Main Article Content
Abstract
In the case of Indonesia, research related to good governance in SMEs is categorized as relatively new and has received little attention. Attention to SMEs is deemed inadequate, while the development of Sharia-based SMEs. The development of Sharia-based SMEs should be the basis for building a solid halal industry construction. SMEs must be developed in order to create a prosperous society. However, whether the method and type of business taken in fulfilling the needs of life are in accordance with Islamic rules, that is the problem and must be a concern for business actors. In running an SMEs business, of course there are limitations in selecting and sorting the products that will be produced by business actors. This study comprehensively examines the topic of governance from an Islamic perspective through analysis of corporate models and conceptual empirical research. The next stage of this research is to review previous research that became a reference and show the things that happened in the literature both theoretically and empirically. Literature study, this research shows the main findings, namely the emergence of uncertainty in the results of the application of governance from an Islamic perspective and competitive advantage in SMEs. Previous researchers conducted related research showing different research results so that further research will be carried out for previous researchers by integrating the comparison pattern between the competitive advantages of conventional SMEs with sharia and the application of corporate governance in SMEs.
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Copyright (c) 2022 Reza Widhar Pahlevi
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References
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- Alzahrani, M. (2019). Islamic corporate finance, financial markets, and institutions: An overview. Journal of Corporate Finance, 55(November), 1–5. https://doi.org/10.1016/j.jcorpfin.2018.11.008
- Anwer, Z., Azmi, W., & Mohamad, S. (2021). Shariah screening and corporate governance: The case of constituent stocks of Dow Jones US Indices. International Review of Economics and Finance, August 2018. https://doi.org/10.1016/j.iref.2020.12.013
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- Chen, N., & Yu, M. T. (2021). National Governance and Corporate Liquidity in Organization of Islamic Cooperation Countries: Evidence based on a Sharia-compliant Liquidity Measure. Emerging Markets Review, 47(October 2018), 100800. https://doi.org/10.1016/j.ememar.2021.100800
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- Erragragui, E., & Revelli, C. (2016). Is it costly to be both shariah compliant and socially responsible? Review of Financial Economics, 31, 64–74. https://doi.org/10.1016/j.rfe.2016.08.003
- Esqueda, O. A., & O’Connor, T. (2020). Corporate governance and life cycles in emerging markets. Research in International Business and Finance, 51(August 2019), 101077. https://doi.org/10.1016/j.ribaf.2019.101077
- Fatmawati, D., Ariffin, N. M., Abidin, N. H. Z., & Osman, A. Z. (2020). Shariah governance in Islamic banks: Practices, practitioners and praxis. Global Finance Journal, 100555. https://doi.org/10.1016/j.gfj.2020.100555
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- Imamah, N., Lin, T. J., Suhadak, Handayani, S. R., & Hung, J. H. (2019). Islamic law, corporate governance, growth opportunities and dividend policy in Indonesia stock market. Pacific Basin Finance Journal, 55(October 2018), 110–126. https://doi.org/10.1016/j.pacfin.2019.03.008
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- Jewalikar, A. D., & Shelke, A. (2017). Lean Integrated Management Systems in MSME Reasons, Advantages and Barriers on Implementation. Materials Today: Proceedings, 4(2), 1037–1044. https://doi.org/10.1016/j.matpr.2017.01.117
- Kok, S. K., & Filomeni, S. (2020). The holding behavior of Shariah financial assets within the global Islamic financial sector: A macroeconomic and firm-based model. Global Finance Journal, 100557. https://doi.org/10.1016/j.gfj.2020.100557
- Oehmichen, J. (2018). East meets west—Corporate governance in Asian emerging markets: A literature review and research agenda. International Business Review, 27(2), 465–480. https://doi.org/10.1016/j.ibusrev.2017.09.013
- Safiullah, M. (2021). Stability efficiency in Islamic banks: Does board governance matter? Journal of Behavioral and Experimental Finance, 29, 100442. https://doi.org/10.1016/j.jbef.2020.100442
