Developing an Islamic-Based Governance Framework for Bumiputera Small and Medium Enterprises (SMEs) in Combating Irresponsible Corporate Board Practice

• Main Authors: Mustapa, Ifa Rizad, Abdul Malak, Siti Seri Delima, Malik @ Malek, Mazrah, Marzuki, Ainulashikin
• Format: Conference or Workshop Item
• Language: English
• Published: 2022
• Subjects: HF Commerce
• Online Access: https://repo.uum.edu.my/id/eprint/29948/1/UUM%20IQRC%202022_176_184.pdf; https://repo.uum.edu.my/id/eprint/29948/

Small and Medium Enterprises’ (SMEs) survival and growth depends on their business leadership and corporate governance, the ability to lead, manage and take full advantage of the resources available. Thus, the aim of this research is to develop an Islamic-based governance framework for SMEs in order to combat irresponsible and ineffective corporate board of directors. Interviews, focus group discussion and a questionnaire survey will be conducted with the management including owners, stakeholders and regulators engaged in SMEs to obtain their views on the current governance and the proposed Islamic-based governance framework. The expected outcome in a form of the framework is to contribute significantly to the country in overcoming SMEs performance weaknesses. Virtuous Islamic-based governance and ethical leadership style will be promoted among corporate board and to support the existing and new waves of discussions in governance of SMEs in helping the policy maker for its effective implementation which complements and strengthens the efforts made by the government to ensure an inclusive and meaningful socioeconomic development through the 12th Malaysia Plan (RMKe-12). At the end of the day, members on the SMEs corporate boardroom will have an accountable and trustworthy leadership with the implementation of Islamic-based governance framework.