Influence of Corporate Governance on Organizational Performance of State Corporations in Kenya
Science Journal of Business and Management
Volume 5, Issue 4, August 2017, Pages: 136-148
Received: May 12, 2017; Accepted: May 20, 2017; Published: Jun. 19, 2017
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Authors
Jenifer W. Muriuki, School of Business, Moi University, Eldoret, Kenya
Thomas Cheruiyot, School of Business, Moi University, Eldoret, Kenya
Joyce Komen, School of Business, Moi University, Eldoret, Kenya
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Abstract
Decision making failures in Kenyan Parastatal Boardrooms has more to do with independence of mind and competences as well as behaviors of directors sitting around the boardroom tables. This includes how they work together, their degree of transparency and accountability as decision-making groups and the team production culture in task performance. This study seeks to explore the influence of corporate governance on organizational performance of state corporations in Kenya. A survey design was used to arrive at the expected outcomes in this study. Out of a population of 187 State Corporation, a sample size of 125 was considered with 375 respondents. Data was collected using questionnaires. Descriptive and inferential statistics were computed using statistical package of social sciences. Linear regression model was used to determine the relationship between corporate governance and organizational performance. The study revealed that the Board Strategic Involvement, board CEO-Chair Collaboration and Board Members knowledge & skills respectively are statistically significant (P-value=0.000). This implies that the three variables together influence organization performance of state corporations and account for 68% variation on performance. Board Leadership and Board Team production Culture (together) were not statistically significant at 5% level.
Keywords
State Corporation, Organization Performance, Board, Customer Satisfaction, Corporate Governance
To cite this article
Jenifer W. Muriuki, Thomas Cheruiyot, Joyce Komen, Influence of Corporate Governance on Organizational Performance of State Corporations in Kenya, Science Journal of Business and Management. Vol. 5, No. 4, 2017, pp. 136-148. doi: 10.11648/j.sjbm.20170504.12
Copyright
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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