Full Text PDF
Impact Factor (2025): 6.9
DOI Prefix: 10.47001/IRJIET
Impact Factor (2025): 6.9
DOI Prefix: 10.47001/IRJIET
Vol 10 No 5 (2026): Volume 10, Issue 5, May 2026 | Pages: 700-704
International Research Journal of Innovations in Engineering and Technology
OPEN ACCESS | Research Article | Published Date: 31-05-2026
Corporate governance has traditionally been associated with large, publicly listed corporations. However, its relevance to Micro, Small and Medium Enterprises (MSMEs) is increasingly recognized, particularly in emerging economies. Although MSMEs often operate under owner-managed structures with minimal separation between ownership and control, governance mechanisms remain essential for ensuring transparency, accountability, access to finance, and sustainable growth. This study conceptually examines the applicability of corporate governance principles to MSMEs. It analyses the theoretical foundations of governance, including agency theory and stakeholder theory, and evaluates how governance structures can enhance managerial efficiency, reduce financial constraints, and support long-term expansion. The paper also explores the transition of MSMEs into larger enterprises through structured governance mechanisms. The findings suggest that the adoption of governance practices, even in simplified forms, significantly strengthens the managerial and financial foundation of MSMEs.
Corporate Governance, MSMEs, Agency Theory, Stakeholder Theory, Entrepreneurship, Financial Accountability.
Sravani Maddileti, & Gautami S. (2026). Corporate Governance Standards and Their Influence on MSMEs Performance in India. International Research Journal of Innovations in Engineering and Technology - IRJIET, 10(5), 700-704. Article DOI https://doi.org/10.47001/IRJIET/2026.105093
This work is licensed under Creative common Attribution Non Commercial 4.0 Internation Licence
Andrei Shleifer, & Robert W. Vishny (1997). A survey of corporate governance. Journal of Finance, 52(2), 737–783.
Christine Mallin (2019). Corporate Governance (6th ed.). Oxford University Press.
Asli Demirgüç‑Kunt, Thorsten Beck, & Patrick Honohan (2008). Finance for All? Policies and Pitfalls in Expanding Access. World Bank Publications.
World Bank (2020). Small and Medium Enterprises (SMEs) Finance: Improving SMEs Access to Finance. Washington DC.
Colin Mayer (2013). Firm Commitment: Why the Corporation Is Failing Us and How to Restore Trust in It. Oxford University Press.
Raghuram G. Rajan, & Luigi Zingales (1998). Power in a theory of the firm. Quarterly Journal of Economics, 113(2), 387–432.
Tarun Khanna, & Krishna G. Palepu (2000). Is group affiliation profitable in emerging markets?. Journal of Finance, 55(2), 867–891.
Confederation of Indian Industry (2019). Corporate Governance Practices in India. New Delhi.
Securities and Exchange Board of India (2021). Corporate Governance Framework for Indian Companies. SEBI Publications.
Ministry of MSME – Annual Reports msme.gov.in
SEBI Corporate Governance Guidelines sebi.gov.in