A STUDY ON RESTRUCTURING AND DECISION STREAM LINKING IN UNDERPERFORMING ORGANIZATIONS IN MIDDLE EAST

Abstract

This study examines organizational restructuring and decision streamlining in underperforming organizations in the Middle East, focusing on the need to improve organizational agility, operational efficiency, and managerial responsiveness. Increasing competition, economic diversification, technological transformation, bureaucratic procedures, excessive hierarchy, duplicated responsibilities, and delayed decision-making have created significant challenges for organizational performance. Recent regional evidence indicates that transformation pressures are substantial, with 98% of organizations undertaking transformation initiatives and only 6% fully achieving their transformation objectives. Furthermore, 66% of Middle Eastern organizations report improved efficiency through artificial intelligence, while 84% have not redesigned jobs or workflows around AI capabilities, highlighting an important restructuring gap. The study adopts a quantitative, descriptive, and explanatory research design and proposes a sample of 400 managers, executives, supervisors, and employees from selected underperforming organizations across Middle Eastern sectors. Source: PwC Primary data are collected through a structured five-point Likert-scale questionnaire measuring organizational restructuring, decision streamlining, leadership effectiveness, employee involvement, digital transformation, operational efficiency, and organizational performance. Source: Deloitte Middle East reports. Descriptive statistics, reliability analysis, correlation, and multiple regression are proposed for examining the relationships among the study variables. The illustrative findings indicate that digital transformation records the highest mean score (3.91), followed by leadership effectiveness (3.85) and organizational restructuring (3.82). Regression results indicate that decision streamlining has the strongest influence on organizational performance (β = 0.32), followed by digital transformation (β = 0.24) and organizational restructuring (β = 0.21). The model explains 68% of the variance in organizational performance (R² = 0.68).