Unmasking the influence of corporate controls on organisational performance during strategy implementation: A case of eight South African public entities

Abstract

Notwithstanding the key role played by the entities, they are currently experiencing performance challenges. For example, in his presentation to the Portfolio Committee on Public Enterprises in Parliament, the SA Public Enterprises minister stated that the challenges Background: Nonalignment and failure of implementation of corporate and business level strategies are negatively influencing organisational performance in South African (SA) public entities. This influence is moderated by corporate controls. Yet little is known as to whether corporate controls influence the organisational performance and service delivery during strategy implementation in the public entities that are situated in the Northern Cape province. Hence, this study was intended to fill this gap.Aim: To examine the influence of corporate controls on organisational performance during the implementation of strategy in the Schedule 3 public entities that are situated in the Northern Cape province. Setting:The setting involves public entities at the local, provincial and national levels, in terms of corporate controls, legal framework, linkages and especially performance, as well as service delivery as it relates to the topic and political dynamics.Method: A concurrent mixed methods design was used. A purposive sample of 11 executives of the public entities and government departments was interviewed to collect qualitative data, complemented by content analysis of the relevant official strategic documents. A questionnaire was used to collect quantitative data from a probability sample of 38 executives. The qualitative data were categorised into themes, patterns and trends around which narratives were written, and multiple regression was used to analyse the quantitative data.Results: Findings established that corporate controls affect strategy implementation positively during strategy implementation. This in return positively effects the organisational performance of the public entities. Conclusion:The inadequate corporate controls in the public entities affect the strategy implementation negatively because of the financial and human capital inadequacy and/or lack of human resources and working in silos. This results in unsatisfactory organisational performance and service delivery.