Corporate Governance Adoption In Small Firms

This paper explores the dynamic interplays involved for small businesses from the cities of Mutare and Harare in Zimbabwe to adopt corporate governance. Although a fairly considerable literature exists for corporate governance in large listed companies in Zimbabwe, how small firms approach corporate governance remain underexplored. Worldwide, abundant evidence links corporate governance with improved firm performance and deems small firms as vital engines driving socio-economic growth globally. In light of this evidence, scant research about how small businesses in Zimbabwe approach corporate governance is therefore, indeed a significant knowledge gap. To address this lacuna, a qualitative phenomenological inquiry was employed. Eight small business owner managers operating in diverse business sectors in Zimbabwe’s cities of Mutare and Harare were interviewed face to face. Findings, unveil a unique interplay between knowledge, promoting, and inhibition factors (KPI Factors). Consequently, the article offers a KPI framework to explain how small businesses approach corporate governance in Zimbabwe. This KPI framework casts significant academic, practical and policy insights to similar situations especially from the global south economies.