Abstract
Like in most Sub-Sahara Africa, State-Owned Enterprises (SOEs) in Cameroon have a complex, overlapping and unclear management model that impacts its performance. The purpose of this study is to evaluate the effect of managerial skills on the performance of SOEs in Cameroon. Survey research design was used to collect data from top and middle level managers. The sample was drawn form 10 of the 14 SOEs that are wholly or partially owned by the state. By using purposive sampling, likert scale data was collected using questionnaires. The explanatory variables were managerial skills (conceptual, technical, interpersonal, budgeting and planning, cost control and ability to secure capital) and the outcome variable was performance. Managers were asked to rate their abilities in possessing some skills. Their opinions were also asked about the performance of the enterprises they manage. By analyzing the data using Ordinal logistic regression it was found that conceptual, technical, interpersonal, budgeting and planning skills had significant and positive effect on performance while cost control and skills to secure capital had insignificant and positive effects on performance. To improve performance, the study recommended that the government should organize skill-based training seminars for the three management levels (supervisors, middle and top managers).
Highlights
After World War II, governments created State-Owned Enterprises (SOEs) to correct market deficits, capital shortfalls, promote economic recovery and reduce unemployment [1]
Most SOEs in Africa are plagued with corporate governance issues, lack of management skills, political interferences, nepotism and transparence in operations [2]
The ologit regression results in table 11 shows that conceptual, interpersonal, planning and budgeting skills have a positive and significant effect on performance while analytical and forecasting skills have a negative and significant effect on the performance of SOEs in Cameroon
Summary
After World War II, governments created State-Owned Enterprises (SOEs) to correct market deficits, capital shortfalls, promote economic recovery and reduce unemployment [1]. As important partners in development, SOEs controlled swaths of GDP in the world. While SOEs in developed countries have good performance levels, only few in developing countries struggle to meet private sector performance levels. Those that copy well established best practices in the private sector are closing the gap in terms of competition and performance. Most SOEs in Africa are plagued with corporate governance issues, lack of management skills, political interferences, nepotism and transparence in operations [2]. Most of them do not meet their profit targets and pose serious financial pressure on state resources
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