CORPORATE GOVERNANCE IN STATE OWNED ENTERPRISES IN ZIMBABWE

Résumé

This thesis undertakes a thorough analysis of the complex relationship between Zimbabwe's state-owned firms' financial performance and the efficacy of corporate governance.  Since a number of Zimbabwe's state-owned businesses appear to be underperforming, corporate governance standards have gained attention in the country. A number of state-owned businesses, including Zimbabwe Broadcasting Corporation, Zimbabwe Electricity Supply Authority, Zimbabwe Telecommunications Corporations, National Railways of Zimbabwe, and the Grain Marketing Board, are performing poorly rather than just one or two. These businesses are all owned by the government and run in accordance with corporate governance principles. These businesses typically have poor performance, which raises concerns about the nation's corporate governance standards. The lack of adequate corporate management was the cause of the failure of a few state-owned businesses in the nation, including Air Zimbabwe and Zimbabwe United Passenger Company. The researcher used a mixed methodology, collecting data from respondents through self-administered questionnaires and interviews; stratified random sampling, which included Board Chairpersons, Board Members, CEOs, and management of selected SOEs in Harare, Zimbabwe; and qualitative interviews, surveys, and case analyses to uncover the complex dynamics at play. The study aimed to identify the organizational culture, government intervention, privatization, corruption, independent commissions, and directorial hegemony. The data were presented in the form of tables and charts created using SPSS software. For some respondents, the idea of corporate governance sounded nice, but for many others, the message was unclear. Though the idea was too abstract for them, they could see that corporate governance was a good thing conceptually. Additionally, the data show that the conservative culture cannot be eradicated due to its long-standing integration with state-owned businesses.  The study found a positive correlation between board composition and organizational success as well as a positive correlation between board size and organizational performance. Additionally, the utilization of board performance contracts and organizational performance were found to be positively correlated. The study, therefore, recommends that SOEs should practise good corporate governance by adhering to corporate governance legislation such as the Public Entities and Corporate Governance Act Chapter 10.31 which spells out how boards of SOEs must be composed. The contextual intricacies, cultural complexities, and particular obstacles intrinsic to the African business milieu are extensively considered. Through a comparative comparison of successful commercial ventures and those meeting problems, the research intended to discover corporate governance methods that improve effectiveness in state companies. The results of this study offer useful information for African business executives, legislators, and educators in addition to adding to the body of knowledge on leadership and innovation.