| dc.description.abstract | Corporate governance is a classification of laws and best regulations used by the corporations
to achieve their mandate. It is believed to be one of the major determinants of organizational
performance within the corporations including State Corporations in' _Kenya. Corporate
governance therefore, has gained a lot of recognition as a tool for an efficient and effective
board of directors. The purpose of the research was to determine a relation between corporate
governance and organizational performance in service state corporations. The specific
objectives of the study were; to establish the effect of board size, the effect of board
composition and the effect of gender diversity in the board on organizational performance.
The study targeted 675 top management employees of Service State Corporations in Kenya, a
sample of 245 respondents were selected using Mugenda and Mugenda (2003) formula.
Reliability was established using test-retest method and the result compared to the threshold
value of 0.7. Validity was established through expert review. The findings revealed that the
three corporate governance practices collectively accounted or 39.5% (R2= 0.395, p=O.OOO)
variation in organizational performance in Service State Corporations in Kenya. It was
further revealed that dimension of Board Size (B=0.270, p=O.OOO), Gender Diversity
(8=0.210, p=O.O19) had significant positive influence on organizational performance of
Service State Corporations. However, it was revealed that Board Composition (8= -0.027,
p=0.806) had a negative influence on organizational performance of Service State
Corporations in Kenya. The study concludes board size and gender diversity have positive
influence on organizational performance of service state corporations in Kenya. However,
board composition bears a negative influence on organizational performance of service state
corporations in Kenya. Therefore, the study recommends that Policy should focus on
corporate governance practices, the government should intervene on the composition of the
board, address gender diversity in the board and this should be in line with the gender rule
enshrined in the constitution of Kenya (2010). Further studies can be conducted to establish
other determinants of organizational performance in Service State Corporation in Kenya
. other than board size, board composition and gender diversity. The policy makers at the
Service State Corporations may find the study key in acknowledging the extent of the
industry reforms and use the findings to improve on the governance of this industry to avoid
losses that have been experienced in the past and also currently. | en_US |
