Literature Review On The Performance Of State Owned Enterprises In South Africa

Daiser et al (2017), conducted a study aiming to provide supplementary understandings into empirical research on corporate governance of State Owned Enterprises (SOEs) by systematizing existing knowledge, pointing out challenges and barriers, and deriving specific implications for further upcoming experimental research to address the lack of empirical knowledge of this field. The qualitative research methodology was used in this study, where literature analysis approach through the system was adopted. Qualitative analysis of broad-based database queries from Web of Science and EBSCOhost to derive recommendations for upcoming empirical research on the SOEs-oriented corporate governance. The results of the analysis indicates that empirical SOE-oriented corporate governance research is increasing with lot of opportunities for future investigation and exploration. Currently insufficient of qualitative experimental research and the massive concentration on regression analysis and database of secondary data, different data sources and methods must be considered for future empirical approaches. As canonical correlation-based numerical approaches appears to be very supportive for confirmatory approaches hence in future we need more qualitative methodology researches.

While ago Thomas (2012), conducted a study titled “Governance at South African state-owned enterprises: what do annual reports and the print media tell us?”. The main purpose of the study is to track, the incidents reported of corporate governance transgressions within the five state owned enterprises in South Africa over a duration of two years. Research methodology was designed by reviewing newspaper articles and annual reports citations over the period of two years, where misconducts and wrongdoings of each SOEs was recognised and batched alongside the Organisation for economic co-operation and development’s framework of proper practice in governance for SOEs. The study has found that government appears not to have accomplished its oversight role by making sure that the sound governance within SOE’s in accordance of the best practices as governmental intervention in the day to day operation of the SOEs is apparent. While the SOEs seem to conform with governance demands externally, but compliance to self-regulated and internal governance give the impression to be inadequate. Consequently, government should ensure that the SOEs consist of boards members who operates from their own ethical frameworks and who are collaboratively to serve and guarantee that the SOEs operations are executed with integrity.

The current status of governance background in South African state owned entities (SOEs) ranges from disjointed human factors and accountability frameworks to a complicated array of SOEs typologies such as parent and subsidiaries entities. In another study conducted by Kanyane and Sausi (2015), on a study titled “Reviewing state-owned entities’ governance landscape in South Africa”. The aim of the study or an article is to do assessments on the governance landscape of the SOEs to unpick underlying irregularities, discrepancies, contradictions and conflicts by providing a convincing quarrel for opting to develop an overarching SOEs governance and unbroken statutory framework. The study used qualitative research methodology by perusal and analysing of primary and secondary data available. The study explored that the proposed unbroken legal framework and governance is not an absolute resolution of all SOEs problems, the article determine whether the alternative could comfort in reaching at a redeeming practice that would accomplish and overlap the developing and corporate aspirations of the state.