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Corporate Governance, Corporate Entrepreneurship and Firm Performance: Evidence from the Rwandese Manufacturing Industry

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  • Etienne Ndemezo
  • Charles Kayitana

Abstract

This study aims to determine effects of corporate governance on corporate entrepreneurship of Rwandese manufacturing firms, and to evaluate effects of corporate governance on performance of Rwandese manufacturing firms. We used two complementary methodological approaches: one which links corporate governance to corporate entrepreneurship; another which uses an augmented Cobb–Douglass production function to associate corporate governance with the firm performance. This study resulted in four main outcomes: first, the background—education and experience—and motivation of top managers contribute significantly to both corporate entrepreneurship and corporate performance; second, the sole proprietorship organisational form harms significantly the firms’ entrepreneurial activities and impacts negatively their financial performance; third, electricity and raw materials expenses are positively and significantly related to financial performance of manufacturing firms; and fourth, even if informal competition has no effect on entrepreneurial activity of manufacturing firms, it harms their financial performance.

Suggested Citation

  • Etienne Ndemezo & Charles Kayitana, 2018. "Corporate Governance, Corporate Entrepreneurship and Firm Performance: Evidence from the Rwandese Manufacturing Industry," Indian Journal of Corporate Governance, , vol. 11(2), pages 103-121, December.
    • Handle: RePEc:sae:ijcgvn:v:11:y:2018:i:2:p:103-121
    DOI: 10.1177/0974686218806715
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    References listed on IDEAS

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    1. Indra Wahyudi & Arif Imam Suroso & Bustanul Arifin & Rizal Syarief & Meika Syahbana Rusli, 2021. "Multidimensional Aspect of Corporate Entrepreneurship in Family Business and SMEs: A Systematic Literature Review," Economies, MDPI, vol. 9(4), pages 1-17, October.

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