Influence of Corporate Governance on Performance of Large Media Firms in Kenya

Abstract

Corporate governance concept is a global phenomenon that touches on pertinent issues in the organizations that helps organizations in achieving their long-term objectives. Both public and private institutions implement corporate governance practices to help them in enhancing their general performance irrespective of their industry. The larger media firms in Kenya have also not been left behind with regard to corporate governance and firm performance. This study therefore sought to determine the influence of corporate governance on organizational performance of large media firms in Kenya. The study utilized descriptive research design. The independent variables of the study included board size, board diversity, board independence and number of board committee meetings while the dependent variable was organizational performance of large media firms in Kenya. The study population was 15 respondents from the 5 large media firms in Kenya thus a census. Data was collected using research questionnaires as a tool to collect primary data. Data was then coded after grouping them, analyzed using descriptive statistics and regression analysis. From the study findings, it was established that the respondents partially agreed that board size influenced organizational performance. Other respondents agreed that board diversity, board independence and number of committee influence organizational performance of large media firms in Kenya. The findings are consistent with the resource dependence theory.The theory states that management is an important linkage between a firm and its important resources in optimization of its performance. The board is therefore regarded as an important resource for firm interactions with the external environment like access to finances, customers, suppliers and personnel. This depends with the capacities of the management and their networks. The board therefore provide access to their networks, expertise and other capabilities. This in turn facilitates inward flow of information and cooperation.