Corporate governance: a conscious approach for Asia and emerging economies

2016 ◽  
Vol 58 (3) ◽  
pp. 317-336 ◽  
Author(s):  
Mahmoud Rajablu
Keyword(s):  
Corporate Governance ◽  
Emerging Economies ◽  
Economic Transition ◽  
Small And Medium Enterprises ◽  
Content Type ◽  
Governance Models ◽  
Anglo American ◽  
Asian Economy ◽  
Corporate Governance Practice ◽  
Medium Enterprises

Purpose Asian economy in transition is facing great deal of challenges, so its corporate governance. This paper investigates the dominant corporate governance models practiced under the liberal market capitalism, cooperative capitalism, collective capitalism and the state capitalism across the continents and proposes conscious governance approach for Asia and emerging economies. Design/methodology/approach The paper explores and compares Anglo-American and Continental European corporate governance models. The report further investigates the development of corporate governance across Asian publicly listed companies, state-owned enterprises, small and medium enterprises and other privately held large enterprises, and raises questions and concerns and derives conclusion. Findings The Asian experience of imposing Western corporate governance models is more of a simplification of tasks based on political, cultural and globalization needs rather than the regions’ economic, financial and social development reality. Practical implications The unique proposition of conscious corporate governance aligns corporate governance practice with Asian socio-economic transition vision and helps with further development and reforms. Originality/value The paper adds to the existing efforts and triggers a fresh view to the Asian and emerging economies corporate governance research and strategy.

Implementing strategic responses in the COVID-19 market crisis: a study of small and medium enterprises (SMEs) in India

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guydeuk Yeon ◽  
Paul C. Hong ◽  
Elangovan N. ◽  
Divakar G. M.
Keyword(s):  
Emerging Economies ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Performance Outcomes ◽  
Future Research ◽  
Strategic Responses ◽  
Content Type ◽  
Study Results ◽  
Medium Enterprises

Purpose The COVID-19 pandemic presents unprecedented challenges for small and medium enterprises (SMEs) in emerging economies. This paper aims to examine how India's SMEs implement their strategic responses in this crisis. Design/methodology/approach The study uses dynamic capability theory to explore the strategic responses of SMEs. Strategy implementation theory helps to explain how they implement innovative practices for outcomes. A research model defines the COVID-19 challenges, strategic responses and performance outcomes. The study reports the findings of an initial pilot study of 75 firms and follow-up case study results in the context of COVID-19. Findings Firms choose their approaches according to their perceived market risks. Case studies illustrate that firms display diverse attitudes depending on their strategic direction, leadership vision and organizational culture. They achieve different outcomes by implementing specific styles of risk management practices (e.g. risk-averting, risk-taking and risk-thriving). Research limitations/implications Although the study context is Indian SMEs, the findings suggest meaningful lessons for other emerging economies in similar crisis events. The propositions may be extended to future research in broad contexts. Practical implications Even in the extraordinary COVID-19 market crisis, SMEs with limited resources display their strategic potential by recognizing their unique capabilities, translating them into effective actions and achieving desirable outcomes. Social implications In the COVID-19 pandemic, top leaders' mental attitude, strategic perspective and routine practices are contagious. Positive leadership motivates both internal and external stakeholders with an enormous level of collaboration. Originality/value This rare study of Indian SMEs provides a theoretical framework for designing a pilot survey and conducting a case study of multiple firms. Based on these findings, testable propositions are articulated for future research in diverse organizational and national contexts.

scholarly journals Innovative solutions to tap “Micro, Small and Medium Enterprises” (MSME) market

2019 ◽  
Vol 27 (1) ◽  
pp. 38-52
Author(s):  
Muhammad Mohsin Hakeem
Keyword(s):  
Financial Institutions ◽  
Emerging Economies ◽  
Risk Sharing ◽  
Small And Medium Enterprises ◽  
Profit Sharing ◽  
Islamic Banks ◽  
Collaborative Model ◽  
Content Type ◽  
Net Worth ◽  
Medium Enterprises

