The Impact of Corporate Governance Principles on the Performance of Medical Aid Societies: A Case Study of the PSMAS Group in Zimbabwe.

Abstract

Most businesses' ability to survive and grow, particularly those in the service industry, depends heavily on their ability to provide services. In most, if not all, firms, corporate governance is one of the most important components in ensuring exceptional service quality. This study examined how PSMAS's performance - or more specifically, its service delivery - was affected by corporate governance principles. The study used both quantitative research design. A combination of descriptive statistical and regression analysis was used to determine the impact of corporate governance principles on performance at PSMAS. The findings from this study indicated that there is poor performance (service delivery) at PSMAS in general. Moreover, the study found that amongst corporate governance principles it is fairness and accountability that have positive impact in the determination of service delivery at PSMAS. However, the current engagement of transparency and responsibility have had a negative effect on performance on appropriation on service delivery at the institution while revenue growth and reduction in member termination seem to be highest scores still below average hence there is need for improvement. Based on the findings of the study it was concluded that the poor service delivery could be due to inefficient appropriation of corporate governance principles at PSMAS. The study, therefore, recommends that decision makers at PSMAS to consider investment in quality control and assurance. They should also focus more on financial strategy, internal controls and claims obligations aspects of financial management practice when formulating decisions meant to improve service delivery at PSMAS to enhance card acceptance by service providers and grow the market share.