The Impact Of Corporate Governance On The Performance Of Air Namibia

ABSTRACT

Air Namibia is a State-Owned entity that frequently appeared in the news for the one reason of poor performance. Much of the poor performance of the national airline has been attributed to weaknesses in corporate governance practices in the airline. A preliminary literature search in the area of interest revealed that limited research has been conducted in the scope of interest for the current study. Motivated by the preliminary gap identified; a public outcry regarding poor performance of the airline and the subsequent bailout by the owner, the Government of the Republic of Namibia, the current research becomes indispensable to the airline. This further justified the need to carry out the research. The study aimed to determine the impact of corporate governance on the performance of Air Namibia and to establish the factors that influence corporate governance particularly at Air Namibia. Data was collected using a mixed research method. The researcher utilised both primary and secondary data. The survey design was employed in primary data collection through the use of both structured and non-structured questionnaires. The target population included those who were involved in managing the organisation. The paper used both interpretivism and ontological philosophy in understanding the problem of corporate governance in Air Namibia. Data was analysed using frequencies, mean, percentage and standard deviation and then presented using figures tables and conclusions were drawn from there. The study established that larger boards of directors are more adept in the provision of resources. However, the study observed that larger boards are prone to more conflict among board members who make it difficult to reach agreements. The study also established that Air Namibia‟s board is composed of both genders and all stakeholders are involved in the appointment of the board. The study further established that executive directors are better placed in handling the affairs of the organisation since they have a deeper understanding of the organisation‟s operations. This makes the board more independent when the proportion of outside directors increases. The study also established that there is an audit committee and this helps the independent committees to focus on improving Air Namibia‟s competitiveness and performance. Further, the study found that the board meetings are chaired by the board members with the relevant qualifications and all meetings are relevant to Air Namibia‟s mandate.