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Does the presence of governance structure affect small and medium-sized enterprise performance? Evidence from an emerging market



Objective: The objective of the article is to determine the effect of governance structure components (audit committee presence, board size adequacy, and board leadership) on SMEs’ performance and the moderating effect of chief executive officer (CEO) tenure on the influence of governance structure on SMEs’ performance in Ghanaian context.

Research Design & Methods: We sampled 145 respondents from selected SMEs in the Ghanaian manufacturing, telecommunication, and financial sectors for the study. All selected participants completed questionnaires on governance structure and shared their informed perception of the enterprises’ performance. The data gathered were analysed using multiple regression analysis and Hayes’ process macro.

Findings: The results indicated that board leadership, the presence of an audit committee, and board size adequacy do not significantly influence SMEs’ performance. The results further revealed that CEO tenure is a significant negative moderator to the influence of the governance structure on SMEs’ performance.

Implications & Recommendations: Future studies must focus on how SMEs in Ghana can put CEOs and board succession plans in place so as to ensure creativity/innovation.

Contribution & Value Added: This study contributes to the body of knowledge relating to the governance structure’s influence on various indicators of business performance of SMEs in Ghana. Therefore, this study sought to assess the contribution of corporate governance structures to the performance of SMEs in Ghana. This would help SMEs to know which aspects of their governance structure should be strengthened to effectively contribute to their success.



governance structure; board size adequacy; board leadership; audit committee; enterprise performance

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Author Biography

Daniel Okofo-Darteh

Master of Philosophy in Leadership (University of Professional Studies Accra, Ghana); Bachelor of Science in Marketing (University of Professional Studies Accra, Ghana). His research interests include Higher Education management, Small and Medium Scale business performance, Leadership in organizations and Public sector business management. Lecturer at the Faculty of Management Studies, University of Professional Studies Accra Ghana.

Emmanuel Selase Asamoah

PhD in Economics and Management (Tomas Bata University, Zlín), MSc in Economics and Management, majoring in International Business and Business Practices minor, BA in Psychology with Sociology (University of Ghana). His research interests include Economics of Management and Marketing, Competitiveness and Performance of Firms and Industries, Strategic Cross Cultural Brand Management, Value Creation and Cost reduction, International Business Operations. A Senior Lecturer, he is with the Business Administration department of University of Professional Studies, Accra.


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