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Does Corporate Governance Improve Small-Firm Performance? The Mediating Role Of Organizational Culture

Author

Listed:
  • Alejandro DIAZ PELÁEZ

    (Fundación Universitaria Internacional de La Rioja, Colombia)

  • José Antonio CLEMENTE-ALMENDROS

    (Universidad Internacional de La Rioja, Spain)

  • Carlos Mario LONDOÑO-TORO

    (Fundación Universitaria María Cano, Colombia)

  • Camilo ALARCON-NIETO

    (Fundación Universitaria Internacional de La Rioja, Colombia)

  • Raquel Patricia SALGADO HERRERA

    (Universidad Simón Bolívar, Colombia)

Abstract

This study examines how organizational culture helps corporate governance positively influence the performance of small companies. Using a primary database of small companies in Medellín, we develop a Structural Equation Model. Our results show that, on its own, corporate governance is not sufficient to positively influence the performance of small companies. It needs the mediating effect of organizational culture. These findings help to understand the sometimes inconclusive evidence of the inclusion of governance policies in small organizations. Moreover, our proof paves the way for managers and policymakers to develop specific policies that increase the performance of this type of organization.

Suggested Citation

  • Alejandro DIAZ PELÁEZ & José Antonio CLEMENTE-ALMENDROS & Carlos Mario LONDOÑO-TORO & Camilo ALARCON-NIETO & Raquel Patricia SALGADO HERRERA, 2025. "Does Corporate Governance Improve Small-Firm Performance? The Mediating Role Of Organizational Culture," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 20(3), pages 151-171, December.
    • Handle: RePEc:blg:journl:v:20:y:2025:i:3:p:151-171
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    References listed on IDEAS

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