Purpose The purpose of this paper is to indicate an innovative solution to address the financing issues faced by “Micro-, Small and Medium Enterprises” (MSME) in emerging economies. Design/methodology/approach Islamic Financial Institutions (IFIs) especially Islamic banks are competing for high net worth individuals, whereas the MSME sector is largely untapped. A collaborative model for IFIs is suggested, to explore the MSME sector. Islamic Non-Banking Financial Institutions (NBFIs) are operating in these markets through their extensive gross route networks. The multistep collaborative model proposes “Special Purpose Entity (SPE)” partially owned by a single Islamic Bank or consortium and NBFI/s. SPEs can be incorporated with a defined scope, focus areas, risk profile, budget and shareholding patterns. Findings Risk and profit sharing instruments also known as Musharakah and Mudarabah have less than 6 percent share within total financing offered by Islamic banks globally. Risk sharing products offered by Islamic banks are not targeting this sector due to the underdevelopment of instruments, lack of knowledge and resources. Proposed SPEs can operate regionally with a concentration on specific business sectors. Originality/value The SPE model would enable Islamic banks to enter the huge MSME market while mitigating risk. On the contrary, it would enable the large segments of emerging economies (bottom 40 percent population of developing nations) to get involved and actively play their role to attain long-term development goals.

Corporate governance and underpricing of small and medium enterprises IPOs in India

2020 ◽  
Vol 20 (3) ◽  
pp. 503-525
Author(s):  
Nischay Arora ◽  
Balwinder Singh
Keyword(s):  
Corporate Governance ◽  
Small And Medium Enterprises ◽  
Curvilinear Relationship ◽  
Board Structure ◽  
Governance Mechanisms ◽  
Content Type ◽  
Explanatory Variables ◽  
Corporate Governance Mechanisms ◽  
Medium Enterprises ◽  
The Impact

Purpose The purpose of the paper is to examine the impact of corporate governance mechanisms, i.e. board structure and ownership structure on the underpricing of small and medium enterprises (SME) IPOs in India. Design/methodology/approach Most of the extant empirical research studies have either pivoted on mainstream IPOs or SMEs IPOs in developed economies, but the present study examines 200 SME IPOs issued during Feb 2012 to April 2017. Multiple regressions have been used to examine the impact of the corporate governance mechanisms on raw return (RR). Furthermore, robustness of the results has been verified through the employment of market-adjusted excess return (MAER) as an additional proxy of underpricing. Findings The results highlight that board size, inverse of board committees, board independence, board age, board directorships positively, and top ten shareholding negatively influence RR. Further, direction of promoter ownership variable indicates curvilinear relationship with underpricing. Other explanatory variables used in model lack statistical validity. Similar results have been obtained when variables were regressed against MAER with related board members being additionally significant in model. Practical implications The findings suggest that Indian investors do take cues from board structure and ownership patterns for making investment decisions in small- and medium-sized firms. Further, the results are also helpful to top management in structuring their boards. Originality/value The present research enriches SME IPOs underpricing literature because the impact of corporate governance mechanisms on unadjusted returns is relatively under explored particularly within the context of small- and medium-sized firms.

Identifying the focal role of top management paradoxical cognition in ambidextrous firms

2018 ◽  
Vol 56 (1) ◽  
pp. 47-63 ◽  
Author(s):  
Aparna Venugopal ◽  
Krishnan T.N. ◽  
Manish Kumar
Keyword(s):  
Emerging Economies ◽  
Small Firms ◽  
Small And Medium Enterprises ◽  
Hierarchical Regression ◽  
Top Management ◽  
Organizational Ambidexterity ◽  
Upper Echelons ◽  
Content Type ◽  
Behavioral Integration ◽  
Medium Enterprises

