of 4.14 and a standard deviation of
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4299
0.72, indicating that professional growth opportunities were available. In contrast, capacity-building programs
may be more relevant, accessible, and frequent. Public sector organizations are increasingly recognizing the
need for professional development (Abbas, Ekowati, Suhariadi, and Anwar, 2022).
These findings underscore the need to strengthen recruitment and to enhance compensation and incentive
systems deliberately. Training and growth can help GOCCs promote learning and development. High HR
practices demonstrate that these institutions are well-positioned to establish a service-oriented staff, which is
crucial to public sector performance and effective governance. Addressing the lowest-rated areas may improve
HRM and promote company goals and public service excellence.
Organizational Culture
Table 2 shows that government-owned and controlled enterprises have a highly descriptive organizational
culture. This table suggests that GOCCs maintain a positive corporate culture of shared values, trust, and
teamwork. Government-owned and controlled corporations (GOCC) have a mean organizational culture of
4.35 and a standard deviation of 0.49, with extraordinarily high values across all factors. Workers view their
workplace as helpful, inclusive, and governance and performance-friendly. High scores across several
categories show that these firms foster workplace collaboration, dignity, trust, and responsiveness.
Table 2 Level of Organizational Culture in Government-Owned and Controlled Corporations
Indicators
SD
Mean
Descriptive Level
Participation
0.62
4.26
Very High
Respect for the Individual
0.56
4.50
Very High
Attitude to Risk
0.49
4.32
Very High
Action Orientation
0.62
4.22
Very High
Trust
0.57
4.36
Very High
Openness
0.66
4.26
Very High
Power Distance
0.61
4.50
Very High
Overall
0.49
4.35
Very High
Organizational culture impacts employee behavior, motivation, and production (Belias, Rossidis, and
Papademetriou, 2024). Ciepley (2023) stated that hierarchical structures are fair and civilized in the workplace.
"Respect for the Individual" and "Power Distance" received the highest mean scores of 4.50, with standard
deviations of 0.56 and 0.61, respectively. These values demonstrate that workers are valued and treated
equally, regardless of their status. With a high score, a low power distance may indicate flattened
organizational structures that promote inclusiveness, shared leadership, and mutual respect between
management and staff: participatory decision-making and open discussion foster organizational cohesion and
engagement. Although "Action Orientation" received the lowest mean score of 4.22 with a standard deviation
of 0.62, it was still quite descriptive. GOCCs are proactive and responsive, yet a strategic aim may take longer
to implement. High engagement increases employee commitment and organizational effectiveness (Boselie,
2024). These traits are essential for innovation, employee engagement, and flexible leadership in complex and
evolving government institutions (Demir, 2021). Administrative hurdles, coordination issues, and risk aversion
may hinder implementation. Though powerful, this dimension can help public institutions be more agile and
effective. Participation and action orientation were also highly rated, indicating a culture that involves workers
in decision-making and prioritizes timely, results-oriented operations (Chelangat, 2022).
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4300
Results reveal that regional GOCCs possess a strong organizational culture that empowers, diversifies, and
fosters trust among employees, which is vital to effective governance and public service. High ratings in
"Respect for the Individual" and "Power Distance" suggest ethical and fair organizational dynamics. The lower
"Action Orientation" score reflects improved execution and lower procedural lethargy. This proactive and
participatory approach enhances organizational agility and responsiveness (Tennin, 2023). Public sector
organizations have emphasized the importance of a values-based culture for achieving institutional objectives
and enhancing public service performance (Taylor, 2021). In complicated, fast-paced governance, an agile
culture with democratic and trust-based principles may increase institutional responsiveness. Action
orientation through capacity training, decision-making autonomy, and adaptive leadership may enable GOCCs
to meet the changing needs of citizens and implement public sector innovations and service-oriented
improvements.
Good Governance Practices
Table 3 presents the governance procedures of government-owned and controlled enterprises, demonstrating
high descriptive power across all parameters. The findings revealed that a strong institutional framework
supported openness, accountability, and responsiveness across agencies. Government-Owned and Controlled
Corporations (GOCCs) have excellent governance across all criteria, with a mean score of 4.41 and a standard
deviation of 0.49. The institution's dedication to transparency, accountability, and responsiveness supports
ethical public sector governance. Of the three factors, responsiveness received the highest mean score of 4.49,
with a standard deviation of 0.51, indicating that GOCCs are responsive to stakeholder needs. These
institutions stress speedy and appropriate service, open communication, and meeting public expectations,
earning a high score. Good governance requires responsiveness to create trust and a legitimate government.
Table 3 Level of Good Governance Practices in Government-Owned and Controlled Corporations
SD
Mean
Descriptive Level
0.59
4.34
Very High
0.55
4.41
Very High
0.51
4.49
Very High
0.49
4.41
Very High
Despite its low mean score of 4.34 and a standard deviation of 0.59, perceived transparency was described as
descriptive. This lower score may reflect difficulties in decision-making, financial transparency, and policy
implementation, including issues related to clarity, accessibility, and dissemination of information.
Transparency is a strength, but it is also the lowest-rated trait; therefore, it requires improvement in open data,
public communication, and stakeholder engagement.
Stakeholders assessed GOCCs as proactive and successful in meeting their needs, as perceived responsiveness
exceeded all other categories, characterizing a public service culture that prioritizes swift and appropriate
actions, thereby boosting government credibility (Neo, Grimmelikhuijsen, and Tummers, 2022). Also highly
scored was perceived responsibility, indicating well-established accountability and performance monitoring
procedures. Consistent performance audits, public reporting, and staff ethical standards supported responsible
governance (Amalia, 2023). Perceived transparency was lower than the other two variables, but still
descriptive. Public disclosure policies promote integrity, decrease corruption, and increase knowledge and
communication (Jannah, Sipahutar, and Hariyati, 2020). They follow past research showing that
institutionalizing transparency, accountability, and responsiveness improves public trust, operational
efficiency, and the quality of government services (Xanthopoulou & Plimakis, 2021). Governance rules enable
GOCCs to foster a culture of institutional integrity and citizen-centered service delivery.
