Email this article 
Hide
Show all
Original Research
The impact of corporate governance on firm competitiveness and performance of small and medium enterprises in South Africa: A case of small and medium enterprises in Vanderbijlpark
Submitted: 23 October 2016 | Published: 20 October 2017
About the author(s)
Progress Hove-Sibanda, Department of Transport Economics and Logistics Management, North West University, South AfricaKin Sibanda, Department of Economics, University of Fort Hare, South Africa
David Pooe, Department of Business Management, University of Johannesburg, South Africa
Abstract
Research purpose: This study seeks to examine the impact of corporate governance adoption on the firm competitiveness and performance of SMEs in Vanderbijlpark.
Research design, approach and method: The study employs a cross-sectional research design, which employed quantitative methods. One hundred fifty-two SME owners or managers were selected from Vanderbijlpark in Gauteng, South Africa. The collected data were analysed using a structural equation modelling system by using Smart PLS software.
Main findings: The principal findings of this study revealed that the implementation of corporate governance by SMEs significantly and positively affected their competitiveness and performance.
Practical and managerial implications: The paper provided practical implications and made some recommendations.
Contribution or value-added: This article bridges the gap between theory and practice because it has both an economic and commercial impact in practice. It can be used in influencing public policy, teaching and research (because it contributes to the body of knowledge, particularly regarding SME corporate governance in emerging markets). An important aspect of this article is that it gives a framework for additional similar studies in other locations within emerging markets to test the generalisability of the findings. For teaching purposes, it provides a template for how to assess the link that exists between corporate governance and SME performance. Lastly, the article gives a unique empirical analysis of the relationship that exists between corporate governance compliance and performance of firms in South Africa, and thereby giving a valid contribution to corporate governance literature.
Keywords
Metrics
Total abstract views: 5874Total article views: 8621
Crossref Citations
1. Can logistics enterprises improve their competitiveness through ESG in the context of digitalization? Evidence from China
Mingyue Fan, Yue Tang, Sikandar Ali Qalati, Blend Ibrahim
The International Journal of Logistics Management vol: 36 issue: 1 first page: 196 year: 2025
doi: 10.1108/IJLM-05-2023-0216
2. Service system innovation and firm competitiveness in an emerging market: The role of corporate governance system
Akpan Ekom Etim, Anthony Aniagbaoso Igwe, Mamdouh Abdulaziz Saleh Al-Faryan, Ben Etim Udoh
Cogent Business & Management vol: 10 issue: 2 year: 2023
doi: 10.1080/23311975.2023.2220202
3. Topic Modelling Application for Determining Competitiveness Factors of the Small Business Firms
Muhammad Masyhuri
International Journal of Social Science and Business vol: 6 issue: 2 first page: 174 year: 2022
doi: 10.23887/ijssb.v6i2.43164
4. Modelo de gobernanza financiera para el otorgamiento de créditos en pequeñas y medianas empresas
Kléber Antonio Luna Altamirano, Christian Rolando Coronel Balderramo, Carmen Yolanda Jaramillo Calle, Glenda Maricela Ramón Poma
Revista Venezolana de Gerencia vol: 30 issue: 109 first page: 412 year: 2025
doi: 10.52080/rvgluz.30.109.26
5. Managerial ownership, board gender diversity, occupational health, and safety risk management in an emerging economy
Luke Charles Chikosi, Ashley Teedzwi Mutezo
Journal of Governance and Regulation vol: 12 issue: 1, special issue first page: 230 year: 2023
doi: 10.22495/jgrv12i1siart3
6. The Path Choice of Manufacturing Enterprises to Enhance Competitiveness
Xiekui Zhang, Yihan Huang, Yiting Li
Journal of Organizational and End User Computing vol: 35 issue: 3 first page: 1 year: 2023
doi: 10.4018/JOEUC.326932
7. Achieving competitive advantage through bricolage: A small business perspective
Abdul Jelil Abukari, Li Wenyuan, Wisdom Wise Kwabla Pomegbe, Abdul Rasheed Akeji Alhassan Alolo, Ingrid Ruth Epezagne Assamala
Business Strategy & Development vol: 7 issue: 1 year: 2024
doi: 10.1002/bsd2.310
8. Role of corporate governance in quick response to Covid-19 to improve SMEs’ performance: evidence from an emerging market
Thanh Tiep Le, Abhishek Behl
Operations Management Research vol: 15 issue: 1-2 first page: 528 year: 2022
doi: 10.1007/s12063-021-00238-4
9. The Factors Influencing the Earnings Management in Indonesian State-Owned Enterprise Listed on the Indonesia Stock Exchange from 2016-2020
Zaneta Millinea Renata, Imanuel Madea Sakti
International Journal of Social Science and Business vol: 6 issue: 3 first page: 395 year: 2022
doi: 10.23887/ijssb.v6i3.48584
10. Corporate governance of executive directors’ remuneration: Measurement and determinant analysis
Henriette E. Scholtz, George F. Nel, Eon VdM. Smit
Southern African Journal of Accountability and Auditing Research vol: 24 issue: 1 first page: 65 year: 2022
doi: 10.54483/sajaar.2022.24.1.5
11. Do sustainability innovation and firm competitiveness help improve firm performance? Evidence from the SME sector in vietnam
Thanh Tiep Le, Muhammad Ikram
Sustainable Production and Consumption vol: 29 first page: 588 year: 2022
doi: 10.1016/j.spc.2021.11.008
12. Social media and business innovation capabilities toward enhancing firm's performance: an empirical research from environmental quality approach
Thanh Tiep Le, Sukalpa Chakrabarti
Management of Environmental Quality: An International Journal vol: 36 issue: 7 first page: 1918 year: 2025
doi: 10.1108/MEQ-01-2023-0031
13. Assessing the impact of corporate governance principles on the Small and Medium Enterprises (SMEs)’ financial success in Kwa-Zulu Natal (KZN): Application of Stewardship theory
Tinaye Mahohoma
International Journal of Research in Business and Social Science (2147- 4478) vol: 13 issue: 5 first page: 19 year: 2024
doi: 10.20525/ijrbs.v13i5.3539
14. Supply chain management antecedents of performance in small to medium scale enterprises
Welby V. Loury-Okoumba, Chengedzai Mafini
South African Journal of Economic and Management Sciences vol: 24 issue: 1 year: 2021
doi: 10.4102/sajems.v24i1.3661
15. Exploring the Impact of Smart Governance and Business Capability on Business Collaboration and the Implication on Sustainable Performance of Micro Business in Belitung
Isyak Meirobie, Muhammad Idrus Taba
Journal of Law and Sustainable Development vol: 12 issue: 1 first page: e2783 year: 2024
doi: 10.55908/sdgs.v12i1.2783
16. Size matters: The market–non-market strategy nexus and firm performance in South Africa
John A. Parnell, Michael L. Troilo, Thomas Dobbelstein
South African Journal of Business Management vol: 55 issue: 1 year: 2024
doi: 10.4102/sajbm.v55i1.4273
17. Influence of corporate governance on performance of public universities in Kenya
Peter Kariuki, Beatrice Elesani Ombaka, Paul Kiumbe Mburu
International Journal of Research in Business and Social Science (2147- 4478) vol: 10 issue: 7 first page: 116 year: 2021
doi: 10.20525/ijrbs.v10i7.1402