Governance Mechanisms in Practice in Small Service Organizations: Behavior as a System-Level Mechanism

Abstract

This research consists purposes were 1. to analyze structural, procedural and behavioral governance mechanisms within the management systems of small service organizations 2. to explain the role of behavioral mechanisms as system-level mechanisms in driving organizational operations and compensating for systemic limitations and 3. to develop and propose a conceptual framework of governance mechanisms as an integrated system that explains the relationships between governance mechanisms and organizational performance outcomes. This study employed a qualitative research approach. The research instrument consisted of semi-structured interviews. The target group comprised 12 participants selected through purposive sampling. Data collected from the semi-structured interviews and relevant documents were analyzed using content analysis. The findings revealed that 1) The management system was characterized as a semi-formal system comprising three interrelated dimensions of governance mechanisms operating at the system level. Structural and procedural mechanisms functioned as the foundational framework for organizational operations however, they remained limited in terms of systematic integration and consistency. In contrast, behavioral mechanisms were embedded in the actual practices and situational actions of personnel in day-to-day operations 2) Behavioral mechanisms played a crucial role as system-level mechanisms by linking, reinforcing and compensating for the limitations of structural and procedural mechanisms, particularly in situations where the organizational system had not yet evolved into clearly standardized practices and 3)  Service consistency functioned as a mediating mechanism between the operation of governance mechanisms and service quality outcomes. This finding reflects that service quality in small service organizations does not rely solely on formalized systems, but rather emerges from the interrelationships and integrated functioning of structural, procedural and behavioral mechanisms at the operational level. In other words, when structural, procedural and behavioral mechanisms operate in a coordinated and appropriate manner, they contribute to the maintenance of service quality in practice.