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4301
As seen by their high results across all dimensions, local GOCCs have institutionalized good governance and
become trustworthy and responsive public sector authorities. The high perceived responsiveness score
indicates that institutional behaviors match public expectations, which is essential for service-oriented
governance. Poor perceived transparency needs improving. Through increased information availability, citizen
engagement platforms, and institutional openness, transparency may increase trust and accountability.
Democracy is promoted while inefficiency, corruption, and public disengagement are reduced. These findings
underscore the need to sustain a responsive, responsible, and transparent governmental ethos. Governance
excellence and long-term public sector institutional credibility and effectiveness depend on improving the
weakest linkages, even when performance is strong.
Service Orientation
Table 4 shows that staff at government-owned and controlled enterprises (GOCCs) are always service-
oriented. All indicators showed great devotion to outstanding public service and consistent views among staff,
with mean scores closely centered around a very high range and relatively low standard deviations. With a
mean of 4.41 and a standard deviation of 0.49, Government-Owned and Controlled Corporations (GOCCs)
have a very high service orientation across all parameters. The personnel of these organizations value timely,
quality, and citizen-centered service. Service orientation reflects public sector performance and the capacity of
staff and institutions to meet stakeholder expectations. At 4.45 with a standard deviation of 0.51, Service
Competence was the highest-rated of the four categories. GOCC's technical and professional talents allow
effective service delivery. Staff with high service competence, knowledge, abilities, and attitude can meet
organizational and public demands, which in turn improves these institutions' training, recruitment, and
performance management. Service competence was the most significant factor, indicating that GOCC workers
are confident in their abilities and possess the necessary knowledge, skills, and professionalism to perform
their jobs effectively. A workforce ready to meet public service demands was found (Cybellium, 2024)
Level of Service Orientation in Government-Owned and Controlled Corporations
SD
Mean
Descriptive Level
0.55
4.39
Very High
0.51
4.45
Very High
0.52
4.38
Very High
0.62
4.44
Very High
0.49
4.41
Very High
Service Responsiveness had the lowest mean score of 4.38 and a standard deviation of 0.52, yet it was
descriptive. GOCCs typically meet stakeholder demands; however, service delivery may be faster, more
flexible, or more personalized. Budget constraints, procedural rigidity, and bureaucratic delays may slow
public sector action. However, the high ranking indicates a strong commitment to public feedback and
consumer interaction. These findings supported public sector performance, showing how employee service-
oriented principles affect citizen satisfaction, organizational effectiveness, and governance outcomes (Ashikali,
Groeneveld, and Ritz, 2021). Thus, it validated the premise that informed, responsive, and motivated public
servants improve public administration (Farazmand, 2023).
The results show that GOCCs excel at creating a service-oriented culture with service competency and
improved services as institutional advantages. High service orientation boosts government credibility, trust,
and satisfaction. The somewhat lower service responsiveness score highlights the need for organizational
agility, reducing bureaucratic red tape, and delivering citizen-responsive services. GOCCs should invest in
people development, feedback systems, and service procedures to ensure timely public services and a service-
oriented approach. Internal attitudes, collaboration, actions, and service responsiveness were all relatively
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4302
high, indicating that staff members are very positive about their jobs, get along well with coworkers, and
genuinely care about public concerns. These traits boost service users' confidence and happiness (Shanka &
Buvik, 2019). Very high service ratings showed that personnel are diligent in improving service quality.
Corporate culture values originality, efficiency, and agility to fulfill needs (Vaughan & Arsneault, 2021). Since
this approach is established in organizational culture, institutional policies and leadership may support it
(Guah, 2021). Public sector service excellence emphasizes not only the services provided but also how they are
delivered. GOCCs may offer a contemporary, responsive, and citizen-centric governance model that aligns
with global best practices and fosters public sector growth, as demonstrated by their strong performance across
all criteria.
Significance of the Relationship between HR Practices and Service Orientation
Table 5.1 illustrates a strong correlation between HR processes and the service orientation of GOCC workers.
Recruitment, salary and incentives, and training and development have a significant impact on internal
attitudes, corporate behavior, service competence, responsiveness, and overall service quality. HR practices
and service orientation among Government-Owned and Controlled Corporation employees were positively
correlated across all variables, with a probability value smaller than 01. HR practices were highly correlated
with service orientation, with a correlation coefficient of 0.601 and a likelihood ratio value of.000 Training and
development showed the most significant correlation.571 overall and.630 with service competence,
demonstrating its relevance in service outcomes and personnel growth. While still significant, recruiting
showed the lowest correlation with service.434, suggesting that onboarding and integration are more essential.
Table 5.1 Significance of the Relationship between HR Practices and Service Orientation among Employees of
GOCCs
HR Practices
Service Orientation
Internal Attitudes and
Corporate Behaviors
Service
Competence
Service
Responsiveness
Enhanced
Service
Overall
Recruitment
.549
**
.000
.569
**
.000
.523
**
.000
.434
**
.000
.508
**
.000
Compensation
and Rewards
.523
**
.000
.530
**
.000
.485
**
.000
.444
**
.000
.479
**
.000
Training and
Development
.601
**
.000
.630
**
.000
.594
**
.000
.510
**
.000
.571
**
.000
Overall
.644
**
.000
.666
**
.000
.618
**
.000
.538
**
.000
.601
**
.000
Governance-wise, these findings support the strategic role of HR in public sector development. Strategic HR
practices that emphasize capacity development, incentives, and performance systems promote a service-
oriented approach (Jo, Chadwick, and Han, 2023). We found that recruitment alone cannot maintain service
excellence without infrastructure. All connections were statistically significant with a probability value of .000,
rejecting the null hypothesis that HR processes do not affect service orientation. HR strategies, including
training, incentives, and development, impact the service-oriented behavior of GOCC. These practices may
improve staff responsiveness and public confidence in institutions (Virani, A., and Van Der Wal, Z., 2023).
