Developing a Compliance Index to Improve the Performance of Major State-Owned Enterprises: An Analysis of South Africa

Abstract

Performance evaluation frameworks are essential for monitoring and enhancing the performance of state-owned enterprises (SOEs). Nonetheless, the existing frameworks exhibit particular deficiencies in delivering a comprehensive assessment of SOE performance or facilitating significant improvement. This study developed a comprehensive compliance index (PCI) to measure SOE performance. The PCI was developed through a systematic and integrative review of the current performance frameworks and refined using the Delphi technique via an online questionnaire. This study contributes to public sector performance evaluation research by offering a more integrated tool that captures the full scope of SOEs’ performance, including financial, non-financial, and developmental dimensions, based on the South African context. It is recommended that policymakers, especially the National Treasury, promote the adoption and use of the PCI to assist SOEs in assessing, monitoring, and improving their performance.