Balancing Social Mission And Market Performance: Determinants Of Financial Resilience Among Subsidiaries In Public Sector Agency

Abstract

This study investigates the factors influencing financial resilience among subsidiaries in public sector agency tasked with uplifting the socio-economic status of the indigenous community. Straddling the dual mandate of social service and financial viability, the subsidiaries present a compelling case for examining the complexities of managing government-linked enterprises (GLEs). Drawing on the Triple Bottom Line (TBL), Resource-Based View (RBV), and Stakeholder Theory, this research identifies five key variables that potentially contribute to organizational resilience: financial sustainability, revenue diversification, leadership quality, organizational capacity, and market demand. A cross-sectional survey of 381 employees across multiple subsidiaries, combined with multiple regression analysis, reveals that revenue diversification and organizational capacity are significant predictors of resilience, while financial sustainability, leadership quality, and market demand show positive but statistically insignificant relationships. The paper concludes with implications for policy and practice, offering recommendations for public-sector enterprises seeking to balance mission-driven objectives with sustainable financial outcomes.