Driving public policy success: How organisational culture, transformational leadership, and stakeholder engagement influence sustainable public organisations’ performance?

Abstract This paper investigates the influence of organisational culture, transformational leadership, and stakeholder engagement on the performance of public organisations and the effectiveness of public policy implementation in Banten Province, Indonesia. We examine examines these impacts within the complex socio‐cultural context of Indonesia, providing new insights into how local variables influence the effectiveness of implementation. Using data form 300 respondents in Indonesia, the study confirms a significant and positive impact, consistent with theoretical propositions, showing that a supportive organisational culture, effective transformational leadership, and comprehensive stakeholder engagement improve the performance of public organisations. This organisational performance has a significant and positive impact on the effectiveness of public policy implementation. The findings provide original insights into the synergistic effects of these variables in the context of a developing country, contributing to debates in existing public administration literature. Points for practitioners Building a strong and adaptive public organisation culture is essential. This study found that an organisational culture that emphasises transparency, accountability, and innovation has been proven to improve the performance of public institutions. The results of this study found that transformational leadership has a significant effect on organisational performance in the public sector. This serves as a guideline for practitioners to inspire and motivate their members to improve performance. This study also found that stakeholder engagement affects organisational performance in the public sector. This serves as a reference for practitioners (especially organisational leaders) on how to use dialogue forums, public consultations, and transparent participatory mechanisms to build support. The findings of this study emphasise that the better an organisation's performance in the public sector, the more effectively it will be able to drive policy implementation. Therefore, this study serves as a guide for practitioners to ensure that the application of organisational performance indicators aligns with organisational objectives.