- Samantha, G. (2018). The Impact of Natural Disasters on Micro, Small and Medium Enterprises (MSMEs): A Case Study on 2016 Flood Event in Western Sri Lanka. Procedia Engineering, 212, 744–751. https://doi.org/10.1016/j.proeng.2018.01.096
- Srairi, S. (2019). Transparency and bank risk-taking in GCC Islamic banking. Borsa Istanbul Review, 19, S64–S74. https://doi.org/10.1016/j.bir.2019.02.001
- Tarazi, A., & Abedifar, P. (2020). Special issue on Islamic banking: Stability and governance. Global Finance Journal, 100540. https://doi.org/10.1016/j.gfj.2020.100540
- Tjahjadi, B., Soewarno, N., & Mustikaningtiyas, F. (2021). Good corporate governance and corporate sustainability performance in Indonesia: A triple bottom line approach. Heliyon, 7(3), e06453. https://doi.org/10.1016/j.heliyon.2021.e06453
- Tsafack, G., & Guo, L. (2021). Foreign shareholding, corporate governance and firm performance: Evidence from Chinese companies. Journal of Behavioral and Experimental Finance, 31, 100516. https://doi.org/10.1016/j.jbef.2021.100516
- Vásquez, J., Aguirre, S., Puertas, E., Bruno, G., Priarone, P. C., & Settineri, L. (2021). A sustainability maturity model for micro, small and medium-sized enterprises (MSMEs) based on a data analytics evaluation approach. Journal of Cleaner Production, 311(May). https://doi.org/10.1016/j.jclepro.2021.127692
- Yáñez-Araque, B., Sánchez-Infante Hernández, J. P., Gutiérrez-Broncano, S., & Jiménez-Estévez, P. (2021). Corporate social responsibility in micro-, small- and medium-sized enterprises: Multigroup analysis of family vs. nonfamily firms. Journal of Business Research, 124(June), 581–592. https://doi.org/10.1016/j.jbusres.2020.10.023
References
Abu-Tapanjeh, A. M. (2009). Corporate governance from the Islamic perspective: A comparative analysis with OECD principles. Critical Perspectives on Accounting, 20(5), 556–567. https://doi.org/10.1016/j.cpa.2007.12.004
Ahmadi, A., Kerachian, R., Rahimi, R., & Emami Skardi, M. J. (2019). Comparing and combining Social Network Analysis and Stakeholder Analysis for natural resource governance. Environmental Development, 32(September 2018), 100451. https://doi.org/10.1016/j.envdev.2019.07.001
Almaskati, N., Bird, R., & Lu, Y. (2020). Corporate governance, institutions, markets, and social factors. Research in International Business and Finance, 51(August 2019), 101089. https://doi.org/10.1016/j.ribaf.2019.101089
Alzahrani, M. (2019). Islamic corporate finance, financial markets, and institutions: An overview. Journal of Corporate Finance, 55(November), 1–5. https://doi.org/10.1016/j.jcorpfin.2018.11.008
Anwer, Z., Azmi, W., & Mohamad, S. (2021). Shariah screening and corporate governance: The case of constituent stocks of Dow Jones US Indices. International Review of Economics and Finance, August 2018. https://doi.org/10.1016/j.iref.2020.12.013
Ararat, M., Claessens, S., & Yurtoglu, B. B. (2021). Corporate governance in emerging markets: A selective review and an agenda for future research. Emerging Markets Review, 48, 100767. https://doi.org/10.1016/j.ememar.2020.100767
Azmi, W., Anwer, Z., Mohamad, S., & Shah, M. E. (2019). The substitution hypothesis of agency conflicts: Evidence on Shariah compliant equities. Global Finance Journal, 41(April 2018), 90–103. https://doi.org/10.1016/j.gfj.2019.02.004
Ballester, L., González-Urteaga, A., & Martínez, B. (2020). The role of internal corporate governance mechanisms on default risk: A systematic review for different institutional settings. Research in International Business and Finance, 54(July), 101293. https://doi.org/10.1016/j.ribaf.2020.101293
Chen, N., & Yu, M. T. (2021). National Governance and Corporate Liquidity in Organization of Islamic Cooperation Countries: Evidence based on a Sharia-compliant Liquidity Measure. Emerging Markets Review, 47(October 2018), 100800. https://doi.org/10.1016/j.ememar.2021.100800
Correa-Garcia, J. A., Garcia-Benau, M. A., & Garcia-Meca, E. (2020). Corporate governance and its implications for sustainability reporting quality in Latin American business groups. Journal of Cleaner Production, 260, 121142. https://doi.org/10.1016/j.jclepro.2020.121142
Cumming, D., Verdoliva, V., & Zhan, F. (2021). New and future research in corporate finance and governance in China and emerging markets. Emerging Markets Review, 46(December 2020), 100792. https://doi.org/10.1016/j.ememar.2020.100792
