This study investigates the impact of Governance, Risk management, and Compliance (GRC) practices on operational efficiency and corporate reputation. Drawing on the Resource-Based View (RBV), Stakeholder Theory, and the signaling perspective, it conceptualizes GRC as a set of organizational capabilities that enhance operational efficiency and company reputation. It also examines the mediating role of operational efficiency in the GRC–reputation relationship, particularly within technologically advanced and regulated sectors. Data were collected through a structured questionnaire distributed to 126 professionals across various Saudi technology-driven organizations, and the analyses combined descriptive statistics, hierarchical regression, and bootstrapped mediation testing using PROCESS to assess direct and indirect effects. The results indicate that operational efficiency partially mediates the effects of governance and compliance on reputation, supporting the argument that strengthened internal processes enhance external stakeholder evaluations; meanwhile, no mediation was found for risk management. Although the study offers meaningful insights, its sample size and sectoral focus limit the generalizability of conclusions, suggesting the need for broader or longitudinal research. This study contributes by advancing the conceptualization of GRC as organizational capabilities and empirically demonstrating their roles in strengthening both efficiency and reputation within technology-driven firms where digital governance and compliance capabilities are increasingly central.
Aloulou et al. (Thu,) studied this question.