Corporate governance in SMEs: a systematic literature review and future research

Abstract

Purpose The purpose of this study is to examine the corporate governance of small and medium enterprises (SMEs) through a systematic literature review. Design/methodology/approach The review was conducted by analyzing 19 published studies in the field, leading to the identification of 14 journals and 40 authors. The relationship between corporate governance mechanisms and various aspects of SMEs’ performance was analyzed. The characteristics of corporate governance were classified into five categories: board, ownership, CEO, audit and age. Findings The review found a direct relationship between corporate governance mechanisms and various aspects of SMEs’ performance, including innovation, internationalization, auditing and risk of failure. The study also highlights the need for future research to adopt a behavioral perspective, to shift focus from identifying responsibilities to examining governance processes and to use nonlinear models and qualitative methods to effectively analyze the interrelated nature of the phenomena under study. Research limitations/implications The limitations of the review include the limited number of studies available for analysis, as well as the fact that most of the empirical research was based on evidence from European countries, with only a few papers focusing on other countries, such as the USA, China and Ghana. Originality/value The results of this review provide valuable insights for researchers and practitioners in the field of corporate governance in SMEs. The findings provide a foundational basis for further research in the area and highlight the need for future studies to adopt a behavioral perspective and use nonlinear models and qualitative methods.