Corporate Governance Practices and Organizational Performance of National Referral Hospitals in Kenya
| dc.contributor.author | Gatimu, John | |
| dc.date.accessioned | 2025-02-03T09:47:59Z | |
| dc.date.available | 2025-02-03T09:47:59Z | |
| dc.date.issued | 2024-10 | |
| dc.description | A Research Project Submitted to the School of Law, Arts and Social Sciences in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Leadership and Governance of Kenyatta University, October 2024. Supervisor David M. Minja | |
| dc.description.abstract | Performance is a vital and critical factor in the success of any organization. Corporate governance practices play a significant role in shaping the organizational performance of institutions across various sectors. In the healthcare sector, particularly within national referral hospitals, these governance practices are especially essential. The efficiency and effectiveness of referral hospitals have a direct impact on the overall health outcomes of the population. However, national referral hospitals in Kenya face numerous challenges, including financial constraints, inadequate resources, staff shortages, and bureaucratic inefficiencies. These issues hinder their ability to deliver optimal care and services. Factors related to accountability, transparency, and active engagement of relevant stakeholders continue to impede the performance and limit the output of National Referral Hospitals in Kenya. This study aimed to examine the influence of corporate governance practices on the organizational performance of National Referral Hospitals in Kenya, specifically investigating the effects of transparency, accountability, and stakeholder participation. Additionally, the research sought to assess the moderating influence of organizational determinants on the relationship between corporate governance practices and organizational performance. The study was grounded in agency theory and stakeholder theory and adopted a descriptive research design, targeting the seven National Referral Hospitals in Kenya. The research focused on various personnel, including nursing officers, clinical officers, medical officers, nutrition officers, pharmaceutical officers, records and data officers, laboratory officers, research officers, chief executive officers, hospital administrators, heads of departments, directors and deputy directors, accounting and finance officers, biomedical engineers, procurement officers, human resource officers, public health officers, board chairs, board members, and medical doctors at these facilities. A sample size of 316 was determined based on a target population of 1,764, using a 95% confidence level and a margin of error of 0.05, as calculated using the Kothari (2004) formula. Stratified and simple random sampling techniques were employed to select the sample. To collect primary data, the researcher utilized self-administered questionnaires, key informant interviews, and observation schedules. Quantitative data were analyzed using descriptive statistics, including frequencies, percentages, mean scores, and standard deviations, while qualitative data were evaluated through thematic content analysis. Inferential data analysis involved regression and correlation analysis, with the results presented in tabular form. The study found that hospital policies and procedures are readily accessible to stakeholders, promoting clarity and transparency in governance and decision-making processes. However, it remained uncertain whether the hospital maintains a high standard of ethical conduct and integrity across its operations. The research established that staff input is valued and incorporated into hospital governance and policy formulation processes, encouraging staff involvement in decision-making. Additionally, it was uncertain whether board meetings are conducted regularly and effectively. The research concluded that all corporate governance practices examined had a significant impact on the organizational performance of National Referral Hospitals in Kenya, although the degree of influence varied. Accountability emerged as having the greatest impact on performance, followed by transparency. Participation, while still significant, was found to have the least influence on the organizational performance of these hospitals. Furthermore, the study concluded that the interplay between organizational determinants and combined corporate governance practices explains 11.1% of the variations in the organizational performance of National Referral Hospitals. The analysis yielded an F statistic of F(4, 191) = 299.441, p < 4.35E-81 < 0.05, indicating that the overall moderating influence was significant. To enhance transparency, National Referral Hospitals should establish robust communication channels to ensure that changes and updates to policies and procedures are communicated promptly to stakeholders. | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/29501 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Corporate Governance Practices and Organizational Performance of National Referral Hospitals in Kenya | |
| dc.type | Thesis |