The Impact of Strategic Decision Effectiveness on Achieving Sustainable Development: Institutional Capacities as a Mediating Variable – A Field Study in King Hussein Bin Talal Development Area in Jordan
DOI:
https://doi.org/10.59759/business.v5i2.1570Keywords:
Strategic Decision Effectiveness, Sustainable Development, Institutional Capacity, Partial Mediation, King Hussein Bin Talal Development Area.Abstract
The Impact of Strategic Decision Effectiveness on Achieving Sustainable Development: Institutional Capacity as a Mediating Variable – A Field Study in King Hussein Bin Talal Development Area in Jordan
Abstract
Hussein Bin Talal Development Area in Jordan.
The study included a comprehensive survey of managers in the upper and middle management levels, with 360 valid questionnaires analyzed. The study adopted the descriptive-analytical approach, and data analysis was performed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via the SmartPLS.4 software.
Descriptive statistics results showed that the level of Strategic Decision Effectiveness (with a general mean of 4.06), Institutional Capacity (with a mean of 4.15), and Achieving Sustainable Development (with a mean of 4.13) were all rated high. Path analysis results revealed a strong, positive, and statistically significant direct effect among all variables. The path from Institutional Capacity to Sustainable Development recorded the highest path coefficient (0.997). The results confirmed that Institutional Capacity plays a partial mediation role (Partial Mediation) in the relationship between Strategic Decision Effectiveness and Achieving Sustainable Development, with an indirect effect of (0.890).
Based on these findings, the study recommended the necessity of intensifying efforts to develop Informational and Technological Capacity (ranked lowest in Institutional Capacity) and enhancing attention to the Environmental Dimension (ranked lowest in Sustainable Development), to ensure the continued effectiveness of strategic decisions in achieving a greater balance among the dimensions of sustainable development.
Keywords: Strategic Decision Effectiveness, Sustainable Development, Institutional Capacity, Partial Mediation, King Hussein Bin Talal Development Area.
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