THE QUALITY OF GOVERNMENT REGULATIONS ON COMPANY OPERATIONAL EFFICIENCY

THE MEDIATING ROLE OF PUBLIC SERVICES IN THE BUSINESS READY INDEX

Abstrak

This study examines the effect of government regulatory quality on firms’ operational efficiency, with public services as a mediating variable, within the Business Ready Index (B-READY) framework. Using secondary data from 50 countries in the 2024 B-READY dataset, the study applies Structural Equation Modeling–Partial Least Squares (SEM-PLS) to test direct and indirect relationships among variables. The findings show that regulatory quality positively and significantly influences public service performance, which in turn significantly improves firms’ operational efficiency. Moreover, public services are found to significantly mediate the relationship between regulatory quality and operational efficiency. These results underscore the importance of strengthening public service delivery and digital governance to enhance business performance and national competitiveness.