Corporate Governance and Firm Integrated Performance: Concept Paper

Abstract

The firm's integrated performance has become widely significant in the development of business in present context. Corporate governance, which has become the focal point of corporate success, sets the rules for minimizing financial crises and management conflicts. Good management practices are essential not only to successfully manage an organization and remain profitable but also to enhance stakeholder wealth and strengthen corporate image in the long run. As such, good governance aims for the sustainability of an organization. Sound management practices are not just for a quick fix but rather requires foresight; these are among key concerns of organization which endeavor to wealth maximization as well as confidence as a responsible corporate citizen. Many studies have investigated the relationship between corporate governance and firm's core functional areas separately but not collectively. Thus, this paper explores the effect of corporate governance on a firm's integrated performance in terms of accounting and finance, marketing, logistics, and supply chain performance influenced by board size as the moderating variable. In addition, the study proposes a conceptual framework that demonstrates the aforesaid relationship, as well as specific research hypotheses for future study. The theoretical framework proposed in this study is highly backed by the theories of agency theory, stewardship theory, and stakeholder theory. This integration of corporate governance and given factors will disclose important management consequences and research discoveries for the future.