CORPORATE GOVERNANCE, MACRO ENVIRONMENT, TOP MANAGEMENT CAPABILITIES AND PERFORMANCE OF COMMERCIAL STATE CORPORATIONS IN KENYA
Abstract
Purpose: This study investigates the influence of corporate governance, macro environment, and top management capabilities on the performance of commercial state corporations in Kenya. Motivated by persistent performance challenges within state-owned enterprises, the research aimed to provide a holistic understanding of internal and external factors that drive organizational success. An integrated conceptual model was developed and tested using data collected through structured questionnaires administered to top-level managers across various commercial state corporations. The study was theoretically anchored in Agency Theory, Stewardship Theory, Upper Echelons Theory, and Resource Dependency Theory. Methodology: The variables considered in this paper are corporate governance conceptualized as an independent variable and anchored on agency theory, macro environment as the moderating variable supported by steward theory, top management capabilities as the intervening variable, anchored on upper echelon theory and performance as the dependent variable. The study used a descriptive research design and a positivist worldview. A semi-structured questionnaire was administered to 47 commercial state corporations. The data was analyzed using descriptive and inferential statistics, notably Pearson's Product-Moment Correlation and multiple regression analysis for hypotheses. Findings: The study established that collectively and individually, corporate governance, macro environment, and top management capabilities positively and statistically influence commercial state corporations in Kenya.
JEL: G34, E02, M12, L25, L32
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DOI: http://dx.doi.org/10.46827/ejefr.v10i2.2179
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