Science Journal of Business and Management

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Influence of Corporate Governance on Organizational Performance of State Corporations in Kenya

Received: 12 May 2017    Accepted: 20 May 2017    Published: 19 June 2017
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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.

DOI 10.11648/j.sjbm.20170504.12
Published in Science Journal of Business and Management (Volume 5, Issue 4, August 2017)
Page(s) 136-148
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

State Corporation, Organization Performance, Board, Customer Satisfaction, Corporate Governance

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Author Information
  • School of Business, Moi University, Eldoret, Kenya

  • School of Business, Moi University, Eldoret, Kenya

  • School of Business, Moi University, Eldoret, Kenya

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  • APA Style

    Jenifer W. Muriuki, Thomas Cheruiyot, Joyce Komen. (2017). Influence of Corporate Governance on Organizational Performance of State Corporations in Kenya. Science Journal of Business and Management, 5(4), 136-148. https://doi.org/10.11648/j.sjbm.20170504.12

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    ACS Style

    Jenifer W. Muriuki; Thomas Cheruiyot; Joyce Komen. Influence of Corporate Governance on Organizational Performance of State Corporations in Kenya. Sci. J. Bus. Manag. 2017, 5(4), 136-148. doi: 10.11648/j.sjbm.20170504.12

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    AMA Style

    Jenifer W. Muriuki, Thomas Cheruiyot, Joyce Komen. Influence of Corporate Governance on Organizational Performance of State Corporations in Kenya. Sci J Bus Manag. 2017;5(4):136-148. doi: 10.11648/j.sjbm.20170504.12

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  • @article{10.11648/j.sjbm.20170504.12,
      author = {Jenifer W. Muriuki and Thomas Cheruiyot and Joyce Komen},
      title = {Influence of Corporate Governance on Organizational Performance of State Corporations in Kenya},
      journal = {Science Journal of Business and Management},
      volume = {5},
      number = {4},
      pages = {136-148},
      doi = {10.11648/j.sjbm.20170504.12},
      url = {https://doi.org/10.11648/j.sjbm.20170504.12},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.sjbm.20170504.12},
      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.},
     year = {2017}
    }
    

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    AU  - Jenifer W. Muriuki
    AU  - Thomas Cheruiyot
    AU  - Joyce Komen
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    T2  - Science Journal of Business and Management
    JF  - Science Journal of Business and Management
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    AB  - 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.
    VL  - 5
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