Corporate Governance Practices and Performance of Faith Based Health Facilities in Nyanza Region

Abstract

The lstudy lsought lto lfind lout lthe lrelationship lbetween lcorporate lgovernance lpractices land lperformance lof lfaith lbased lhealth lfacilities lin lNyanza lregion. lThe lgoal lof lthe lstudylwaslguidedlbylthe lfollowinglcorporatelgovernancelpractices;lboardlcomposition, lsize lof lthe lboard, lboard lsub-committees, lCEO lduality land lthe lfrequency lboards’ lmeetings. lThe lstudy lemployed la lcross-sectional lsurvey ldesign lto lestablish lthe lrelationship. lThe lstudy lfound lout lthat l93.5% lof lthe lfaith lbased lhealth lfacilities lin lthe lNyanza lregion lhad lsub-committees, l67.7% lof lthe lfacilities lhad la lboard lsize lof l7-8 lwhile l74.2%loflthe lfacilitieslhad lquarterlylboardlmeetings. lThe lstudyladoptedlBalance lscorecard ldeveloped lby lKaplan land lNorton lto lmeasure lorganizational lperformance. lThe lstudy lfound lout lfinancial lperspective lof lperformance lhad lhigh lcorrelations lwith lcorporate lgovernance lpractices l(R=0.621) lwith l38% lof lfinancial lperformance linfluenced lby lthe lcorporate lgovernance lpractices. lInternal lbusiness lprocesses lperspectives lalso lhad lhigh lcorrelations lwith lcorporate lgovernance lpractices lhowever lbothlthelcustomers’lperspectiveslandlinnovation, llearninglandlgrowthlperspectiveslhad llow lcorrelations lwith lcorporate lgovernance lpractices. lThe lstudy ltherefore lconcluded lthat lthe lcorporate lgovernance lpractices laffected lperformance lof lfaith lbased lhealth lfacilities lalthough lat la lvaried ldegree. lThe lregression lanalysis lshowed lthat lthere lwas la lpositive linfluence lof lcorporate lgovernance lpractice lon lthe lperformance lof lthe lfaith lbased lhealth lfacilities lin lNyanza lregion. lThus lthe lpractice lof lgood lcorporate lgovernance lenhance lperformance lof lfaith lbased lhealth lfacilities. lThe lstudy lrecommended lthat lthe lsecretariats loflthe lfaithlbased lhealthlfacilities lshould lestablishla lclear lpolicies lon lthe lterms lof lengagement lof lthe ldirectors, lCEO land lperformance lappraisal lof lthe lboard lto lcheck lon ltheir leffectiveness. lThe lboard lshould lalso lbe lgiven linductions land lcontinuous lprofessional ltrainings lto lequip lthemlwith lnew ltechniques. lThe lstudy lsuggested lthat lanother lstudy lbe lconducted lto lascertain lthe linterconnection lbetween lthe lcorporate lgovernance lpractices land lperformance lof lhealth lsector lin lKenya.