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Implementation of Corporate Governance Strategy: An Overview of Africa

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Book cover A Multidimensional Economic Assessment of Africa

Part of the book series: Frontiers in African Business Research ((FABR))

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Abstract

Corporate governance around the world differs according to the form capitalism in which it is embedded. In the United States, a corporation is governed by a board of directors, which has the power to choose an executive officer. The World Bank defines good corporate governance as a set of laws, rules, and policies which must be followed to motivate corporate sources to perform efficiently and produce a long-term economic value. The alarming rate of organizations’ failures owing to governance malpractices in developing countries coupled with the apparent failure of corporate governance within these organizations and their managements motivated this study. The objective of the study is establishing the implementation of corporate governance strategies in corporate organizations in Africa. Implementation of corporate governance strategies can be understood by using both the agency theory and the resource dependency theory. This study does an in-depth literature study by reviewing existing literature (conference reports, journal articles, and websites) on implementation of corporate governance strategies in Africa. It uses a random sample approach to study and survey existing research on the implementation of corporate governance strategies in 12 African countries. It concludes that corporate governance is the solution for global organizational problems and African countries in particular need to provide the right policies that enhance increased productivity that brings about economic growth. Corporate governance is needed to motivate the boards and managements of corporates to pursue their objectives in the interests of their companies and shareholders and for facilitating effective monitoring through the use the firms’ resources efficiently.

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Authors and Affiliations

  1. Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya

    Ambrose Kipruto Chepkwei

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  1. Ambrose Kipruto Chepkwei
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Correspondence to Ambrose Kipruto Chepkwei .

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Editors and Affiliations

  1. JCU Singapore Business School, James Cook University, Singapore, Singapore

    Jacob Wood

  2. College of Business and Economics, University of Rwanda, Kigali, Rwanda

    Olivier Habimana

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Chepkwei, A.K. (2020). Implementation of Corporate Governance Strategy: An Overview of Africa. In: Wood, J., Habimana, O. (eds) A Multidimensional Economic Assessment of Africa. Frontiers in African Business Research. Springer, Singapore. https://doi.org/10.1007/978-981-15-4510-8_10

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