Moderating Effect of Information Technology Maturity on the Relationship between Board Attributes and Performance of State Enterprises in Kenya (original) (raw)
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AFRICAN JOURNAL OF BUSINESS AND MANAGEMENT (AJBUMA), 2022
The main objective of this study was to investigate the moderating effect of information technology governance on the relationship between corporate IT strategy and service delivery of state corporations in Kenya. To achieve this objective a hypothesis was formulated: ITG has no moderating effect on the relationship between CITS and service delivery of state corporations in Kenya. The Diffusion of Innovation Theory (DoI) and Fourth Industrial Revolution Theory guided the conceptualization and contextualization of the study. Descriptive cross-sectional research design was employed and primary data was collected through administering structured questionnaire and secondary data on service delivery was also collected from annual performance contract reports from 178 state corporations in Kenya. Thus, a census survey was conducted in order to get complete information from all participants in the population used to inclusively obtain better coverage than sample surveys. Out of 178 respondents, 120 questionnaires were filled and retuned thus making 67.4% response rate. The findings of the study found out that there is a statistically significant effect of IT governance on the relationship between corporate IT strategy and service delivery of state corporations in Kenya. This was well depicted by 69.8% variations in service delivery as explained by variations in corporate IT Target* ITG level of implementation, monitoring and evaluation of ITG framework, existence of corporate IT strategy, information on resource capability use, level of implementation of corporate IT strategy, level of cascading of corporate IT strategy. The study findings of this investigation can serve as a baseline to organizations that want to utilize corporate IT strategy and IT governance as overarching tools in their operations for efficient services. Not only that but also, the government through relevant ministries and other stakeholders who are key players in the performance of state corporations can use the findings to develop appropriate policies in regard to application of corporate IT governance strategies and service delivery innovations to support customized services. Key words: Information Technology Governance, Corporate Information Technology Strategy, Service Delivery, State Corporations and Kenya.
THE EFFECT OF INFORMATION TECHNOLOGY GOVERNANCE ON SERVICE DELIVERY OF STATE CORPORATIONS IN KENYA
IJECM, 2021
This study sought to investigate the effect of information technology governance on service delivery of state corporations in Kenya. The Diffusion of Innovation Theory was the theoretical anchorage of the study. The positivist orientation philosophy was utilized. The unit of analysis was 178 state corporations in Kenya. Primary data was collected using self-designed structured questionnaire and secondary data on service delivery was gathered from annual performance contracting reports. The study found a statistically significant effect of IT governance on service delivery of state corporations in Kenya. These results add value to existing knowledge in the area of service delivery of state corporations by determining the relevant factors that are important in defining service delivery of state corporations in Kenya. Based on study findings, the government of Kenya need to develop appropriate policies to support ITG applications and customised services for profitability and growth. The study suggests future studies which it deems important in contributing to future knowledge in research works like; market conditions, effect of customer trends, and political instability and government interference on service delivery of government entities.
Influence of Ict Capability on Organizational Performance in Commercial State Corporations in Kenya
Journal of Human Resource and Leadership, 2018
The study sought to determine the influence of ICT capability on organizational performance in commercial state corporations in Kenya Methodology: This study adopted a census method, and used both qualitative and quantitative methods of data collection. The target population of the study was chief executive officers (policy makers), directors of human resources and deputy directors of human resources of both pure and strategic commercial state corporations in Kenya. A total of 165 questionnaires were administered to chief executive officers (policy makers), directors of human resources and deputy directors of human resources in both pure and strategic commercial state corporations in Kenya. Fifty five interviews were carried out and forty eight of the respondents were interviewed. Result: The study found that ICT capability has a positive and significant effect on organizational performance of commercial state cooperation A unique contribution to theory, practice, and policy: The study recommended that organizations should place more emphasis on human centered information management in order to improve the ways in which people use and share information. The study also recommended that there should be IT education services that provide training in system use to employees and offer managers training in how to plan for and manage IT investments and IT research and development services that provide the firm with research on potential future IT projects and investments that could help the firm differentiate itself in the market place.
Corporate governance is a combination of corporate policies and best practices adopted by the corporate bodies to achieve their objectives in relation to their stakeholders (Mallin, 2007). It has been increasingly recognized in public organizations that appropriate corporate governance arrangements are a key element in corporate success (Meredith & Robyn, 2005). They form the basis of a robust, credible and responsive framework necessary to deliver the required accountability and bottom line performance consistent with an organization's objectives. Corporate governance in Kenya has been an important topic because of corporate scandals such as the recent complaints on the composition of the board members in the state corporations against the tribal lines basis. Mismanagement, bureaucracy, wastage, pilferage incompetence and irresponsibility by directors and employees are pointed out in the sessional paper 4 of Government of Kenya as the main problems that have made State Corporations (SC's) fail to achieve their objectives (Reuters, 2004). Kenya's entities have had a history of poor governance system with about 70% of the scandals attributed to weak corporate governance practices, lack of internal controls, and weaknesses in regulatory and supervisory systems as well as conflict of interest. Albeit a lot of literatures have drawn much emphasis on the relationship between corporate governance and ownership and on the relationships little is known about the influence of the corporate governance on performance of public organization. The factors considered include; Board composition, Management compensation, Governance structure and Board size. Kenya Ports Authority (KPA) is the case study in this study. The sample size was 251 respondents of KPA's employees. The study used primary data collected using questionnaires which were given to the respondents at their places of work. Out of the four variables studied it was found that the board composition had a greater influence on the performance of public organizations. The study recommends, among others, that the government should therefore enforce the measures it has laid down on corporate governance to ensure public organizations are following them so that the recommended governance structures are followed.
