Board Diversity and Performance of State-Owned Enterprises in Transport Service Sector in Zimbabwe

Abstract

The main aim of the study was to assess the effect of board diversity and performance of state-owned enterprises (SOEs) in transport service sector in Zimbabwe. The research adopted mixed methods approach rooted in the pragmatism paradigm. Probability sampling (simple random) was used to determine respondents for the quantitative data while non-probability sampling (purposive) was used to determine the participants to provide the qualitative data. The population of the study was 30 respondents focusing on board members, senior managers and middle managers in 8 parastatals. However, the research sample size were 28 respondents as 
justified by using Krejcie and Morgan (1970) Table of sample size calculation. Both structured questionnaires and an interview guide were used to solicit data where descriptive statistics were used to analyse quantitative data and thematic analysis for qualitative data. The study results showed that SOEs boards with a blend of board members of different age groups, varied gender and diverse professional qualifications and experience allow continuity and exchange of diverse ideas which, in turn, could result in improved organisational efficiency, hence improved firm performance. However, from the results of the study, there exists adequate evidence that board diversity and experience are a critical determinant of performance of SOEs in the transport sector in Zimbabwe. Premised on the findings of this scholarship, the following recommendations were made. Relevant line ministries should come up with a policy framework that enforces the appointment to the board of individuals with proven relevant and diverse experience in leading organisations at the senior level. Therefore, a key potential future 
area for further research would be a replication of the study in the same sector focusing on the impact of board policy on service delivery. This would, in turn, enhance the generalisability of the findings to SOEs in other emerging markets that are facing the same performance challenges linked to board composition.