Mediating role of competitiveness between corporate governance and performance of Jordanian SMEs

Abstract

Adoption and adherence to corporate governance are issues that have grown in significance recently and are relevant to businesses of all sizes, including small and medium-sized businesses.  The purpose of this study is to investigate how corporate governance adoption affects Jordanian SMEs' performance and firm competitiveness. The research design used in the study is cross-sectional, and quantitative techniques were used. From Aman in Jordan, one hundred managers or owners of SMEs were chosen. Using Smart PLS software, a structural equation modelling system was used to analyze the gathered data. The study's main conclusions showed that their adoption of corporate governance greatly and favorably impacted SMEs' competitiveness and performance. The study offered suggestions and had some useful ramifications. Because it affects both the economy and the commercial sector in practice, this paper bridges the theoretical and practical divide. It can be applied to research, teaching, and public policy (since it adds to the body of knowledge, especially regarding SME corporate governance in emerging markets). This article's framework for further, comparable research in other emerging market locations to evaluate the findings' generalizability is a crucial component.