Erragragui, E., & Revelli, C. (2016). Is it costly to be both shariah compliant and socially responsible? Review of Financial Economics, 31, 64–74. https://doi.org/10.1016/j.rfe.2016.08.003
Esqueda, O. A., & O’Connor, T. (2020). Corporate governance and life cycles in emerging markets. Research in International Business and Finance, 51(August 2019), 101077. https://doi.org/10.1016/j.ribaf.2019.101077
Fatmawati, D., Ariffin, N. M., Abidin, N. H. Z., & Osman, A. Z. (2020). Shariah governance in Islamic banks: Practices, practitioners and praxis. Global Finance Journal, 100555. https://doi.org/10.1016/j.gfj.2020.100555
Fuenzalida, D., Mongrut, S., Arteaga, J. R., & Erausquin, A. (2013). Good corporate governance: Does it pay in Peru? Journal of Business Research, 66(10), 1759–1770. https://doi.org/10.1016/j.jbusres.2013.01.008
Hashim, F., Mahadi, N. D., & Amran, A. (2015). Corporate Governance and Sustainability Practices in Islamic Financial Institutions: The Role of Country of Origin. Procedia Economics and Finance, 31(15), 36–43. https://doi.org/10.1016/s2212-5671(15)01129-6
Haslam, J., Chabrak, N., & Kamla, R. (2019). Emancipatory accounting and corporate governance: Critical and interdisciplinary perspectives. Critical Perspectives on Accounting, 63, 102094. https://doi.org/10.1016/j.cpa.2019.102094
Imamah, N., Lin, T. J., Suhadak, Handayani, S. R., & Hung, J. H. (2019). Islamic law, corporate governance, growth opportunities and dividend policy in Indonesia stock market. Pacific Basin Finance Journal, 55(October 2018), 110–126. https://doi.org/10.1016/j.pacfin.2019.03.008
Jan, A. A., Lai, F. W., & Tahir, M. (2021). Developing an Islamic Corporate Governance framework to examine sustainability performance in Islamic Banks and Financial Institutions. Journal of Cleaner Production, 315(March), 128099. https://doi.org/10.1016/j.jclepro.2021.128099
Jewalikar, A. D., & Shelke, A. (2017). Lean Integrated Management Systems in MSME Reasons, Advantages and Barriers on Implementation. Materials Today: Proceedings, 4(2), 1037–1044. https://doi.org/10.1016/j.matpr.2017.01.117
Kok, S. K., & Filomeni, S. (2020). The holding behavior of Shariah financial assets within the global Islamic financial sector: A macroeconomic and firm-based model. Global Finance Journal, 100557. https://doi.org/10.1016/j.gfj.2020.100557
Oehmichen, J. (2018). East meets west—Corporate governance in Asian emerging markets: A literature review and research agenda. International Business Review, 27(2), 465–480. https://doi.org/10.1016/j.ibusrev.2017.09.013
Safiullah, M. (2021). Stability efficiency in Islamic banks: Does board governance matter? Journal of Behavioral and Experimental Finance, 29, 100442. https://doi.org/10.1016/j.jbef.2020.100442
Samantha, G. (2018). The Impact of Natural Disasters on Micro, Small and Medium Enterprises (MSMEs): A Case Study on 2016 Flood Event in Western Sri Lanka. Procedia Engineering, 212, 744–751. https://doi.org/10.1016/j.proeng.2018.01.096
Srairi, S. (2019). Transparency and bank risk-taking in GCC Islamic banking. Borsa Istanbul Review, 19, S64–S74. https://doi.org/10.1016/j.bir.2019.02.001
Tarazi, A., & Abedifar, P. (2020). Special issue on Islamic banking: Stability and governance. Global Finance Journal, 100540. https://doi.org/10.1016/j.gfj.2020.100540
Tjahjadi, B., Soewarno, N., & Mustikaningtiyas, F. (2021). Good corporate governance and corporate sustainability performance in Indonesia: A triple bottom line approach. Heliyon, 7(3), e06453. https://doi.org/10.1016/j.heliyon.2021.e06453
Tsafack, G., & Guo, L. (2021). Foreign shareholding, corporate governance and firm performance: Evidence from Chinese companies. Journal of Behavioral and Experimental Finance, 31, 100516. https://doi.org/10.1016/j.jbef.2021.100516
Vásquez, J., Aguirre, S., Puertas, E., Bruno, G., Priarone, P. C., & Settineri, L. (2021). A sustainability maturity model for micro, small and medium-sized enterprises (MSMEs) based on a data analytics evaluation approach. Journal of Cleaner Production, 311(May). https://doi.org/10.1016/j.jclepro.2021.127692
Yáñez-Araque, B., Sánchez-Infante Hernández, J. P., Gutiérrez-Broncano, S., & Jiménez-Estévez, P. (2021). Corporate social responsibility in micro-, small- and medium-sized enterprises: Multigroup analysis of family vs. nonfamily firms. Journal of Business Research, 124(June), 581–592. https://doi.org/10.1016/j.jbusres.2020.10.023