Decentralisation in Action: Understanding Organisational Culture and Employee Performance in Local Governments – A Multicontext Review for Advancing Sustainable Development Goal 16

<ns3:p>In this narrative review, we examine the role of organisational culture in shaping employee performance within local governments, addressing a critical gap in synthesised evidence connecting cultural elements to practical performance outcomes across diverse contexts. We focus on how leadership practices, change management, performance management, communication patterns, and employee engagement, within an organisational culture framework, collectively influence institutional capacity and foster inclusive, transparent, and accountable governance aligned with Sustainable Development Goal 16. Anchored in Schein’s Organisational Culture Theory, we conducted a narrative review of peer-reviewed articles, government reports, and case studies published between 2015 and 2025. We searched multidisciplinary databases including Scopus, Web of Science, and Google Scholar, using predefined inclusion and exclusion criteria to select high-quality studies relevant to organisational culture and performance in local government contexts. Data were analysed thematically to identify patterns and relationships among the key variables influencing performance outcomes. Our findings show that ethical and participatory leadership cultivates trust and alignment with institutional objectives, adaptive change management promotes responsiveness to technological and policy reforms, and data-driven performance management strengthens goal attainment and continuous improvement. We also found that inclusive communication patterns foster transparency and collaboration, while meaningful employee engagement drives motivation, equity, and professional growth. By integrating these elements, we establish a clear link between cultural practices and tangible governance outcomes, offering actionable insights for policymakers, institutional leaders, and stakeholders seeking to enhance local government performance. We contribute to the body of knowledge by providing a consolidated evidence base that informs strategies to strengthen institutional culture, advance accountability, and promote inclusive, effective, and sustainable public service delivery, supporting both theoretical understanding and practical interventions in local government contexts.</ns3:p>