The influence of corporate governance on organisational culture and employee engagement in the Saudi context

Purpose The purpose of this study is to evaluate the influence of accounting corporate governance on organisational culture and employee engagement (EE) in Saudi context. Design/methodology/approach Structural equation modelling and regression analysis used to analyse a sample of 487 Saudi organisations based on board independence, employee engagement, organisational culture, organisation size and industry. Findings The findings reveal that board independence enhances organisational culture but it reduces EE. The findings also highlight that the relationship between corporate governance and EE varies across industries. Thus, transparent governance, stakeholder participation and HR-driven leadership approaches foster an engaging workplace culture. Meanwhile, institutional ownership limited direct effect on engagement but it shapes corporate responsibility initiatives. Research limitations/implications The study limited to Saudi organisations and future research should explore industry-specific governance practices and long-term governance impacts on engagement trends. Originality/value This study diverges from the existing literature as it attempts to link corporate governance with organisational culture and EE.