The Impact of Governance in Achieving Competitive Advantages

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Shafiz Shahrani, Radzali Hassan, Louis Adaikalam


Governance occupied a great deal of interest from academics, practitioners, and regional and international organizations alike to the countries that provided it in solving the global crises that occurred in the countries of the world during the twentieth century. Then the interest in governance expanded after the repercussions of power and issues of corruption in the American economy in order to achieve economic growth automatically. The rules and principles of governance help institutions to efficiently manage their available resources and thus the ability to impose themselves in the market and their stability. So what are small and medium enterprises? Does governance contribute to improving the financial performance of small and medium enterprises? What are the obstacles that sound governance in small and medium enterprises may face? All these questions were addressed in this research. The results showed the importance of governance and the transparent application of its policies on the competitive advantage of companies, which is reflected in economic growth significantly.

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