Sandra Perks, Janine Krüger, Lameck Odada
Abstract
Small and Medium Enterprises including SOEs disregard the importance of corporate governance. However, practising corporate governance is vital in ensuring long-term economic performance of businesses and countries especially if managing in the international and multifaceted environment. No comprehensive conceptual model exists that include corporate governance determinants from a global perspective without favouring either the Anglo-American or Continental-European models. In addition, limited evidence exists regarding the corporate governance determinants applicable for SOEs while there is lack of focus on the development of a conceptual model to test the relationship between corporate governance determinants and effective non-financial business performance.
A qualitative desk multi-theory research approach was adopted in this study. Extant literature studies from both company and SOE perspectives were included as the application of corporate governance principles in SOEs is still under-research in developing countries. The inclusion of corporate governance determinants that were considered in company context in the proposed conceptual model also increased the generalisability of the findings beyond SOEs. The proposed conceptual model was developed by including determinants regardless of the favoured corporate governance models, whether being conducted amongst companies or SOEs, or within a developing or developed country.