Environmental Change and the Strategic Responses of Public Organizations:Comparative Study of Supreme Audit Institutions during COVID-19

Abstract

This study investigates the strategies employed by public organizations to adapt to significant environmental changes, such as the COVID-19 pandemic. It aims to characterize these strategic responses and examine the factors influencing them. The analysis focuses on comparing the crisis response strategies of Supreme Audit Institutions (SAIs) in seven countries: the United States, the United Kingdom, Australia, Germany, France, Switzerland, and Korea. Additionally, the study explores how various aspects of the strategic environment, including the external context, organizational characteristics, and institutional framework, impact these crisis responses. Our findings reveal that most SAIs implemented changes in their organizational management and audit operations to ensure government accountability during the crisis. While there were similarities in the strategies employed, differences emerged based on each country’s unique circumstances. Notably, the type of SAI and specific aspects of its institutional context significantly influenced its strategic response. We also observed that the presence of distinct legal provisions enabled public organizations to maintain stability and continuity in performing their essential functions. This study underscores the critical importance of strategic management within public organizations. By comparing the responses of SAIs across the seven exemplar countries, it provides valuable insights with practical implications for enhancing SAI crisis responses in the post-COVID-19 era.