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

This research explores the determinants of organizational performance, focusing on executive selection factors. Although we have observed the growth of public sector organizations in various policy fields, empirical studies examining the relationship between executive selection and performance remain largely underdeveloped. Using the panel data of 13 quasi-government organizations classified as government corporations in Korea between 1999 and 2007, this research seeks to fill the gap by examining how the executive selection factors, including the politicization of boards, chief executive succession, and insider/outsider origin of chief executives, affect organizational performance measured by two indicators: the performance evaluation index (PEI) and consumer satisfaction index (CSI). The results demonstrate that politicization of boards and chief executive successions have a significantly positive effect on the PEI, whereas the CSI was largely determined by contextual factors such as presidential change and unemployment rate. Financial support from the government shows consistent influence on both performance indicators