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4303
Significance of the Relationship between Organizational Culture and Service Orientation
Table 5.2 indicates that the GOCC's organizational culture is closely tied to its service orientation.
Organizational culture—encompassing participation, respect for individuals, risk attitude, action orientation,
trust, openness, and power distance—correlates strongly with service orientation indicators, such as internal
attitudes and corporate behaviors, service competence, responsiveness, and improved service delivery. GOCC
staff service orientation and organizational culture were positively linked, with a probability value of less than
0.01. Service competence was strongest (.782), and organizational culture was closely related to service
orientation (.715).
Participation had a significant influence on internal attitudes (.703) and service competence (.682),
demonstrating how inclusive and engaged workplaces promote service-oriented behavior. Denison and Mishra
(1995) claim participatory cultures improve employee loyalty and service. Personal regard had the lowest
correlation coefficient with enhanced service.443, indicating that interpersonal respect is essential but may
require empowerment, feedback, and performance-based methods to improve service. These findings
demonstrate that organizational culture—particularly trust, engagement, openness, and action orientation—
significantly impacts workers' service-related behaviors. Coordination, initiative, and shared responsibility
appear to be the most critical cultural variables (Morales-Huamán, Medina-Valderrama, Valencia-Arias,
Vasquez-Coronado, Valencia, and Delgado, 2023).
Table 5.2 Significance of the Relationship between Organizational Culture and Service Orientation in
Government-Owned and Controlled Corporations
Organizational
Culture
Service Orientation
Internal Attitudes and
Corporate Behaviors
Service
Competence
Service
Responsiveness
Enhanced
Service
Overall
Participation
.703
**
.000
.682
**
.000
.632
**
.000
.595
**
.000
.646
**
.000
Respect for the
Individual
.576
**
.000
.589
**
.000
.506
**
.000
.443
**
.000
.527
**
.000
Attitude to Risk
.626
**
.000
.631
**
.000
.596
**
.000
.503
**
.000
.574
**
.000
Action Orientation
.651
**
.000
.661
**
.000
.612
**
.000
.491
**
.000
.582
**
.000
Trust
.698
**
.000
.683
**
.000
.628
**
.000
.546
**
.000
.648
**
.000
Openness
.641
**
.000
.633
**
.000
.540
**
.000
.528
**
.000
.570
**
.000
Power Distance
.597
**
.000
.627
**
.000
.569
**
.000
.464
**
.000
.564
**
.000
Overall
.781
**
.000
.782
**
.000
.710
**
.000
.623
**
.000
.715
**
.000
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4304
Hypothesis testing revealed statistically significant correlations between organizational culture and service
orientation, with correlation coefficients ranging from 0.443 to 0.782 and a p-value of 0.000. Therefore, the
alternative hypothesis was supported, rejecting the null hypothesis. A strong and participatory organizational
culture enhances the service orientation of GOCC. Integrating cultural aspects into institutional frameworks
enables public employees to be more informed, responsive, and citizen-centered, ultimately improving service
performance and fostering public trust. Hypothesis testing revealed statistically significant correlations
between organizational culture and service orientation, with correlation coefficients ranging from 0.443 to
0.782 and probability values of 0.000. Thus, the alternative hypothesis defeated the null hypothesis. A strong
and participatory organizational culture enhances the service orientation of GOCC. Integrating cultural aspects
into institutional frameworks fosters a more competent, responsive, and citizen-centered public workforce,
thereby improving service delivery and public trust.
Significance of the Relationship between Good Governance Practices and Service Orientation
Table 5.3 showed a strong and statistically significant positive link between good governance and service
orientation in GOCCs. Positive governance—characterized by perceived transparency, accountability, and
responsiveness—correlates strongly with service orientation dimensions, including internal attitudes and
corporate behaviors, service competence, responsiveness, and improved service delivery. All correlations in
public organizations are significant (p < .000), rejecting the null hypothesis and indicating that good
governance has a positive impact on service orientation.
Table 5.3 Significance of the Relationship between Good Governance Practices and Service Orientation in
Government-Owned and Controlled Corporations
Good Governance
Practices
Service Orientation
Internal Attitudes and
Corporate Behaviors
Service
Competence
Service
Responsiveness
Enhanced
Service
Overall
Perceived Transparency
.728
**
.000
.742
**
.000
.647
**
.000
.568
**
.000
.663
**
.000
Perceived
Accountability
.678
**
.000
.707
**
.000
.621
**
.000
.542
**
.000
.630
**
.000
Perceived
Responsiveness
.705
**
.000
.713
**
.000
.667
**
.000
.549
**
.000
.660
**
.000
Overall
.789
**
.000
.808
**
.000
.722
**
.000
.620
**
.000
.730
**
.000
The research found statistically significant and positive correlations between excellent governance practices
and all characteristics of service orientation among GOC personnel, with a probability value of less than 0.01.
The strongest correlation between good governance and service competence was 0.808, indicating that
transparent, accountable, and responsive governance enhances employees' ability to deliver competent and
effective service. Perceived transparency promoted clarity, trust, and professional conduct in the workplace,
with the highest individual correlations observed with service competence (r = 0.742) and internal attitudes (r
= 0.728). However, the lowest correlation between perceived accountability and enhanced service was.542,
suggesting that while accountability is essential, it may need reinforcement through incentives, recognition, or
feedback systems to encourage proactive service innovation, as supported by Ghimpau (2020).
