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Performance of SOEs: evidence on Botswana Telecommunications Corporation

Performance of SOEs: evidence on Botswana Telecommunications Corporation PurposeThe purpose of this paper is to investigate fundamental performance drivers in a state-owned enterprise (SOE) in the context of organizational theories.Design/methodology/approachThis paper is based on a case analysis investigating how several factors, considered in the context of organizational theories, have combined to influence sustained performance at the Botswana Telecommunications Corporation (BTC). The study analyses both quantitative and qualitative data pertaining to an 18-year period from 1995 to 2012.FindingsThe paper supports the widely held view that agency and resource-based theories explain good performance, but challenges the popular view that political influence is always self-interest driven. A concept of positive public choice, under which such influence is driven by stakeholder interests and sustainability emerges. The case reveals that a selective approach to stakeholders defined how BTC crafted its good performance in a politically conducive environment.Practical implicationsBased on the research findings, a framework unifying political intervention with stakeholder interests needs to be developed and formalized with a link to SOE objectives. The framework would have clear performance measures linked to it, adequately monitored under a governance structure constituted from well-incentivized boards and managers with adequate strategic corporate resources under their control. The paper proposes such a framework.Originality/valueThe paper reveals an unexplored area of potential research, i.e. a positive public choice perspective under which societal interests are modeled with enterprise sustainability through political processes often blamed for poor performance. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Social Economics Emerald Publishing

Performance of SOEs: evidence on Botswana Telecommunications Corporation

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References (75)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0306-8293
DOI
10.1108/IJSE-01-2016-0005
Publisher site
See Article on Publisher Site

Abstract

PurposeThe purpose of this paper is to investigate fundamental performance drivers in a state-owned enterprise (SOE) in the context of organizational theories.Design/methodology/approachThis paper is based on a case analysis investigating how several factors, considered in the context of organizational theories, have combined to influence sustained performance at the Botswana Telecommunications Corporation (BTC). The study analyses both quantitative and qualitative data pertaining to an 18-year period from 1995 to 2012.FindingsThe paper supports the widely held view that agency and resource-based theories explain good performance, but challenges the popular view that political influence is always self-interest driven. A concept of positive public choice, under which such influence is driven by stakeholder interests and sustainability emerges. The case reveals that a selective approach to stakeholders defined how BTC crafted its good performance in a politically conducive environment.Practical implicationsBased on the research findings, a framework unifying political intervention with stakeholder interests needs to be developed and formalized with a link to SOE objectives. The framework would have clear performance measures linked to it, adequately monitored under a governance structure constituted from well-incentivized boards and managers with adequate strategic corporate resources under their control. The paper proposes such a framework.Originality/valueThe paper reveals an unexplored area of potential research, i.e. a positive public choice perspective under which societal interests are modeled with enterprise sustainability through political processes often blamed for poor performance.

Journal

International Journal of Social EconomicsEmerald Publishing

Published: Jul 10, 2017

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