An Analysis of the Impact of Corporate Governance Characteristics on the Firm Performance in SMEs. A case of Harare urban.
- Author
- KASASA, JEPHTHER. RUKUDZO
- Title
- An Analysis of the Impact of Corporate Governance Characteristics on the Firm Performance in SMEs. A case of Harare urban.
- Abstract
- The research study’s aim was to evaluate the impact of corporate governance characteristics on the firm performance of small and medium-sized businesses (SMEs) in Harare, Urban. The principal objective was to determine how corporate governance would affect the firm performance of SMEs. The ancillary objectives were to determine the nexus ethical practices have on the performance of SMEs; to survey the magnitude to which ownership structures enhance SMEs’ firm performance; to identify the effect of control systems on firm performance in SMEs; and to assess the impact of the intensity of board activities on firm performance. The current research used descriptive and explanatory research designs to address the problem. The study employed a convenience sampling technique. In this quantitative study, the researcher self-administered 100 questionnaires to SMEs in Harare, of which 87 were returned. The data was analysed using the SPSS package. The findings showed that ethical practices had a positive impact on firm performance and aspects such as smooth operations, competitiveness, customer loyalty, and lower transaction costs. In addition, the findings showed a positive relationship between ownership structure and firm performance. Furthermore, the findings indicated that control systems had a positive impact on firm performance through improved aspects such as safeguarding company resources and the separation of tasks. The findings proved the intensity of board activity had a positive influence on the dependent variable through aspects such as improved manager assessment and improved proactivity. Overall, corporate governance had a positive impact on the firm performance of SMEs. The findings led to the conclusion that corporate governance is a predictor of the outcome of firm performance in SMEs. The research recommended that the characteristics in this study should be implemented by SMEs. Further recommendations were that SMEs should adopt corporate governance characteristics that are more accurate to their size and sector.
- Date
- 2022
- Publisher
- BUSE
- Keywords
- Corporate governance
- SMEs
- Supervisor
- N/A