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4305
These results support the evidence showing that effective governance boosts public trust and institutional
performance (Poniatowicz, Dziemianowicz, and Kargol-Wasiluk, 2020). The alternative hypothesis overruled
the null hypothesis that excellent governance and service orientation have no meaningful association, given
consistently significant correlations with correlation coefficients ranging from 0.542 to 0.808 and a probability
value of 0.000. The service orientation of GOCC personnel is shaped by strong governance, particularly
openness and responsiveness, which enhances institutional integrity and fosters a competent, motivated, and
citizen-centered public workforce.
Significance of the Influence of HR Practices, Organizational Culture, and Good Governance Practices
on Service Orientation in Government-Owned and Controlled Corporations
Table 6 illustrates the impact of human resource practices, organizational culture, and good governance on
service orientation in government-owned and controlled firms. Organizational culture and good governance
practices had a significant impact on service orientation, with probability values of 0.000, while human
resource practices had no statistically significant effect.
Table 6 Significance of the Influence of HR Practices, Organizational Culture, and Good Governance Practices
on Service Orientation in Government-Owned and Controlled Corporations
Service Orientation
(Variables)
B
β
t
Sig.
Constant
.663
3.931
.000
HR Practices
.045
.045
.829
.407
Organizational Culture
.333
.299
3.975
.000
Good Governance
.476
.435
6.154
.000
R
.747
R
2
.558
∆R
.555
F
166.747
ρ
.000
Human Resource (HR) procedures may not directly affect employee responsibility or organizational
performance. HR systems prioritize compliance, conformity, and administrative control above strategic
alignment with institutional objectives. Public sector HR is generally seen as procedural rather than
developmental by workers due to bureaucratic structures (Reina and Scarozza, 2020). HR practices may
indirectly impact leadership, corporate culture, and engagement. Thus, public sector HR must move from
compliance to strategy, combining human capital development with institutional goals to promote
accountability, productivity, and innovation (Boxall, and Purcell, 2022).
A beta value of 0.299 indicated that a strong company culture fosters service-oriented behavior among
workers. This result showed that the values, norms, and work environment of GOCCs have a substantial
impact on service quality. Prior studies have shown that a unified organizational culture improves staff
engagement and service quality (Nzuva & Purity, 2022). Effective governance processes had the most
significant beneficial influence on service orientation, with a beta of 0.435. This finding demonstrated how a
transparent, responsible, and responsive government fosters service-oriented behavior. This finding also
confirms the growing body of research indicating that effective governance practices—such as transparency
and accountability—build trust and motivate personnel to work together toward public service objectives
(Masenya & Mthombeni, 2023).
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4306
Organizational culture and effective governance explained 55.8% of the variance in service orientation, as
indicated by the model's R-squared value of 0.558. A highly significant model, with an F-value of 166.747 and
a p-value of 0.000, demonstrated that these variables have a substantial impact on enhancing service
orientation in GOCCs. HR rules may not directly affect service orientation, but corporate culture and
governance structures may.
The indirect relationship between HR practices and service orientation is strengthened by business culture.
According to Barney (2007)'s Resource-Based View (RBV), HR systems and organizational culture are VRIN
resources that maintain competitive advantage. HR approaches that promote employee competence,
motivation, and value alignment create a strong culture that encourages service-oriented behavior, resulting in
excellent service delivery. This supports RBV's belief that culture and governance mechanisms drive
organizational performance, with HR practices improving culture and mediating their impact on service
orientation. This mediation process supports Schein's Organizational Culture theory, which emphasizes shared
ideas and norms as collective behavior drivers. Culture makes HR activities ethical and service-driven, tying
human capital to performance. Following Human Capital Theory, staff training develops this cultural base,
while Stakeholder Theory governance for transparency and confidence in GOCCs. These concepts describe
how HR practices, organizational culture, and governance principles improve public sector service orientation
and effectiveness.
Best Fit Model of Service Orientation
Table 7 shows that models 2 and 3 showed a substantial impact modification. Both models demonstrated that
human resource practices and organizational culture were either irrelevant or even detrimental, suggesting that
these elements may become less effective or even harmful in specific organizational contexts. However, good
governance remained consistently significant and favorably impactful, with coefficients of 1.315 in Model 2
and 0.669 in Model 3. This trend underscores the enduring importance of governance in achieving
performance results, even when other organizational supports are compromised. Excellent governance was the
most accurate predictor, demonstrating that strong governance frameworks may balance human resources and
cultural shortcomings, assuring service orientation and organizational integrity.
This portion evaluates service orientation in government-owned and controlled firms using three models.
Models were assessed using CMIN/DF, GFI, CFI, NFI, TLI, RMSEA, and P-close fit indices. CMIN/DF must
be less than 2, P-close must be above 0.05, GFI, CFI, NFI, and TLI must exceed 0.95, and RMSEA must be
below 0.05. Comparing model fit values to these criteria helped us choose the best model to represent the data.
Model 1 failed most checks due to its 11.807 CMIN/DF ratio, indicating a poor match. The goodness-of-fit
index, comparative fit index, normed fit index, and Tucker–Lewis index were all below 0.95, indicating poor
model fit. The 0.165 root mean square error of approximation value indicated significant misspecification,
which was supported by a probability of a tight match of 0.000. Because of these poor fit criteria, Model 1 was
discarded.
Despite failing all standards, Model 2 improved. The chi-square divided by degrees of freedom ratio of 3.540
exceeded the acceptable 2. The likelihood of a close fit value of 0.000 proved an insufficient fit, while the
goodness of fit index of 0.895 and root mean square error of approximation of 0.080 suggested deficiencies.
However, Model 2 performed better than Model 1, with comparative fit indexes of 0.950, 0.932, and 0.940, all
of which were closer to or above 0.95.
