EFFECT OF BOARD LEADERSHIP COMPOSITION ON PERFORMANCE OF PUBLIC INSTITUTIONS IN RWANDA
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Abstract
This study investigated the influence of board leadership composition on the performance of public institutions in Rwanda. The problem addressed in this study revolved around the potential influence of board leadership composition on the performance of public institutions in Rwanda. Specifically, the inquiry sought understanding on how factors such as diversity and competency within board structures impact organizational effectiveness, accountability, and governance practices within the Rwandan public sector landscape. This study holds significant implications for policymakers, institutional leaders, and stakeholders in Rwanda by providing evidence-based insights into the critical role of board leadership composition in shaping the performance and governance of public institutions. By elucidating the linkages between board diversity, accountability mechanisms, and organizational effectiveness, this research offers actionable recommendations for enhancing governance practices and driving sustainable development agendas in Rwanda's public sector. The study adopted a descriptive and explorative design since its main purpose was to explain the effect of corporate board leadership practices on performance in public institutions in Rwanda. The target population for the study was 214 managers from 10 public institutions in Rwanda. Stratified random sampling technique was used to get a sample of 140 respondents who were selected from the top management and middle managers’ staff. Data for the study was collected by use of questionnaires, interviews and observation using descriptive and inferential statistics to establish the relationship between the dependent and independent variables. It was expected that the results of the study would assist the top management of the institutions, as well as other stakeholders, to understand the effect of board leadership practices on governance performance in public institutions in Rwanda. Data collected was analyzed through SPSS version 21. Data analysis involved statistical computations for averages, percentages, and correlation and regression analysis. Ordinary least squares (OLS) regression method of analysis was adopted to determine the inferential statistics. By assessing various dimensions of board structure, such as diversity, expertise, independence, and leadership styles, this research contributes to understanding how governance practices shape the effectiveness and efficiency of public institutions. The findings provide valuable insights for policymakers, organizational leaders, and stakeholders seeking to enhance governance mechanisms and optimize performance outcomes in the public sector of Rwanda. The findings revealed significant insights into the perceptions of respondents regarding the impact of board leadership composition on the performance of public institutions in Rwanda. Notably, the results indicated strong agreement among respondents regarding the positive influence of diverse skills and expertise among board members on decision-making processes. Similarly, the inclusion of independent directors is perceived to enhance board oversight effectiveness, reflecting the importance of independent oversight for governance effectiveness. Moreover, respondents recognize the importance of gender diversity on boards for fostering inclusive decision-making environments. Additionally, the understanding of industry and market trends among board members is seen to positively affect strategic planning capabilities. Regression analysis further confirms the significant relationship between board leadership composition and the performance of public institutions in Rwanda. The results indicated a positive correlation between board leadership composition and performance, with the regression model explaining up to 57.0% of the variations in institutional performance. The coefficients obtained from the regression analysis support the statistical significance of board leadership composition in explaining changes in organizational performance. Furthermore, hypothesis testing confirms the significant influence of board leadership composition on the performance of public institutions in Rwanda, as evidenced by the calculated p-value and t-statistic. Overall, the findings underscored the critical role of board leadership composition in driving organizational performance within Rwandan public institutions, emphasizing the importance of diversity, expertise, and independence in governance structures to achieve sustainable development goals. In conclusion, the findings of this study highlight the critical importance of board leadership composition in influencing the performance of public institutions in Rwanda. With strong evidence supporting the positive impact of diverse skills, gender representation, and independent oversight on organizational effectiveness, policymakers and stakeholders are urged to prioritize initiatives aimed at enhancing board diversity and governance practices to foster sustainable development and good governance within the public sector. Based on the findings, it is recommended that Rwandan policymakers prioritize initiatives aimed at promoting diversity within board leadership structures, including gender, ethnicity, and professional backgrounds, to foster inclusive decision-making environments. Additionally, efforts to enhance transparency, accountability, and stakeholder engagement mechanisms are crucial for strengthening governance practices within public institutions in Rwanda, facilitating knowledge-sharing, and driving collective action towards sustainable development objectives.
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