Trust loss in Tanzanian Parastatal organisations: Causes and consequences to the governance mechanisms

Abstract

Creating and maintaining a culture of trust between individuals and institutions is inevitable for the effectiveness of actors/people aiming toward achieving a common mission. The purpose of this paper is to provide insights on the causes and consequences of loss of trust among actors in the governance mechanisms of Tanzanian parastatal organisations. Based on qualitative data, collected and analyzed through grounded theory procedures, the study reports that four categories namely, fairness of decision makers, competence of actors, neutrality of actors, and contextual factors are the main causes of loss of trust among governance players in the parastatal sector in Tanzania. Increase in monitoring costs, lack of commitment of actors, and absence of free information exchange emerged as the major consequences of loss of trust of actors in the parastatal sector in Tanzania