Corporate Governance, Macro Environment and Performance of Commercial State Corporations in Kenya

Elvis Songa (), PhD Prof. Josiah Aduda () and PhD Dr. Onesmus Nzioka ()

European Journal of Business and Strategic Management, 2025, vol. 10, issue 2, 56 - 65

Abstract: Purpose: This study aimed at establishing the moderating effect of macro environment on the relationship between corporate governance and performance of commercial state corporations in Kenya. Purpose of macro environment scanning is to assist firms to know main development and impending consequences. The purpose of the study was to examine the effect of the macro environment on the relationship between corporate governance and performance of commercial state corporations in Kenya in Kenya. Methodology: The study adopted a cross sectional descriptive survey design, using a sample of 47 commercial state corporations. Hypothesis was formulated to address this objective. The study used stepwise regression analysis to test moderating effect. The results were interpreted using coefficient of determination, t test, F- test and p-values. Findings: The study found that when the moderating variable was introduced, the power of corporate governance to drive performance was enhanced. This confirmed that macro environment significantly moderated the relationship between corporate governance and performance amongst commercial state corporations in Kenya. Unique Contribution to Theory, Practice and Policy: The results of this study have contributed to theory. It is recommended that organizations improve corporate governance, scan their environment so as to improve on their performance.

Keywords: Corporate Governance; Macro Environment; Performance; Commercial State Corporations; Kenya (search for similar items in EconPapers)
Date: 2025
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