The International Journal of Business & Management, 2020
Corporate Governance and Performance of Companies Listed at Nairobi Securities Exchange: Does Operating Environment and Top Management Team Characteristics Influence the Relationship? Kenya 1. Introduction Corporate governance regulations ensure transparent management of companies for efficient accountability to stakeholders. According to Gregory Zabri, Ahmadand Wah (2016), the principal characteristics of effective corporate governance include transparency which is reflected in the disclosures made by the firm. It includes the disclosure of relevant financial and operational information and internal processes of management oversight and control; protection and enforceability of the rights and prerogatives of all shareholders; and directors capable of independently approving the corporation's strategy and major business plans and decisions, and of independently hiring management, monitoring management's performance and integrity, and replacing management when necessary. The firms with weaker governance structures have to face more agency problems and managers of such firms gain more private benefits (Brunninge, Nordqvist & Wiklund, 2015). It has been noted that good corporate governance simply means good business (OEDC, 1999). Corporate governance provides a structure for directing and controlling the business with a higher level of efficiency, transparency, accountability and fairness. In addition, corporate governance practices include the decision-making and controlling processes for a business. It offers an understanding of the managerial structure of business firms, as such, top management team characteristics. The various attributes of corporate governance structure, including a board of directors, an audit committee, independent directors, various other administrative committees within a board, are factors influencing the firms' decision-making process and thus play an important role in controlling manager's discretionary power hence driving the firm to higher performance.
2017
Corporate governance has become an issue of global significance. Globally, the public sector plays a central role in socio-economic development but the sector has however been affected by globalization, public sector reforms, regional and international partnerships among other factors. Kenya’s public sector organizations need good governance in order to realize efficiency and better service delivery as enshrined in Vision 2030 that envisages new structure of governance that can only be achieved in an environment of good corporate governance practices. The general objective of this study was to investigate the influence of corporate governance practices on performance in Kenya’s public sector. Quantitative data was analyzed descriptively while inferential statistics employed regression analysis to test hypotheses. The target population in this study comprised of selected government offices and respondents was senior management employees working in those ministries. An appropriate sam...
2020
The use of information technology is a necessity and a challenge in this 4th-millennium era. Companies that do not want to use technology that suits their needs will be left behind. The Indonesian government has also required the use of appropriate information technology. The purpose of this study is to evaluate the implementation of the Ministry of SOE Regulation No. Per 02 / MBU / 2013 concerning guidelines for the preparation of information technology management of State-Owned Enterprises (SOE) in the field of non-public finance and the implementation of risk management to SOEs that are moderated by corporate governance. The population in this study is State-Owned Enterprises (SOE) in the financial sector. The research sample of 17 SOEs was sampled with the purposive sampling method. The analysis technique used is multiple linear regression. The results showed that IT Governance does not affect firm performance. ERM significantly influences firm performance. Corporate governance...
The main objective of this study was to establish the effect of corporate governance on financial performance of companies listed at Nairobi Securities Exchange. Specifically, the study examined the composition of board members, shareholders, board size and CEO (Chief Executive Officer) duality has an effect on financial performance of companies listed at the Nairobi Securities Exchange. The study population consisted of all the sixty-six companies that are listed at Nairobi Securities Exchange as at December 2016. The sample population was thirty-five companies listed at NSE. From the multivariate regression analysis, the study established that corporate governance practices such as board composition negatively and significantly affects the financial performance while board size and CEO duality has a positive effect on the financial performance while shareholding has a positive and insignificant effect financial performance of companies listed at the Nairobi Securities Exchange. The study established the existence of significant relationship between corporate governance and financial performance of companies listed at the Nairobi Securities Exchange. The study established that shareholding (ownership concentration) has insignificant effect on financial performance of companies. The study also established that CEO duality and board size positively influences the performance of companies. The study further established that board composition has a negative influence on the financial performance of companies. The study recommends the companies to ensure there is a good balance between the non-executive members and executive members in their boards to ensure the level of their autonomy is high. Further, the study recommends that the chief executive officers especially in a case where the owner doubles up as a chairperson and as a CEO to continue serving in various roles in a company. The study further recommends companies to encourage large shareholders to invest more as they have tendency for monitoring, controlling and ratifying roles in the company. This can improve the performance of the company especially when some of the shareholders are managers.
THE EFFECT OF THE INFORMATION TECHNOLOGY COMPETENCE OF THE BOARD OF DIRECTORS ON ORGANIZATIONAL PERFORMANCE, 2020
The main objective of this work is to examine the relationship between the competence of Council Information Technology (CTIC) and the company's perceived organizational performance (DO), and whether this relationship can be mediated by IT governance mechanisms (MGTI) and the IT governance level of the board (NGTIC). The study proposes a conceptual research model built through a literature review on corporate governance and IT management. For this, a quantitative survey was carried out with 204 board members of publicly-held and privately-held Brazilian companies. The results showed that the board's IT competence has a positive influence on perceived organizational performance, and that IT governance mechanisms are important board tools, depending on the degree to which they are implemented, and that they are also positively associated. to perceived organizational performance. On the contrary, the IT governance level of the board did not show results positive in influencing the perceived organizational performance, requiring the mediation of IT governance mechanisms to achieve some significance in the model. These results signal a gap in the monitoring role and involvement of corporate governance in IT governance exercised by the members of the board of directors.