ISSN: 2222-6990
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Social enterprises refer to enterprises which develop, fund and incorporate solutions that positively impact the social, cultural and environmental issues. The introduction of Malaysia Social Enterprise Blueprint which actively promotes various social enterprises initiatives showed the support from the Malaysian government on the social enterprises. However, despite the attention given on the benefits that could be delivered through the social enterprises, public at large are questioning the issues on corporate governance practices and performance of social enterprises. Thus, this study aims to examine the relationship between the corporate governance practices and performance of social enterprises in Malaysia. Corporate governance practices are vital as carefully selected, well-designed and well-managed governance will help to improve the performance of social enterprises. There are three components of corporate governance practices examined in this study namely corporate structure, corporate monitoring process and corporate controlling process. Meanwhile, the performance of social enterprises is measured from the perspectives of social value and financial value. This study is based on the data obtained from 86 selected social enterprises established in Malaysia and registered with Company Commission of Malaysia. The results indicate that only corporate monitoring process has a positive relationship with social value while corporate structure has a positive relationship to both of the social value and financial value. It is hoped that the study can contribute to the improvement of performance of social enterprises in Malaysia and as well as encourage development of research in the area of social enterprises.
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In-Text Citation: (Johari et al., 2020)
To Cite this Article: Johari, R. J., Sanusi, Z. M., & Shafei, N. A. (2020). Social Enterprises’ Performance: The Influences of Corporate Structure, Corporate Monitoring Process and Corporate Controlling Process. International Journal of Academic Research in Business and Social Sciences, 10(13), 83–97.
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