Exploring board composition and humanistic management in developing countries' State-Owned Enterprises

https://doi.org/10.35912/ijfam.v6i4.2348
Published: Apr 30, 2025

Abstract:

Purpose: This study examines the impact of board composition on the humanistic management performance of Zimbabwean State-Owned Enterprises (SOEs). This study examines four essential factors of board composition–board diversity, board tenure, board size, and board committees—to determine their influence on governance and performance in SOEs.

Methods: A descriptive research design with an interpretative qualitative approach was adopted. Data were collected from Zimbabwe General Auditor Reports (2016-2022) and semi-structured interviews with 20 SOE directors. Thematic analysis was used to identify patterns and develop insights into the relationship between board composition and humanistic management performance.

Results: The findings revealed that political interference, inadequate board evaluation, and the appointment of unqualified directors negatively affect board composition, limiting SOEs' ability to achieve humanistic management outcomes. Despite the existence of governance frameworks, these challenges hinder effective decision-making, transparency, and strategic alignment with humanistic management principles.

Conclusions: The study concludes that board size does not affect the humanistic management performance of the board.

Limitations: The study is limited to Zimbabwean SOEs, which may affect the generalizability of the findings to other developing economies. Additionally, reliance on qualitative methods introduces the possibility of subjective biases despite rigorous thematic analysis.

Contribution: This study recommends that Parliament Portfolio Committees strengthen their oversight role in board appointments to enhance governance and performance. It also advocates adopting a Humanistic Governance Framework to improve transparency, accountability, and efficiency while reducing corruption in Zimbabwean SOEs.

Keywords:
1. Board Composition
2. Humanistic Management Performance
3. Audit Report
4. State Owned Enterprises
Authors:
1 . Kudakwashe Zvitambo
Midlands State University, Zimbabwe
2 . Prisca Magodhini
Midlands State University, Zimbabwe
3 . Sharon Masinire
Midlands State University, Zimbabwe
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How to Cite
Zvitambo, K., Magodhini, P., & Masinire, S. (2025). Exploring board composition and humanistic management in developing countries’ State-Owned Enterprises. International Journal of Financial, Accounting, and Management, 6(4), 601–613. https://doi.org/10.35912/ijfam.v6i4.2348
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Issue & Section
Vol. 6 No. 4 (2025): March
Articles
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References

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    Alie, M. S., Fitri, E. R., Desmon, D., Nasir, M., & Meidasari, E. (2024). The Influence of good corporate governance on the financial performance of state-owned enterprises listed on the Indonesia Stock Exchange. Journal of Multidisciplinary Academic Business Studies, 2(1), 97-110. https://doi.org/10.35912/jomabs.v2i1.2507

    Alim, M. Z. (2023). The role of waste banks in realizing good environmental governance in Bandar Lampung City. Journal of Governance and Accountability Studies, 3(1), 51-61. https://doi.org/10.35912/jgas.v3i1.1804

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    Brigitta, J. (2017). Performance in Strategic Sectors: A Comparison of Profitability

    Chandra, R., Satriawan, B., & Dewi, N. P. (2024). Influence of integrity, independence and competency on audit quality with auditor performance as an intervening variable in inspectorate of the Riau Island. Journal of Multidisciplinary Academic Business Studies, 1(4), 899-914. https://doi.org/10.35912/jomabs.v1i4.2381

    Chang, S.-J., & Jin, S. Y. (2016). The performance of state-owned enterprises in China: An empirical analysis of ownership control through SASACs. Institute of Management Accountants.

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    Hyarat, H. I., Husin, N.M., & Jos, R. A. (2024). The impact of the Board of Directors on Companies’ performance: The moderating role of ownership concentration.

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    Kumar, A., & Li, W. (2023). Functional committees and financial oversight in public enterprises: A cross-country analysis. Journal of Financial Reporting and Accounting.

    Kwon, S.-H., & Kim, J. (2017). Efficiency versus public good: Electricity privatization in South Korea. Asian Perspective, 41(2), 185-214. 10.1353/apr.2017.0010

    Liu, X., Tang, X., & Wong, T. (2022). Revisiting board size and its impact on firm performance: Evidence from Asia-Pacific corporations.

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  3. Agyei-Mensah, B. (2023). Board size and strategic decision-making: Balancing diversity and functionality.
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  26. Kim, H., Nguyen, T. T., & Le, H. L. (2023). Tenure policies and board renewal in public enterprises.
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  30. Magnanelli, B. S., Paolucci, G., & Pirolo, L. (2021). Diversity in boardrooms and firm performance: The role of tenure and educational level of board members. CORPORATE BOARD: ROLE, DUTIES & COMPOSITION, 17(3), 31-41.
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  33. Mudaly, V., & Zvitambo, K. (2017). Humanistic management philosophy in governance in the taxi industry in South Africa. PONTE International Journal of Science and Research, 73(5). 10.21506/j.ponte.2017.5.36
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  47. Rahman, H., Ahmed, N., & Karim, M. (2023). Humanistic management practices in public enterprises: Case studies from developing economies.
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  52. Sibanda, M. (2017). Parastatals incur $270m loss: Audit •Weak corporate governance cited •‘Most entities technically insolvent’
  53. Szarzec, K., Dombi, Á., & Matuszak, P. (2021). State-owned enterprises and economic growth: Evidence from the post-Lehman period. Economic Modelling, 99, 105490. https://doi.org/10.1016/j.econmod.2021.03.009
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