SMEs Representatives’ Perceptions of Corporate Governance-Performance Relationship. Evidence from an Emerging Economy

Considering the new European and international sustainability frameworks and standards, along with the legal requirements and social expectations of the national government, SMEs are under pressure to adopt enhanced corporate governance policies and practices, facilitating the shift to a sustainable economy. Hence, the main purpose of this study is to identify and debate the SME’s representatives’ perceptions regarding the corporate governance – performance relationship, examining the relevance of adopting and applying specific management responsibilities for the present and future entrepreneurial pursuits. Approached as quantitative research, a questionnaire is addressed to management, operational personnel, and private investors. A total of 130 questionnaires are analysed to test the research hypotheses, through descriptive and frequency statistics, correlation matrix, and linear regression analysis. The main findings indicate that SMEs’ representatives do not disregard the necessity of forming a Supervisory Board, considering the requirement related to Board members' independence as being extremely important. Furthermore, a clear separation of duties between Board and executive management, together with a significant percentage of Board members’ competence, knowledge, and experience, and Board gender diversity are recognised as opportunities to strengthen the businesses’ performance. The findings imply that improvement of corporate governance policies and practices offers new knowledge to SMEs in an emerging country. Consequently, this study may represent a valuable resource in developing strategies and policies for sustainable economy and business environment, for government and investors, equally.