Corporate governance and the small and medium enterprises sector: theory and implications
Abstract
Purpose
The purpose of this paper is to identify the extent to which the corporate governance framework can be applied to small and medium enterprises (SMEs), and discuss these issues further within the Ghanaian context.
Design/methodology/approach
After considering some of the key issues, the paper shows how relevant these issues are to the SME sector.
Findings
It is clear that corporate governance brings new strategic outlook through external independent directors and enhances firms' corporate entrepreneurship and competitiveness. Again the problems of credit constraint and managerial incompetence in the Ghanaian SME sector could also be overcome with a good corporate governance structure in place.
Research limitations/implications
The discussion mainly focuses on corporate governance within the context of Ghanaian SMEs.
Originality/value
This paper provides conceptual insights on the application of corporate governance among SMEs.
Keywords
Citation
Abor, J. and Adjasi, C.K.D. (2007), "Corporate governance and the small and medium enterprises sector: theory and implications", Corporate Governance, Vol. 7 No. 2, pp. 111-122. https://doi.org/10.1108/14720700710739769
Publisher
:Emerald Group Publishing Limited
Copyright © 2007, Emerald Group Publishing Limited