A strategic corporate governance framework for Malawi state-owned enterprises (SOEs)
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The objective of the study was to develop a strategic corporate governance framework that will enhance performance of SOEs in Malawi. The study followed a critical realism approach as a result, a multi-methodology and mixed design was employed. Quantitative data was collected to identify relationship among variables. This was followed by qualitative data analysis. The sample included all SOEs which had operated from 2000-2016 but excluded regulatory, financial and academic institutions. For intensive design, a multiple case study was employed through replication logic to identify mechanisms and structures in order to provide explanations to the observed performance. Data collection followed the critical realism case study method. Multiple sources of evidence were used as a data collection strategy and these included document review, interviews and use of questionnaire. Findings reveal that large power distance, cronyism and materialistic cultures are entrenched in the society and have a negative impact on corporate governance. Results further reveal that increased shareholders power and multiple principals have a negative effect on performance. On board of the directors, results show that qualified and independent boards have a positive effect on performance. However, board effectiveness was influenced by legal form and shareholders power. Findings further reveal that leverage and disclosure have a positive impact on performance. The study recommended changes to legal form and ownership arrangement. Further recommendations were made to the appointment process and operations of the boards. On disclosure, the study recommended that board should be accountable to ownership entity and National Assembly. The study has contributed to a body knowledge in terms of developing a strategic governance framework for SOEs in Malawi and within its cultural contexts.