Investigating the Role of Corporate Governance in Enhancing Organizational Performance in State-Owned Enterprises
Keywords:
corporate governance, state-owned enterprises, organizational performance, qualitative research, Iran, public sector reform, accountabilityAbstract
This study aims to explore how corporate governance practices influence organizational performance in state-owned enterprises (SOEs), focusing on the perceptions and lived experiences of governance stakeholders in the Iranian context. This qualitative research employed a purposive sampling strategy to select 25 participants from various state-owned enterprises located in Tehran, including board members, executive managers, internal auditors, and governance consultants. Data were collected through semi-structured interviews to allow for in-depth exploration of governance dynamics. Interviews continued until theoretical saturation was reached. All interviews were transcribed verbatim and analyzed thematically using NVivo software, following open, axial, and selective coding procedures to extract key themes and subthemes. Three main themes emerged from the data: (1) Governance Structure and Control, including subthemes such as board composition, ownership structure, and internal control mechanisms; (2) Strategic Orientation and Decision-Making, encompassing strategic planning, risk management, and decision-making transparency; and (3) Human Capital and Organizational Culture, involving leadership effectiveness, accountability culture, and employee participation. The study found that ineffective board oversight, politicized appointments, lack of strategic continuity, and cultural resistance to change were key barriers to performance. Conversely, professionalized governance, transparent processes, and capacity-building initiatives were identified as enablers of improved organizational outcomes. Corporate governance plays a pivotal role in shaping the strategic direction, efficiency, and accountability of SOEs. To enhance organizational performance, governance reforms must address structural, strategic, and cultural dimensions, including depoliticizing board appointments, strengthening oversight mechanisms, and fostering a performance-driven organizational culture. These insights can inform policy and practice in reforming public enterprises in Iran and similar institutional settings.
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