Influence of Corporate Governance Practices on Performance in Kenya’s Public Sector: A Surveyof Selected National Government Ministries (original) (raw)
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Public Policy and Administration Research, 2012
This paper describes the impediments to effective management and performance by corporate managers in public administration and governance. Methodology: A survey questionnaire was administered to 200 corporate and executive managers in the scope of public administration and management. The researcher used descriptive and correlation method to assess the relationship between variables and corporate governance practices. Findings: The study found that senior corporate management leadership is critical to the success of public administration and management in state owned corporations in Kenya. In this regard, considerable attention and support need to be provided by senior corporate management to ensure that the strategy execution in the public administration and governance reforms has been well understood in the agency. Originality and value: The study supports the existence of four empirical dimensions in the formulation of effective performance and management by corporate managers. It brings a new perspective in terms of corporate management practices and emerging impediments.
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.
GOOD GOVERNANCE AND SUSTAINABLE PERFORMANCE IN THE KENYAN PUBLIC SECTOR
Kenya School of Government, Lower Kabete, 2024
This paper explores the correlation between good governance practices and sustainable performance within public sector organizations, particularly focusing on those in Kenya. It emphasizes the importance of good governance in enhancing efficiency, accountability, and transparency, which are key factors contributing to improved sustainable outcomes. The study aims to understand how good corporate governance principles influence sustainable performance, along with risk management practices, within the Kenyan public sector. Using a mixed research design, the study surveyed 384 employees from various public organizations, including Constitutional Commissions, Independent Offices, County Government, Departments, Ministries, Private Sector, and State Corporations. Data collection involved the administration of questionnaires through Google Forms, with descriptive statistics utilized to analyze respondents' answers. Inferential statistics, particularly ordered logistic regression, were employed to examine the relationship between research variables. The findings suggest a significant impact of good governance principles on sustainable organization performance in the Kenyan public sector. However, certain aspects of good governance showed statistically insignificant results, warranting further investigation. The study recommends that public organizations prioritize the adoption of good governance principles in their operations, emphasizing the need for ongoing research to delve deeper into the factors influencing governance practices within the sector. Tables and charts were utilized to present the analyzed results, providing a clear visual representation of the findings.
Journal of Public Policy & Governance, 2021
Sound corporate governance practices are a major contributor to effective and efficient management of State Corporations in the health sector in Kenya. Since independence, the level of accountability in management of State Corporations has continued to decline despite the availability of various monitoring structures like legal frameworks, ethics and integrity, policies and the code of conduct and ethics intended to provide a clear road map to successful performance of the State Corporations. The objective of this study was to determine the effect of corporate governance practices on the performance of the State Corporations in the health sector in Kenya. The study adopted a descriptive research design with a population comprising of the health State Corporations. Primary data was collected the using questionnaires. Data was analyzed using SPSS software. The results indicated that accountability and organizational performance of health State Corporations is positively and significan...
African Development Finance Journal, 2020
The purpose of the study was to establish the effect of corporate governance practices on the financial performance of non-governmental organizations in Homa Bay County. Methodology: The study employed descriptive research design and secondary data to study a population of 38 international and local NGOS registered under the NGO board and operating in Homa Bay County. The data collected was analyzed through descriptive and inferential statistics. Findings: The study findings pointed to a relationship between corporate governance practices and financial performance. Number of board meeting was found to significantly influence financial performance. Board training and board diversity was found to have no significant influence of financial performance of non-governmental organizations. Implications: The overall conclusion was that corporate governance practice influences the financial performance of organizations NGOs in Homa Bay County. Individual variables analyzed showed that only board meetings significantly correlated with financial performance unlike other two dependent variables which did not have significant influence. However, when a regression analysis was done with all the three dependent variables, corporate governance practices came out as having a significant relationship with financial performance due to significance of board meetings. Value: the study extends knowledge of theory building around the corporate governance around Non-Governmental Organizations. NGOs should widen their scope and adopt more corporate governance practices for better financial performance. Organization should focus more on consistent meetings and monitoring of their performance, having more proactive boards and more relevant practices.
Influence of corporate governance on performance of public universities in Kenya
International Journal of Research in Business and Social Science (2147- 4478)
This study aims to determine the influence of corporate governance on performance of Public Universities in Kenya. The study was anchored on social network theory. To achieve the objective, the study was based on a pragmatic philosophy and mixed research design with a target population of 234 University top managers. Primary data was collected using a 5 point Likert type questionnaire and an interview guide. Data was analyzed using descriptive and inferential statistics. Findings revealed that corporate governance had significantly statistical influence on performance of public universities in Kenya. This study concluded that adherence to good corporate governance practices are essential strategies Public Universities can use in their endeavour to improve on their performance. It is further recommended that University top managers should adhere to good corporate governance practices, specifically to management guidelines, allow for public participation and be transparent in their ac...
2017
The main purpose of the study was to establish the role of corporate governance in financial management. An explanatory research design was adopted in the in-depth study on the corporate governance applied by 50 NGOs in Kenya. Primary data was obtained by administering questionnaires. Data was analyzed using both quantitative. From the regression results corporate governance efficiency/effectiveness, Responsibility, Transparency, Integrity and Accountability had significant and positive effect on financial management of MFI. Thus, leading to efficient, effective and sustainable entities that have contributed to the welfare of society by creating wealth, employment and solutions to emerging challenges; creating positive image among the stakeholders both locally and internationally; and promoting transparency and accountability recognized by the stakeholders are among the major importance of corporate governance. The study recommends that there is need for the Non-Governmental Organiz...
Corporate governance practices are the process and structures used to direct and manage business affairs of the company towards enhancing prosperity and corporate accounting with the ultimate objective of realizing shareholders long-term value while taking into account the interests of other stakeholders. Education institutions are run and managed by the Board of Management (BOM) through the secretary who is the chief executive officer. Studies indicate that corporate governance practices have been adopted to some extend in this institution however their effect on performance has not been clearly brought out. The purpose of this study is to assess the effect of corporate governance practices on performance of secondary schools in Kisumu Central Sub-county. The conceptual framework constructed corporate governance practices as independent variables and school performance as dependent variable. Respondents’ characteristics such as age, gender and marital status were set as controlling variables. The study adopted a descriptive survey. Stratified random sampling was used to arrive at the schools to bring in all the types of schools in the area of study. The sample comprised of fifty respondents drawn from ten out of twenty-two schools within the area. Both primary and secondary data was used. Descriptive statistics, correlation and regression technique were used in the analysis. The findings indicate that education of teachers and Leadership practices have significant effect on the performance of schools, however Leadership had a negative influence on performance, whereas education had a positive effect. The study recommends that BOM, Ministry of Education Science and Technology together with Teachers Service Commission should consider exploring other options other than leadership regarding the entire aspect of governance to ensure increased performance in schools. The findings of this study are important to stakeholders in education, especially educational administrators and policy makers.