An investigation of factors influencing the performance of State Owned Enterprises in Namibia: Comparative cases of Roads Construction Company and Roads Authority
Loading...
Date
2019
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of Namibia
Abstract
This study undertook a comparison on the performance of two SOEs in Namibia. The
main aim of the study was to find out the factors that contribute to success and failure of
SOEs. Thus, the researcher identified the Roads Authority as one of the well performing
and successful SOEs with the Roads Construction Company representing the non performing SOEs. These SOEs were selected since they operate in the same industry but
have been performing differently. The study chose a case study research design and the
qualitative research method was used. A sample of 50 participants from both SOEs was
used and it was selected from the middle and senior management. Interviews with semi structured questions in the interview guide were used to gather data. From the data
collected it was found that the success behind the Roads Authority was as a result of good
management, good corporate governance, effective internal control systems, transparency
and accountability. On the contrary the failure of the Roads Construction company was
due to these attributes, i.e. mismanagement, lack of transparency, lack of accountability,
corruption, nepotism, and poor corporate governance. It was further noted that the
management at RCC was not focused on achieving organisational goals but rather to serve
self-interests. Malpractices in recruitment were also reported, leading to some of the
managers holding senior positions not having the required qualifications and expertise to
hold such posts. However, the research found out that the government is very supportive
of SOEs and always bails out those non-performing SOEs. Finally, the research
recommended the board of directors to take an active role to ensure the success of the
SOEs in particular the RCC. The board is the focal point and plays an important role in
ensuring adherence to the policy and vision of the company. They are responsible for
providing the-vision as well as recruitment of the right staff that can drive the organisation
towards the attainment of organisational goals.
Description
A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration (Management Strategy)
Keywords
Roads Construction Company (RCC), Roads Authority (RA), State Owned Enterprises in Namibia, Perfomance appraisal, University of Namibia, Namibia