Table 7 Summary of Goodness of Fit Measures of the Three Generated Models
Model
P-value
(>0.05)
CMIN / DF
(0<value<2)
GFI
(>0.95)
CFI
(>0.95)
NFI
(>0.95)
TLI
(>0.95)
RMSEA
(<0.05)
P-close
(>0.05)
1
.000
11.807
.755
.783
.768
.745
.165
.000
2
.000
3.540
.895
.950
.932
.940
.080
.000
3
.107
1.268
.979
.997
.987
.995
.026
.987
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4307
Legend: CMIN/DF – Chi Square/Degrees of Freedom NFI –Normed Fit Index
GFI – Goodness of Fit Index TLI -Tucker-Lewis Index
RMSEA – Root Mean Square of Error Approximation CFI – Comparative Fit Index
Model 3 met all the main goodness-of-fit standards, making it the most fitting model. A robust model-data fit
was shown by its 1.268 CMIN/DF ratio, which was within the acceptable range of 0 to 2. The goodness-of-fit
index (GFI = 0.979), comparative fit index (CFI = 0.997), normed fit index (NFI = 0.987), and Tucker–Lewis
index (TLI = 0.995) all surpassed the 0.95 benchmark, meeting the primary criterion for an excellent fit. The
model's root mean square error of approximation (RMSEA = 0.026) was far below the 0.05 criterion, and its P-
value (.987) indicated a high likelihood of a close fit, validating its robustness and parsimony. When compared
to Models 1 and 2, Model 3 excels. Both prior models had significant chi-square values (p = .000), CMIN/DF
ratios exceeding the permissible limit (11.807 and 3.540), and inconsistent fit indices, suggesting poor data
alignment. Model 3, however, overcame these restrictions and produced the most accurate and theoretically
relevant portrayal of excellent governance, corporate culture, and service orientation. These findings make
Model 3 the most suitable model for understanding service orientation in government-owned and controlled
enterprises, providing a consistent and reliable foundation for practical applications and future studies.
Regression Weights of the 3 Generated Models
In Table 8, the regression weights showed how human resource practices, organizational culture, and good
governance affected an unnamed endogenous variable, presumably service orientation or a similar
performance component. Three factors were statistically significant and positively linked with the result in
Model 1. Good governance was the most influential factor, with a standardized coefficient of 0.527 at the
highest level of significance, followed by organizational culture, with a coefficient of 0.389, and human
resource practices, with a coefficient of 0.110. This theory suggests that adequate human resources, culture,
and governance mechanisms enhance organizational performance and service outcomes.
Table 8 Regression Weights of the 3 Generated Models
Exogenous Variables to Endogenous Variables
Model
HR Practices
Organizational Culture
Good Governance
1
.110**
.389***
.527***
2
-.060
NS
-.414
NS
1.315*
3
-.026
NS
-.235
NS
.669
***
P*<0.05
P**<0.01
P***=0.000
Table 8 showed that Model 1 best suited the Service Orientation framework because it stressed a
comprehensive and balanced influence of all three external factors. Good governance had a significant impact
on all models. Still, Model 1's substantial coefficients for HR Practices and Organizational Culture indicated
that a well-rounded organizational approach—based on strategic HR management, a strong cultural
foundation, and effective governance practices—was most effective in driving service-oriented behaviors in
government-owned and controlled corporations.
However, Models 2 and 3 showed a considerable impact modification. In all models, human resource practices
and organizational culture were found to be irrelevant or even detrimental, suggesting that these characteristics
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4308
may become ineffective or even destructive in specific organizational contexts. Good governance, however,
remained highly significant and favorably impactful, with standardized coefficients of 1.315 in Model 2 and
0.669 in Model 3. This trend highlighted the government's persistent role in performance outcomes, especially
when other organizational supports were lacking or dysfunctional. Good governance was the most reliable
predictor; thus, strong governance frameworks may counterbalance HR and cultural weaknesses, ensuring
service orientation and organizational integrity.
Legend:
HR
PRACTICES
REC- Recruitment and
Selection
COM-Compensation and
Rewards
GOOD
GOVERNANC
E PRACTICES
PET- Perceived Transparency
PEA- Perceived Accountability
PER- Perceived Responsiveness
ORGANIZAT
IONAL
CULTURE
PAR- Participation
ATR- Attitude to Risk
ACO- Action Orientation
TRO- Trust and Openness
PD- Power Distance
SERVICE
ORIENTATIO
N
IAB- Internal Corporations’ Attitudes
and Behaviors
SEC-Service Competence
SER- Service Responsiveness
ENS- Enhanced Service
Figure 2: Best Fit Model in Standard Solution
Figure 2 illustrates the interaction among HR practices, company culture, good governance, and service
orientation using a structural equation model. Recruitment and selection [REC] and compensation and
incentives [COR] shaped organizational culture, as shown in the model. This result affects HR practices by
influencing good governance and service orientation. In particular, organizational culture—formed by
participation (PAR), attitude to risk (ATR), action orientation (ACO), trust and openness (TRO), and power
distance (PD)—mediated the transfer of influence from HR systems to desirable organizational results.
The model demonstrated the direct and significant impact of good governance practices—perceived
responsiveness (PER), perceived transparency (PET), and perceived accountability (PEA)—on service
orientation, which encompasses service competency (SEC), responsiveness (SER), enhanced service (ENS),
and internal attitudes and behaviors. With normalized coefficients of 0.87 and 0.67, the relationships between
organizational culture and good governance, as well as between good governance and service orientation, were
the model's strongest links. Culture and governance influence public service delivery, according to these
findings. They also indicate that improving governance values enables the recruitment of talent, the
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4309
implementation of effective incentive systems, and the development of participatory work cultures, all of
which can indirectly enhance service orientation.
An agency fostered an open and participatory culture by enhancing its recruitment process and performance
recognition (Garrick, Johnson, and Arendt, 2024). This culture fosters transparency and accountability,
enabling personnel to provide excellent customer service (Wiswadas, Sobri, Alfatih, and Alamsyah, 2023).
