An Explorative Survey in the Implementation of Good SMES Governance on Small Business Entity

Apply

An Explorative Survey in the Implementation of Good SMES Governance on Small Business Entity

Journal Title: Journal of Accounting Research, Organization and Economics - Year 2018, Vol 1, Issue 1

Abstract

Objective – This study aims to explain and predict about the implementation of good governance on small business entities as a key performance indicator. Implementation of good governance is needed and becomes important for small business entities to be able to develop and still exist in business environments. Design/methodology – This study was designed with field study research approach oriented explorative study with a combination of primary and secondary data. This research proposed two precision, namely: First, an understanding of small business entities on the principles of SMEs governance is positively associated with perceptions of small business entities about the importance of implementing good governance in business activities. Second, the perception on the implementation of good governance is positively associated with the performance of small business entities. Results – The results showed that the understanding of small business entities are pos itively related to perceptions of the importance of implementing good governance, but not positively related to the performance of small business entities. This means that the constraints and obstacles faced by small business entities in the application and implementation of good governance is more due to the principles of SMEs governance do not have a positive and significant relationship with the performance of small business entities. Research limitations/implications – For further research is needed to add more small business entities as respondents, particularly small business entity that has the legality (listed in the government and/or have a business license.) Necessary to reexamine the instrument that has been used to make some adjustments such as set back a list of questions compiled by Credit Lyonnais Securities Asia (CLSA) to make some adjustments in accordance with the needs of small business entities. Further research is recommended to use the same method or using other research methods in the test results, such as using Discriminate Analysis.

Authors and Affiliations

Fazli Syam BZ

Keywords

Ownership Concentration and Firm Performance in Indonesia

Objective – The study aim to investigate the effect of ownership concentration on the financial performance of firms listed in the Indonesian Stock Exchange from 2008 to 2012. Design/methodology – Data for the study wer...

Islamic Finance and the Convergence towards International Financial Reporting Standards (IFRS): The State of Research Development

Objective – Extensive research has been undertaken in the area of accounting harmonization ever since the idea of harmonizing accounting standards and practices was probably initiated as early as 1930s. The transformatio...

EP ID EP555456
DOI 10.24815/jaroe.v1i1.10856
Views 51
Downloads 0