Does the presence of governance structure affect small and medium-sized enterprise performance? Evidence from an emerging market
Objective: The objective of the article is to determine the effect of governance structure components (audit committee presence, board size adequacy, and board leadership) on SMEs’ performance and the moderating effect of chief executive officer (CEO) tenure on the influence of gove...
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| Format: | Article |
| Language: | English |
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Cracow University of Economics
2020-08-01
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| Series: | Entrepreneurial Business and Economics Review |
| Subjects: | |
| Online Access: | https://eber.uek.krakow.pl/eber/article/view/796 |
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| author | Daniel Okofo-Darteh Emmanuel Selase Asamoah |
| author_facet | Daniel Okofo-Darteh Emmanuel Selase Asamoah |
| author_sort | Daniel Okofo-Darteh |
| collection | DOAJ |
| description |
Objective: The objective of the article is to determine the effect of governance structure components (audit committee presence, board size adequacy, and board leadership) on SMEs’ performance and the moderating effect of chief executive officer (CEO) tenure on the influence of governance structure on SMEs’ performance in Ghanaian context.
Research Design & Methods: We sampled 145 respondents from selected SMEs in the Ghanaian manufacturing, telecommunication, and financial sectors for the study. All selected participants completed questionnaires on governance structure and shared their informed perception of the enterprises’ performance. The data gathered were analysed using multiple regression analysis and Hayes’ process macro.
Findings: The results indicated that board leadership, the presence of an audit committee, and board size adequacy do not significantly influence SMEs’ performance. The results further revealed that CEO tenure is a significant negative moderator to the influence of the governance structure on SMEs’ performance.
Implications & Recommendations: Future studies must focus on how SMEs in Ghana can put CEOs and board succession plans in place so as to ensure creativity/innovation.
Contribution & Value Added: This study contributes to the body of knowledge relating to the governance structure’s influence on various indicators of business performance of SMEs in Ghana. Therefore, this study sought to assess the contribution of corporate governance structures to the performance of SMEs in Ghana. This would help SMEs to know which aspects of their governance structure should be strengthened to effectively contribute to their success.
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| format | Article |
| id | doaj-art-7f15cf2b9fe547de891fc6a58310fdeb |
| institution | OA Journals |
| issn | 2353-8821 |
| language | English |
| publishDate | 2020-08-01 |
| publisher | Cracow University of Economics |
| record_format | Article |
| series | Entrepreneurial Business and Economics Review |
| spelling | doaj-art-7f15cf2b9fe547de891fc6a58310fdeb2025-08-20T01:57:35ZengCracow University of EconomicsEntrepreneurial Business and Economics Review2353-88212020-08-018310.15678/EBER.2020.080307Does the presence of governance structure affect small and medium-sized enterprise performance? Evidence from an emerging marketDaniel Okofo-Darteh0https://orcid.org/0000-0003-4524-3578Emmanuel Selase Asamoah1University of Professional Studies AccraUniversity of Professional Studies Accra Objective: The objective of the article is to determine the effect of governance structure components (audit committee presence, board size adequacy, and board leadership) on SMEs’ performance and the moderating effect of chief executive officer (CEO) tenure on the influence of governance structure on SMEs’ performance in Ghanaian context. Research Design & Methods: We sampled 145 respondents from selected SMEs in the Ghanaian manufacturing, telecommunication, and financial sectors for the study. All selected participants completed questionnaires on governance structure and shared their informed perception of the enterprises’ performance. The data gathered were analysed using multiple regression analysis and Hayes’ process macro. Findings: The results indicated that board leadership, the presence of an audit committee, and board size adequacy do not significantly influence SMEs’ performance. The results further revealed that CEO tenure is a significant negative moderator to the influence of the governance structure on SMEs’ performance. Implications & Recommendations: Future studies must focus on how SMEs in Ghana can put CEOs and board succession plans in place so as to ensure creativity/innovation. Contribution & Value Added: This study contributes to the body of knowledge relating to the governance structure’s influence on various indicators of business performance of SMEs in Ghana. Therefore, this study sought to assess the contribution of corporate governance structures to the performance of SMEs in Ghana. This would help SMEs to know which aspects of their governance structure should be strengthened to effectively contribute to their success. https://eber.uek.krakow.pl/eber/article/view/796governance structure; board size adequacy; board leadership; audit committee; enterprise performance |
| spellingShingle | Daniel Okofo-Darteh Emmanuel Selase Asamoah Does the presence of governance structure affect small and medium-sized enterprise performance? Evidence from an emerging market Entrepreneurial Business and Economics Review governance structure; board size adequacy; board leadership; audit committee; enterprise performance |
| title | Does the presence of governance structure affect small and medium-sized enterprise performance? Evidence from an emerging market |
| title_full | Does the presence of governance structure affect small and medium-sized enterprise performance? Evidence from an emerging market |
| title_fullStr | Does the presence of governance structure affect small and medium-sized enterprise performance? Evidence from an emerging market |
| title_full_unstemmed | Does the presence of governance structure affect small and medium-sized enterprise performance? Evidence from an emerging market |
| title_short | Does the presence of governance structure affect small and medium-sized enterprise performance? Evidence from an emerging market |
| title_sort | does the presence of governance structure affect small and medium sized enterprise performance evidence from an emerging market |
| topic | governance structure; board size adequacy; board leadership; audit committee; enterprise performance |
| url | https://eber.uek.krakow.pl/eber/article/view/796 |
| work_keys_str_mv | AT danielokofodarteh doesthepresenceofgovernancestructureaffectsmallandmediumsizedenterpriseperformanceevidencefromanemergingmarket AT emmanuelselaseasamoah doesthepresenceofgovernancestructureaffectsmallandmediumsizedenterpriseperformanceevidencefromanemergingmarket |