Examining Malfeasances Behind the Underperformance of State Entity Boards in Zimbabwe

Abstract

Public entities in Zimbabwe have been experiencing frequent corporate failures that are attributed to endless scandals that include embezzlement of funds, unscrupulous rewarding of tenders and nepotism. The primary objective of the study was, therefore, to examine the malfeasances that contribute to poor corporate performance among state entity boards in 
Zimbabwe. The Agency Theory and Political Theory informed the study. The pragmatism research philosophy, mixed research approach and cross-sectional survey research design were adopted. The study population comprised permanent secretaries, CEOs, executive and non-executive directors from all public entities across Zimbabwe. A sample of 261 participants was used for collecting quantitative data and 25 participants for collecting qualitative data. The stratified sampling and purposive sampling techniques were applied to sample quantitative and qualitative data respectively. Semi-structured questionnaires and in-depth personal interviews were applied to collect and generate data from participants. The study established that poor recruitment procedures and board inefficiencies were behind the underperformance of public entities. The results indicated that government policy on how public entities are governed indeed moderates the relationship between board malfeasances and corporate performance. The respondents urged the government to transform the public entities by applying stern measures to curb corruption and employing the right people to boards.