Table 8 shows that effective governance is the key predictor of service orientation in all models, supporting
this structural framework. Internal accountability and transparency policies boost public trust and service
excellence. This approach has shown the necessity of a strong governance backbone in strengthening
government agency service orientation with effective organizational culture and HR practices.
CONCLUSION AND RECOMMENDATION
The study revealed that HR practices, organizational culture, and governance collectively accounted for a
substantial portion of the variance in service orientation among GOCC employees in the Davao Region, with
organizational culture and governance emerging as the most influential predictors. However, the indirect yet
meaningful role of HR policies highlights the need to align recruitment, training, and rewards with cultural and
governance values to sustain long-term service excellence. From procedural to strategic, HR must improve
accountability and creativity. Despite the model's strong explanatory power, some variance remains
unexplained, underscoring the importance of exploring additional factors, such as digital transformation,
leadership styles, and employee well-being, in future research.
The causal model of service orientation highlights the crucial role of organizational culture and governance in
shaping responsive, transparent, and citizen-centered services. By embedding participatory values and
accountability into institutional frameworks, GOCCs not only strengthen employee motivation and
competence but also enhance public trust and legitimacy. This research demonstrates that organizational
culture significantly mediates the relationship between good governance and service orientation. Effective
public service delivery requires competent governance, but organizational culture develops, supports, and
maintains service excellence. This mediating function helps explain how governance improvements can
enhance service results through institutional cultural alignment. It suggests that government entities establish
governance frameworks and encourage service-oriented principles, attitudes, and behaviors. Organizational
performance and public trust improve when innovations become structural and behavioral. This research
contributes to ongoing public administration reforms by offering a model that integrates people, culture, and
governance as interdependent drivers of institutional effectiveness.
The findings further resonate with the United Nations Sustainable Development Goals (SDG), particularly
SDG 16: Peace, Justice, and Strong Institutions, and SDG 11: Sustainable Cities and Communities. By
prioritizing transparency, accountability, and inclusiveness, GOCCs can foster resilience against bureaucratic
inefficiencies, enhance institutional responsiveness, and promote citizen-centered governance that directly
supports sustainable and livable communities. Strengthening public institutions in this way contributes not
only to good governance but also to urban and regional development that values accessibility, equity, and
social cohesion.
GOCCS must formalize Model 3—the best-fit model identified in this study—as a structural guide for
embedding service orientation across policies and practices. This research shows that organizational culture
mediates significantly the good governance and service orientation. Governance reforms should prioritize
transparency and responsiveness, while organizational culture initiatives should emphasize inclusivity, trust,
and collaboration. At the same time, HR strategies must address the relatively lower mean scores observed in
compensation and rewards, with a total mean of 4.12, and training and development, with a total mean of 4.14,
by adopting more competitive, merit-based pay systems and providing comprehensive learning programs
aligned with service delivery goals. Likewise, attention should be directed toward organizational culture
dimensions with comparatively lower ratings, such as action orientation (with a total mean of 4.22) and
openness (with a total mean of 4.26), by fostering agile decision-making and strengthening transparent
communication channels. Finally, improvements in service responsiveness with a total mean of 4.38 are
essential to ensure that client concerns are addressed promptly and effectively. Establishing continuous
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4310
monitoring mechanisms through employee feedback systems and citizen satisfaction surveys will make these
reforms adaptive, evidence-based, and aligned with the evolving demands of public service.
REFERENCES
1. Abbas, A., Ekowati, D., Suhariadi, F., & Anwar, A. (2022). Human Capital Creation: a collective
psychological, social, organizational, and religious perspective. Journal of Religion and Health, 63(3),
2168–2200. https://doi.org/10.1007/s10943-022-01665-8
2. Addis, Y. (2019). The Effect of Human Resource Management Practice on Perceived Employee
Performance: The Case of Ministry of Trade and Industry, Ethiopia By: Yeshihareg Addis ID
GSE/8511/09 Advisor: Solomon Markos (PhD.) A thesis submitted to the school of graduate studies of
Addis Ababa University in Partial Fulfillment of the requirements for the degree of MA in Human
Resource Management Jun 2019Addis Ababa, Ethiopia. Scribd.
https://www.scribd.com/document/579304450/Yeshihareg-Addis
3. Alfansi, L., Ferry, T., Atmaja, Fachri, E., Saputra, & Saputra, F. (2022). The Impact of Service
Orientation on Organizational Performance in Public Sectors: Empirical Evidence from Indonesia.
Ferry Tema ATMAJA, Fachri Eka SAPUTRA / Journal of Asian Finance, 9(5), 345-0354.
https://doi.org/10.13106/jafeb.2022.vol9.no5.0345
4. Amalia, M. M. (2023). Enhancing accountability and transparency in the public sector: A
Comprehensive review of Public sector accounting practices. The ES Accounting and Finance, 1(03),
160–168. https://doi.org/10.58812/esaf.v1i03.105
5. Ashikali, T., Groeneveld, S., & Ritz, A. (2021). Managing for public service performance. In Oxford
University Press eBooks. https://doi.org/10.1093/oso/9780192893420.001.0001
6. Barney, J. B. (2007). Resource-based Theory: Creating and Sustaining Competitive Advantage. Oxford
University Press.
7. Becker, G. S. (1964). Human capital: a theoretical and empirical analysis, with special reference to
education. The University of Chicago Press.
8. Belias, D., Rossidis, I., & Papademetriou, C. (2024). Organizational behavior and human resource
management for complex work environments. IGI Global.
9. Bn Aoin, H. M., 140005096. (2017). Impact of human resource management on organizational
performance within firms in Saudi Arabia. In the Kingdom of Saudi Arabia, the Saudi Electronic
University, and the College of Administrative and Financial Sciences, the International Journal of
Advanced Research. https://www.journalijar.com/uploads/892_THESIS-0866.pdf
10. Boselie, P., & Van Der Heijden, B. (2024). Strategic Human Resource Management: A Balanced
Approach. McGraw-Hill.
