Boosting the Organizational Performance: Ethical Climate as a Moderator f or O ptimizing R isk Management P ractices i n the Saudi Public Sector

Abstract

Purpose: Drawing upon contingency theory, this study aims to investigate the relationship between risk management practices (RMPs), ethical climate (EC), and organizational performance (OP) in public organizations within the Kingdom of Saudi Arabia (KSA). Specifically, the study explores the moderating effect of EC in shaping the relationship between RMPs and OP. Design/methodology/approach: Survey data were collected from a convenience sampling of 392 senior government directors within public organizations in the KSA through an online questionnaire. The relationships between study constructs were analyzed using PLS-SEM with the bootstrapping technique. Findings: The study's findings reveal a significant positive impact of both RMPs and EC on organizational performance. Notably, the research demonstrates that ethical climate significantly moderates the positive relationship between RMPs and OP, highlighting the critical importance of ethical conduct in maximizing the effectiveness of risk mitigation strategies.