Corporate governance for lebanese SMEs Essay Example | Topics and Well Written Essays - 750 words

Corporate establishment for lebanese SMEs - Essay ExampleThis study so is an analyzing assessment for whether this model would be, to any extent, applicable to the Lebanese context. It reveals the results of the first phase of an ongoing research aiming at investigating the extent to which the Anglo-Saxon System of Corporate Governance be adopted by companies in Middle-Eastern countries, specifically the case of SMEs in Lebanon?Identifying whether it contributes in improving or hindering their performance? Using a purposeful sampling approach, semi-structured interviews and focus groups technique is applied to 90 owners/sh beholders, managers and employees from the trading, hotel and restaurant sectors that dominate Lebanese SMEs (table 1) and present 50.40% of the total population.This technique provides the advantage of comparing all participants responses to the main question and provides more in-depth information that cannot be obtained through questionnaires. This discussion answers the above mentioned research questions through adopting the interpretive approach and a thematic analysis. information will be collected and interpreted deeply in order to identify the extent to which socio- ethnic factors call for a firms corporate governance structure and hence its performance. 1.1 Purpose of the Study concord to the literature, there are much more forms of corporate governance, based on different structures of ownership and affect by large variations of cultural background, legal framework, political environment and economic climate (J. Solomon & A. Solomon, 2004). The fit amidst cultural values and arrangingal structures resulted from a fusion of human nuance with the models of organization therefore, it is recommended that organizations enter into arrangements that tally with our basic cultural perspective (Hofstede (1991). In other terms, the organizational structural elements are shaped by values that are compatible with and suitable to cultur al values as a component of the organizations implicit models (Hambrick & Brandon, 1988). Swidler (1986) argues that organizations can be viewed as social entities integrated into the institutional and value structures constituting the culture of a society in this view, organizations and societies tend to reflect each other structurally. In particular, national cultural differences influence the shape and functioning of organizations (Hickson & Pugh, 1995 Hofstede, 1991). Besides, literature found that good governance has a positive shock on organizational performance. Gemmill and Thomas (2004) note that good corporate governance and firm value are positively correlated. Corporate governance mechanisms can guarantee for shareholders an adequate return on their investments (Shleifer & Vishny, 1997). Given the culture-structure radio link and the correlation between good governance and performance, the purpose of this study is to identify the extent to which corporate governance mode l in Lebanon fits with the Anglo-American model. If it fits, the objective of the study will be how to maintain it? If not, the study will essay the benefits of proposing a new model of corporate governance or adapting the existing one. 1.2 Nature of the Study The observational analysis contained herein is of qualitative nature. Qualitative research seeks to understand the social world from the perspectives of research participants and the little descriptions of their experiences (Myers, 2000).The richness and depth of explorations and descriptions represent one of the