11. Boxall, P., & Purcell, J. (2022). Strategy and human resource management (5th ed.). Bloomsbury
Publishing.
12. Byrne, B. M. (2013). Structural equation modeling with AMOS. In Routledge eBooks.
https://doi.org/10.4324/9780203805534
13. Chelangat, B. (2022). Organizational Culture and Organization Performance: A Critical Review of the
Literature. In IOSR Journal of Business and Management (Vol. 24, Issue 2, pp. 43–47).
14. Chen, N. F., Curran, P. J., Bollen, K. A., Kirby, J., & Paxton, P. (2008). An empirical evaluation of the
use of fixed cutoff points in the RMSEA test statistic in structural equation models. Sociological
Methods & Research, 36(4), 462–494. https://doi.org/10.1177/0049124108314720
15. Christensen, B. L., Johnson, R. B., & Turner, L. A. (2011). Research Methods, Design and Analysis.
Boston Pearson. - References - Scientific Research Publishing.
(n.d.). https://www.scirp.org/reference/ReferencesPapers?ReferenceID=1178507
16. Ciepley, D. (2023). Democracy and the Corporation: The Long View. Annual Review of Political
Science, 26(1), 489–517. https://doi.org/10.1146/annurev-polisci-051120-113010
17. Civil Service Commission. (2022). The Civil Service Commission (CSC) urged government offices to
review their service processes amid reports of slow service from dissatisfied clients. Civil Service
Commission. https://csc.gov.ph/gov-t-offices-told-to-review-service-processes
18. Cybellium. (2024). Study Guide to Regulatory Compliance: A Comprehensive Guide to Learn
Regulatory Compliance. Cybellium.
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4311
19. Demir, F. (2022). Innovation in the public sector: Smarter States, Services and Citizens. Springer
Nature.
20. Farazmand, A. (2023). Global Encyclopedia of Public Administration, Public Policy, and Governance.
Springer Nature.
21. Freeman, R. E., Harrison, J. S., Wicks, A. C., Parmar, B. L., & Colle, S. de. (2010). Stakeholder
Theory. Cambridge University Press.
22. Frimpong, K., & Wilson, A. (2005). Measuring Service Orientation of Service Delivery Employees.
23. Gabriel, A. G. (2022). Bureaucratic red tape in the Philippines. In Springer eBooks (pp. 1304–1311).
https://doi.org/10.1007/978-3-030-66252-3_3523
24. Garrick, A., Johnson, W. D., & Arendt, S. W. (2024). Breaking Barriers: Strategies for Fostering
Inclusivity in the Workplace. International Journal of Academic Research in Business and Social
Sciences, 14(2). https://doi.org/10.6007/ijarbss/v14-i2/20799
25. Genari, D., & Macke, J. (2022). SUSTAINABLE HUMAN RESOURCE MANAGEMENT
PRACTICES AND THE IMPACTS ON ORGANIZATIONAL COMMITMENT. Revista de
Administração de Empresas, 62. https://doi.org/10.1590/s0034759020220505
26. Ghimpau, V. (2020). Incentives, rewards, and recognition - what really motivates a researcher? In
MDPI eBooks. https://doi.org/10.3390/books978-3-03928-315-6-11
27. Ghosh, S., & Srivastava, B. K. (2014). Construction of a reliable and valid scale for measuring
organizational culture. Global Business Review, 15(3), 583–
596. https://doi.org/10.1177/0972150914535145
28. Guah, M. W. (2021). Handbook of Research on Innate Leadership Characteristics and Examinations of
Successful First-Time Leaders. IGI Global.
29. Henseler, J. (2020). Composite-Based Structural Equation Modeling: Analyzing latent and emergent
variables. Guilford Press. https://www.guilford.com/books/Composite-Based-Structural-Equation-
Modeling/J%C3%B6rg-Henseler/9781462545605
30. IaCobucci, D. (2010). Structural Equation Modeling Fit Indices, Sample Size, and Advanced Topics.
Journal of Consumer Psychology, 20, 90–98. - References - Scientific Research Publishing.
(n.d.). https://www.scirp.org/reference/referencespapers?referenceid=2078858
31. Idrus, S. H., Sumartono, E., Wartono, W., Suharto, S., & Syahriar, I. (2024). Harnessing Digital
Transformation for Improved Public Service Delivery: Lessons from Global Administrative Practices.
Deleted Journal, 1(3), 257–269. https://doi.org/10.59613/k8s6s859
32. Jannah, L. M., Sipahutar, M. Y., & Hariyati, D. (2020). Public Information Disclosure: Mapping the
understanding of multiple actors in corruption-prone Indonesian provinces. Policy & Governance
Review, 4(3), 167. https://doi.org/10.30589/pgr.v4i3.321
33. Jo, J., Chadwick, C., & Han, J. H. (2023). How the human resource (HR) function adds strategic value:
A relational perspective of the HR function. Human Resource Management, 63(1), 5–23.
https://doi.org/10.1002/hrm.22184
34. Latupeirissa, J. J. P., Dewi, N. L. Y., Prayana, I. K. R., Srikandi, M. B., Ramadiansyah, S. A., &
Pramana, I. B. G. a. Y. (2024). Transforming Public Service Delivery: A Comprehensive Review of
Digitization Initiatives. Sustainability, 16(7), 2818. https://doi.org/10.3390/su16072818
35. Marawu, N. M., Utete, R., & Zhou, S. (2023). Good governance as an economic driver for service
delivery: Lessons for the South African Government. International Journal of Management
Entrepreneurship Social Sciences and Humanities, 6(2), 71–
93. https://doi.org/10.31098/ijmesh.v6i2.1219
36. Masenya, M. J., & Mthombeni, A. (2023). Governance, Ethics and public service Delivery: the
ramifications of corruption. Journal of Governance Risk Management Compliance and Sustainability,
3(2), 40–49. https://doi.org/10.31098/jgrcs.v3i2.1893
37. Morales-Huamán, H. I., Medina-Valderrama, C. J., Valencia-Arias, A., Vasquez-Coronado, M. H.,
Valencia, J., & Delgado-Caramutti, J. (2023). Organizational Culture and Teamwork: A bibliometric
perspective on public and private organizations. Sustainability, 15(18), 13966.
