Corporate Governance Practices and Performance of Mission Hospitals in Nairobi City County, Kenya
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Date
2023
Authors
Kariuki, Berinda C. Mwende
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Corporate governance is a system that affects both the organizational structure and
day-to-day activities, and it is crucial to the entity's efficient and effective functioning.
Mission Hospitals have been seen to experience challenges such as employee
turnover, frequent change in management, lack of employee autonomy, boycotts,
increased lead time in procurement and tendering, low number of employee
innovations, increased resistance to change and go slows. This study therefore sought
to examine the effect of Corporate Governance Practices on Performance of Mission
Hospitals in Nairobi City County. To achieve that, the objectives employed were: to
establish the effect of board size, board independence, accountability system enforced
and board responsiveness on the performance of Mission Hospitals in Nairobi City
County. The study was anchored on Agency Theory and Balance Score Card Model.
Questionnaires were used with an aim to obtain data from the Top-Level Management
and the Middle Level employees. This research used descriptive survey design and
there were 240 respondents drawn from 15 Mission hospitals in Nairobi City County.
In this research, stratified random sampling was adopted so as to break down the
population into smaller groups that are representative of the larger population.
Cronbach’s coefficient Alpha score was computed to make sure that the instrument is
reliable. Descriptive statistics, such as frequency distributions, percentages, means,
and standard deviations, were utilized to describe the data obtained during data
analysis and presentation, and the findings were presented using tables and figures.
For inferential statistics, the study utilized regression analysis for the research
questions derived from objective one to four. Regression analysis was also used to
ascertain the degree of significance in relation to corporate governance practices and
performance of mission hospital in Nairobi City County. The outcome of the study
showed that board size had positive and significant effect; board independence had
significant positive effect; accountability system had a significant and direct positive
effect while board responsiveness had a positive and significant effect on the
performance of Mission Hospitals in Nairobi City County. To this end, the study
suggests that in order to increase the board size's efficacy and efficiency, a
comprehensive screening procedure should be implemented to ensure that a high
degree of expertise is considered when the mission hospital's board is selected. This
ensures that the hospital's decision-making process is quick and that the hospital's
performance is improved. Through this study, the Mission Hospitals' Performance
will be enhanced by the decisions made by policymakers, who will ensure better and
more effective use of the limited resources at their disposal. The findings provide an
explanation of the performance of Mission Hospitals in Kenya, adding to the arsenal
of policy tools already available.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the
Requirements for the Award of the Degree of Master of Business Administration (Strategic Management)
Kenyatta University, June 2023.
Keywords
Corporate Governance, Mission Hospitals, Nairobi City County, Kenya