Management perceptions regarding factors impacting privatisation of parastatals in a developing country

Abstract

Background: Worldwide, the ownership of public organisations has been transferred to the private sector through privatisation. The poor performance of public organisations has necessitated privatisation of these organisations. Aim: This article explored management perceptions regarding factors impacting the privatisation of parastatals in a developing country, namely Zimbabwe. Setting and method: A comprehensive literature study provided the theoretical framework for this research. Primary data were collected by means of a survey obtaining 301 self-administered structured questionnaires from 27 parastatals in Zimbabwe. Seven null-hypotheses were tested using advanced statistical techniques such as regression and correlation analyses. Results and conclusions: Factors identified in this study that could impact privatisation of parastatals in Zimbabwe are stakeholder consultation, stable macroeconomic conditions, government transparency and a well-developed privatisation process plan. If privatisation is implemented effectively, it could lead to increased organisational performance, effective governance and economic empowerment. It also appeared that variables such as union consultation, role ambiguity, political intervention, attractiveness to foreign investment and government commitment do not exert a significant influence on perceptions of privatisation. Practical guidelines were also provided to enhance the implementation of privatisation in parastatals.