Title: Business success: Does good governance matter? A theoretical framework

Authors: Ibrahim Akoum

Addresses: Hariri Canadian University (HCU), P.O. Box 10, Damour, Chouf 2010, Lebanon

Abstract: Business does not operate in a vacuum. It is influenced by, in much the same way that it does influence, the intricate web of economic, political and social arrangements in a society. Consequently, business success not only depends on skillful management, good marketing and financial ingenuity, but also on sound governance, which rests on the regulatory, judicial, legal and institutional infrastructure needed to ensure protection of property rights, improve investment and company laws, thereby establishing a conducive business environment. This paper argues that poor governance, evidenced by weak institutional arrangements, deficient legal frameworks and endemic corruption lends itself to poor and inadequate business and economic performance. Thus, it contributes to developing a theoretical framework of the ingredients of sound governance by introducing the concept of |governance cycle| and the areas where this cycle gets obstructed. The paper concludes that corruption, rent seeking and weak institutional frameworks compromise the governance cycle.

Keywords: governance cycles; corruption; corporate social responsibility; economic performance; political influences; politics; society; financial management; marketing; regulation; regulatory controls; judicial institutions; legal frameworks; institutional infrastructure; property rights; investments; success; company laws; rent seeking; compromise; globalisation; business advancement.

DOI: 10.1504/JGBA.2009.031696

Journal for Global Business Advancement, 2009 Vol.2 No.4, pp.365 - 380

Published online: 19 Feb 2010 *

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