Purpose Past studies have associated top management’s paradoxical cognition and actions with the ambidextrous performance of firms. Compared to large firms, the top management members of small firms play a focal role in resolving the paradoxical tensions of explorative and exploitative innovation strategies. Anchored in the upper echelons perspective, the purpose of this paper is to explore the influences of two top management team (TMT) processes on organizational ambidexterity: TMT behavioral integration and TMT involvement in small and medium enterprises (SMEs). Design/methodology/approach The research is set in the context of 78 hi-tech SMEs across IT, biotech, and electronics industry. Multiple responses were collected from each firm. The authors used hierarchical regression analysis to test the hypotheses. Findings The findings from this paper demonstrate that the process of TMT behavioral integration enhances organizational ambidexterity. However, the results show that neither the top management’s involvement, nor the interaction of the top management’s involvement with the behavioral integration of a TMT, enhances organizational ambidexterity. Research limitations/implications The limited examination of two TMT processes has restricted the scope of this paper. The study has also been unable to measure paradoxical cognition in the TMT objectively and without proxy measures. Originality/value The results from this study add to the existing literature on paradoxical cognition, ambidexterity, and behavioral integration. The results from this study also lend support to the upper echelons perspective. Further, the findings from this paper present significant practical implications by throwing light on the senior team processes necessary for small ambidextrous firms in emerging economies. The volatile and rather unpredictable nature of emerging economies underscore the relevance of examining the facilitating conditions of small ambidextrous firms in these countries.

scholarly journals Corporate governance and performance of UK listed small and medium enterprises

2015 ◽  
Vol 15 (5) ◽  
pp. 719-733 ◽  
Author(s):  
Godfred Adjappong Afrifa ◽  
Venancio Tauringana
Keyword(s):  
Corporate Governance ◽  
Panel Data ◽  
Small And Medium Enterprises ◽  
Panel Data Analysis ◽  
Executive Directors ◽  
Board Size ◽  
Content Type ◽  
Ceo Tenure ◽  
Ceo Age ◽  
Medium Enterprises

Purpose – This paper aims to report the results of an investigation into the effect of corporate governance factors on the performance of listed small and medium-sized enterprises (SMEs), and examines whether this effect differs between the two sizes of business. Design/methodology/approach – The paper uses unbalanced panel data regression analysis on a sample of 234 SMEs listed on the Alternative Investment Market, for a 10-year period (2004-2013). Findings – The panel data analysis results show that for all SMEs, corporate governance factors – board size, chief executive officer (CEO) age and tenure and directors’ remuneration – are significantly associated with performance of SMEs. The results also suggest that while board size is associated with the performance of both small and medium enterprises, CEO age is significant only for medium firms and directors’ remuneration only for small ones, while CEO tenure and proportion of non-executive directors are not significant for either. Practical implications – Overall, the results imply that corporate governance factors affect the performance of listed SMEs. However, this effect differs significantly between small and medium enterprises. The findings have important implications for policymakers who prescribe corporate governance mechanisms for SMEs. Originality/value – The paper adds to existing literature on corporate governance of SMEs by establishing a relationship between firm performance and board size, CEO age, CEO tenure, directors’ remuneration and proportion of non-executive directors.

Strategic flexibility and SME performance in an emerging economy

2014 ◽  
Vol 27 (2) ◽  
pp. 273-298 ◽  
Author(s):  
Hai Guo ◽  
Zhi Cao
Keyword(s):  
Firm Performance ◽  
Emerging Economies ◽  
Dynamic Capabilities ◽  
Small And Medium Enterprises ◽  
Strategic Flexibility ◽  
Content Type ◽  
Managerial Ties ◽  
Contingency View ◽  
Medium Enterprises ◽  
Dynamic Capabilities Perspective

Purpose – This study aims to address the following question: when strategic flexibility can be most beneficial to small and medium enterprises (SMEs) in the context of emerging economies. Design/methodology/approach – Drawing on dynamic capabilities perspective, this study builds a contingency model and examines it with survey data collected from 166 SMEs in China. Findings – This study finds that the relationship between strategic flexibility and firm performance is extensively moderated by external (competitive intensity and environmental munificence), internal (resource combination activities), as well as bridging factors (managerial ties). Originality/value – The findings contribute to the contingency view of strategic flexibility and firm performance research by incorporating insights from the dynamic capabilities perspective and by expanding the scope of existing research to emerging economies.

