The Role of Economic Policies in Enhancing Organizational Management and Sustainable Growth

Abstract

Economic policies play a critical role in shaping organizational management practices and sustainable growth, yet their impacts remain underexplored in developing economy contexts. This mixed-methods study examined the relationship between economic policies and organizational outcomes among 425 managers and 25 policy stakeholders in Khyder Pakhtunkhwa, Pakistan. Multiple regression analyses revealed that economic policies explain 58.4% of management effectiveness variance and 51.2% of sustainable growth variance. Fiscal policy (β = 0.342, p < 0.001) and structural policy (β = 0.287, p < 0.001) demonstrated strongest impacts. Qualitative thematic analysis identified five major themes: policy awareness, management responses, implementation challenges, performance outcomes, and alignment recommendations. Key challenges included policy inconsistency (96% prevalence) and capacity constraints. Findings support integrated policy-organization frameworks and policy responsiveness theories. Results inform policymakers on enhanced communication, stability mechanisms, and capacity building while guiding organizational leaders on proactive policy integration. This study contributes developing economy contextualization and sector-specific analysis to economic policy literature.