Corporate governance and organisational performance in state-owned transport enterprises: An integrated model development perspective

Abstract

This study explores the relationship between corporate governance and organisational performance within state-owned enterprises (SOEs) in the Zimbabwean transport sector, with the objective of developing an integrated and contextually relevant governance-performance model. Despite their critical role in facilitating mobility and supporting trade, SOEs such as Air Zimbabwe and Zimbabwe United Passenger Company (ZUPCO) continue to experience persistent challenges, including financial deficits, operational inefficiencies, and declining service delivery standards. Existing scholarship tends to examine corporate governance in isolation, often overlooking the broader organisational and institutional contexts within which these enterprises operate. Adopting a mixed-methods research design, this study integrates quantitative analyses, comprising descriptive statistics, correlation, regression, and moderation techniques, with qualitative insights derived from interviews. The research is underpinned by a multi-theoretical framework that incorporates the resource-based view (RBV), institutional theory, systems theory, and contingency theory. The findings reveal that corporate governance plays a pivotal role in influencing organisational performance, alongside key internal factors such as human capital, technological capability, organisational culture, leadership, and the external operating environment. These elements collectively affirm the multidimensional nature of organisational performance. However, the study also finds that political interference significantly undermines the positive impact of governance structures and organisational capabilities. The study makes a theoretical contribution by advancing an integrated governance-performance model, while empirically highlighting the moderating effect of political interference. From a practical standpoint, the findings underscore the importance of comprehensive reforms in SOEs that prioritise strengthened governance frameworks, reduced political intrusion, and enhanced organisational capacity.