The Senegalese business landscape has undergone significant transformation, yet persistent structural challenges in diagnostics and governance impede sustainable growth. Existing theoretical models often fail to account for the unique institutional and socio-cultural dynamics of West African economies. This article constructs a novel, integrated theoretical framework to analyse business diagnostics and governance. It aims to delineate the core systemic challenges and identify leverage points for improved organisational resilience and performance within this specific context. The framework is developed through a synthesis of established governance theories, diagnostic models, and context-specific literature. It employs a structured, conceptual analysis to identify and interrelate key variables and mechanisms pertinent to the operating environment. The framework posits that informal social networks exert a dominant, often under-examined influence on formal governance structures, creating a dualistic system. A central proposition is that the alignment—or misalignment—between these formal and informal systems is a primary determinant of diagnostic efficacy. The proposed framework provides a coherent lens for understanding the complex interdependencies shaping business health and oversight. It establishes a foundation for future empirical research and more contextually attuned policy development. Future research should empirically test the framework's propositions. Practitioners and policymakers should adopt diagnostic tools that explicitly account for the interplay between codified governance and prevalent informal institutions. theoretical framework, corporate governance, business diagnostics, institutional analysis, Senegal, West Africa This paper's novel contribution is a synthesised theoretical model that explicitly integrates the role of informal institutions as a core component of business diagnostics and governance, moving beyond their typical treatment as exogenous factors.
Sarr et al. (2024) studied this question.