| dc.description.abstract | Autonomy is the quality of state of being self-governing, especially the right or power of self-government, existing or capable of existing
independently, and subject to its laws only. In other words, the issue is one of “degree of autonomy rather than an absolute autonomous
state.” While autonomy has led to improvement of financial accountability for the nature and quality of services provided by commercial
state corporations, the change of government funding to block grants has been accompanied by responsibility and financial accountability
of state corporations, who have typically responded with more timely, detailed, and accurate financial statement. The aim of this study was
to establish the level of autonomy of commercial state corporations in Kenya, in relation to their financial performance. The population of
the study comprised of all commercial state corporations in Kenya, numbering thirty one. The study was descriptive in nature and a census
method was used since there are only a few commercial state corporations in Kenya. Descriptive survey design was preferred because it
enables the researcher to describe the area of research and explain the collected data in order to properly investigate the differences and
similarities. The research instrument used to collect primary data were questionnaires through the drop and pick method. The response
rate was 77% that is a total of 24 outof31 respondents obliged to the research questionnaires. Overall, it was found that autonomy increases
public accountability and consumer satisfaction. Many respondents felt that autonomous state corporations, vested with greater authority
were in a better position to respond to stakeholder needs. They also felt that autonomy is likely to lead to improvements in the quality of life
for citizens, and that greater autonomy when accompanied by appropriate incentives, consumer responsiveness, and public accountability
would lead to optimal financial performance. The findings indicated that most respondents felt that autonomy of state corporations was
influenced to a large extent by political intervention and control on it business undertakings, and still to a very high extent as compared to
when there was full control by the government. The research was summarized from the findings that a widely used government control on
corporation is government ownership as well as resource decisions whereby the government makes decisions on hiring and firing of senior
managers of these commercial state corporations. This study has revealed the effect of autonomy of financial performance in commercial
state corporations in Kenya. It has investigated the level of autonomy of commercial state corporations in Kenya which identified
explanatory variables which lead the explained variance in the dependent variable, the financial performance. The data collected was
presented using descriptive statistics and analyzed using multivariate regressions. In the light of the research findings, the researcher
recommends what needs to be done to improve the corporation’s financial performance with regards to autonomy from the government.
The government should give the corporation’s the leeway to make decisions on investment and expansion as well as implementing day - today
business activities. On the other hand the government should provide clear information and performance feedback, increase incentives
and motivations among corporation employees. Again, the government should propose strategic direction, leadership, capacity building,
reorganization and restructuring of commercial state corporations. This study will be helpful to managers and decision makers in that they
will make informed decisions on the level of autonomy to adopt in their teams since the decision to grant teams or employees' autonomy is
associated with costs and benefits. For example eliminating supervisory roles by shifting the organizational structure from hierarchical to
horizontal could reduce costs. On the other hand, such a shift involves a sacrifice of control by management, and it is easy to imagine
contexts in which this would be undesirable while putting in mind that autonomy is enhanced worker motivation. Since autonomy makes
the process of financial accountability for the nature and quality of services provided by organizations stakeholders will use make the
accompanied responsibility to demand for more timely, detailed and accurate financial statement from state corporations. The findings of
this study are beneficial to policy makers owing to the fact that most financial performance measures of State-owned enterprises in the
country have assumed a more diverse role as a result of reform programmes which have introduced greater degrees of operating
management autonomy, market responsibility and profit sharing incentives at the enterprise level. This paper is important since there is
witnessed changing role of accounting performance criteria in meeting the needs of operating managers of State enterprise who have an
increased decision-making autonomy. At the same time the study will be helpful for practical and conceptual solutions ensuring that the
needs of government corporations are maintained for financial performance criteria related to economic planning and control. The findings
of this study will enrich existing knowledge and hence will be of interest to both researchers and academicians who seek to explore and
carry out further investigations. It will provide basis for further research in terms of concepts, methodology and theoretical review. | en_US |
