Moderating Effect of Information Technology Maturity on the Relationship between Board Attributes and Performance of State Enterprises in Kenya

Abstract

The study sought to establish the moderating effect of information technology maturity on the relationship between board attributes and performance of state enterprises in Kenya. The research used descriptive research design. The study population consisted of 130 state owned corporations by Taskforce on Corporation Reforms. A sample of 97 state owned corporations was selected using stratified random sampling. A questionnaire composed of open and closed ended questions was used to collect primary data. Quantitative data was analyzed using Statistical Package for Social Sciences (Version 24). In addition, a multivariate regression model was generated to assist in determination of the relative moderating effect of information technology on maturity on the relationship between board attributes and performance. The regression results showed that when information technology maturity was the moderating variable between board attributes and performance, board structure had the highest coefficient of 0.706, followed by board role with a coefficient of 0.623, followed by operating environment with a coefficient of 0.517, and lastly board demographics with a coefficient 0.437. The concludes that information technology maturity insignificantly moderates the relationship between board structure and performance in the state owned corporations. Also the study concludes that information technology maturity significantly moderates the relationship between board operating environment and performance in the state owned corporations. The study concludes that information technology maturity insignificantly moderate the relationship between board demographics and performance in the state owned corporations. Lastly, the study concludes that that information technology maturity significantly moderate the relationship between board role and performance in the state owned corporations. The study recommends that board of directors in state owned corporations should consider information technology maturity as it moderates the relationship between board attribute and performance of state owned corporations.