https://doi.org/10.3390/su151813966
38. Neo, S., Grimmelikhuijsen, S., & Tummers, L. (2022). Core values for ideal civil servants:
Service‐oriented, responsive, and dedicated. Public Administration Review, 83(4), 838–862.
https://doi.org/10.1111/puar.13583
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4312
39. Norona, M., Louisse, T., & Evangelista, L. (2020). An Ergonomics-ServQual Approach in Enhancing
the Service Delivery Performance for a Government Agency in the Philippines.
40. Nzuva, S. M., & Purity, M. (2022). The Impact of Organizational culture on Employees’ Productivity:
A Comprehensive Systematic review. European Journal of Business and Management.
https://doi.org/10.7176/ejbm/14-4-05
41. Olson, J. (2025). Transformational leadership: unlocking potential and cultivating excellence in a team.
Jaroslav Zdanovic.
42. Papademetriou, C., Anastasiadou, S., & Papalexandris, S. (2023). The Effect of Sustainable Human
Resource Management Practices on Customer Satisfaction, Service Quality, and Institutional
Performance in Hotel Businesses. Sustainability, 15(10), 8251. mdpi.
https://doi.org/10.3390/su15108251
43. Poniatowicz, M., Dziemianowicz, R., & Kargol-Wasiluk, A. (2020). Good Governance and
Institutional Quality in the Public Sector: Theoretical and Empirical Implications. EUROPEAN
RESEARCH STUDIES JOURNAL, XXIII(Issue 2), 529–556. https://doi.org/10.35808/ersj/1608
44. Radu, C. (2023). Fostering a Positive Workplace Culture: Its Impact on Performance and Agility. In
IntechOpen eBooks. https://doi.org/10.5772/intechopen.1003259
45. Reina, R., & Scarozza, D. (2020). Human resource management in the public administration.
In Springer eBooks (pp. 61–101). https://doi.org/10.1007/978-3-030-43799-2_3
46. Salkind, N. J. (2008). Statistics for people who (think they) hate statistics (3rd ed.). Sage Publications,
Inc.
47. Sari, A. R. (2023). The impact of good governance on the quality of public management decision-
making. Journal of Contemporary Administration and Management (ADMAN), 1(2), 39–
46. https://doi.org/10.61100/adman.v1i2.21
48. Schedler, K., Guenduez, A., & Frischknecht, R. (2019). How smart can the government be? Exploring
barriers to the adoption of smart government. Information Polity, 24, 1–18.
https://doi.org/10.3233/IP180095
49. Schein, E. H. (1985). Organizational Culture and Leadership. Ssrn.com.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1496184
50. Shanka, M. S., & Buvik, A. (2019). When do relational exchanges matter? Social bond, trust, and
satisfaction. Journal of Business-to-Business Marketing, 26(1), 57–74.
https://doi.org/10.1080/1051712x.2019.1565137
51. Taylor, J. (2021). Performance in the public sector. In Oxford University Press eBooks (pp. 433–
450). https://doi.org/10.1093/oxfordhb/9780198805465.013.26
52. Tian, X., & Christensen, T. (2020). Ambiguous hybridity? Main features of China’s service-oriented
government reform. International Journal of Public Sector Management, 33(4), 419–433.
https://doi.org/10.1108/ijpsm-09-2019-0241
53. Tennin, K. L. (2023). Change management during unprecedented times. IGI Global.
54. United Nations. (2024). Citizen-centric Digital Transformation. Un.org.
https://publicadministration.un.org/unpsa/innovation-hub/Winners/2024-winners/Citizen-centric-
Digital-Transformation?utm_source=chatgpt.com
55. Vanka, S., Rao, M. B., Singh, S., & Pulaparthi, M. R. (2021). Sustainable human resource
management: Transforming Organizations, Societies and Environment. Springer.
56. Vaughan, S., & Arsneault, S. (2021). Managing Nonprofit Organizations in a Policy World, Second
Edition. Melvin & Leigh, Publishers.
57. Virani, A., & Van Der Wal, Z. (2023). Enhancing the Effectiveness of Public Sector Performance
Regimes: A Proposed Causal Model for Aligning Governance Design with Performance Logics.
Perspectives on Public Management and Governance, 6(1), 54–65.
https://doi.org/10.1093/ppmgov/gvac026
58. Wiswadas, W., Sobri, K. M., Alfatih, A., & Alamsyah, A. (2023). Accountability, Transparency, and
Employee Performance in Organizational Asset Management in Buddhist Religious Organizations:
Evidence from the Regional Office of the Ministry of Religion of South Sumatra Province. JPPUMA
Jurnal Ilmu Pemerintahan Dan Sosial Politik Universitas Medan Area, 11(1), 49–58.
https://doi.org/10.31289/jppuma.v11i1.9251
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue IX September 2025
www.rsisinternational.org
Page 4313
59. Xanthopoulou, P., & Plimakis, I. (2021). From New Public Management to Public Sector Management
Reforms during the pandemic. The effects of COVID-19 on public management reforms and
effectiveness. Technium Social Sciences Journal, 26, 576–596. https://doi.org/10.47577/tssj.v26i1.5177
60. Yuan, K.-H., & Chan, W. (2016). Measurement invariance via multigroup SEM: Issues and solutions
with chi-square-difference tests. Psychological Methods, 21(3), 405–
426. https://doi.org/10.1037/met0000080