Corporate governance in small and medium enterprises: a review

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kuldeep Singh ◽  
Deepa Pillai
Keyword(s):  
Corporate Governance ◽  
Emerging Economies ◽  
Small And Medium Enterprises ◽  
Cost Effective ◽  
Governance Structure ◽  
Sustainable Growth ◽  
Great Level ◽  
Governance Mechanism ◽  
Content Type ◽  
Implementation Challenges

Purpose Research signifies that well-governed companies exhibit long-run financial results and sustainable growth. In the context of SMEs, this paper aims to review the literature on corporate governance, the implementation challenges of corporate governance and its relationship with performance. Entwined with Indian scenarios, the study can be generalized to other emerging economies, with geographic considerations. Design/methodology/approach Studies from 1990 to 2020 are included in the literature review. Three databases were used for the extraction of relevant research articles: Scopus, EBSCO and ScienceDirect. To identify the relevant work, keywords along with Boolean operators for literature search were used from the research databases. The selected articles were further refined based on the authors’ keywords, journal type, data analysis methodologies and abstract analysis. Finally, 115 articles were selected and categorized into themes based on inclusion criteria for further study. Findings Corporate governance provides tangible and intangible benefits to SMEs. The study emphasizes on designing a cost-effective discrete governance mechanism for SMEs than the prevailing corporate governance code for large firms. Furthermore, implementing the corporate governance structure with a great level of discipline and stability is equally essential and related to performance. Originality/value Listing of SMEs is a relatively new phenomenon in emerging economies, including India. With listing, corporate governance and financial performance are expected to shift. The inclusion of the changing landscape of SME governance makes this study unique and relevant in the current scenario. The study will benefit the policymakers and firms to adopt optimum governance practices and link it optimally with performance.

Constraints to the development of MSMEs in Assam, India: do owner-managers’ background characteristics and firm-specific characteristics matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md Sahnewaz Sanu ◽  
Shabana Anjum
Keyword(s):  
Emerging Economies ◽  
Firm Growth ◽  
Small And Medium Enterprises ◽  
Innovation Activity ◽  
Eastern Region ◽  
Firm Characteristics ◽  
Content Type ◽  
The North ◽  
Medium Enterprises ◽  
Perceived Constraints

PurposeThe purpose of the research is to identify the major constraints to the growth of micro, small and medium enterprises (MSMEs) in a less-developed region of an emerging economy and how these constraints are affected by owner/manager's attributes and firm-specific characteristics.Design/methodology/approachTo fulfill the objectives, a structured questionnaire is used to gather data from 200 randomly selected MSMEs located in Cachar district of Assam, India. The study applies factor analysis to categorize various perceived constraints into resolute sets of problem variables or factors. Then, the summated scales are regressed on the predictors related to owner-manager's attributes and firm characteristics to validate the hypotheses.FindingsThe results demonstrate that the broad factors constraining the development of MSMEs in Cachar district are as follows: (1) financial issues, (2) infrastructure problems, (3) labor and management issues, (4) market problems and (5) input problems. Furthermore, the findings confirm that firm growth, size, age, sector, location, innovation activity, owner-manager's gender, age and level of education significantly affect the identified constraints.Research limitations/implicationsAlthough the research is limited to the Cachar district of India, the findings are relevant for other similar districts of India and less-developed regions of emerging economies. However, the study needs to be replicated in other regions of India as well as in other emerging economies for cross-validation and to determine the generalizability of the results.Originality/valueTo the authors' knowledge, no studies linking the constraints faced by MSMEs to owner/manager's attributes and firm-specific characteristics are carried out in the north-eastern region of India. The study also extends the limited researches on the influence of owner-manager's attributes and firm characteristics on the constraints to the growth of MSMEs by incorporating additional predictors.

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