The Influence of Executive Selection Factors on the Performance of Public Sector Organizations in Korea

Abstract

This research explores the determinants of organizational performance, focusing on executive selection factors. Despite the growth of public sector organizations in various policy fields, there have been few empirical studies of the relationship between executive selection and performance. Using the panel data from 1999 to 2007 of 13 quasi-governmental Korean organizations classified as government corporations, this research examines how politicization of boards, chief executive succession, and insider/outsider origin of chief executives affect organizational performance as measured by two indicators, the Performance Evaluation Index (PEI) and the Consumer Satisfaction Index (CSI). The results demonstrate that board politicization and chief executive succession have a significantly positive effect on the PEI, whereas the CSI is largely determined by contextual factors, such as presidential change and unemployment rate. Financial support from the government shows consistent influence on both performance indicators.