Organizational Design for Performance Management in State-Owned Enterprises

Abstract

Countries all over the world established state-owned enterprises to ensure improved efficiency and governance. Namibia is no exception, and with the government's desire for betterment of its citizens, many SOEs were established. After two decades of independence with the realization that state-owned enterprises (SOE) were not performing well due to mismanagement, red tape, and corruption, the State Owned Enterprises Governance Act 2006 was promulgated. This act aims to provide efficient governance and monitor performance in line with the government's aspirations of augmenting SOEs performance. Adopting a mixed cross-sectional descriptive case study research design, the aim of this article is to analyze and explore the influence of selected organizational design variables on strategy implementation. Further, within the context of resources-based view and dynamic capabilities of the firm, it aims to understand the influence of performance management on overall organizational effectiveness on a service sector SOE and thereby provide a basis for optimum performance and organizational effectiveness.