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Does Corporate Governance Improve Small-Firm Performance? The Mediating Role of Organizational Culture Cover

Does Corporate Governance Improve Small-Firm Performance? The Mediating Role of Organizational Culture

Open Access
|Jan 2026

Abstract

This study examines how organizational culture helps corporate governance positively influence the performance of small companies. Using a primary database of small companies in Medellín, we develop a Structural Equation Model. Our results show that, on its own, corporate governance is not sufficient to positively influence the performance of small companies. It needs the mediating effect of organizational culture. These findings help to understand the sometimes inconclusive evidence of the inclusion of governance policies in small organizations. Moreover, our proof paves the way for managers and policymakers to develop specific policies that increase the performance of this type of organization.

DOI: https://doi.org/10.2478/sbe-2025-0048 | Journal eISSN: 2344-5416 | Journal ISSN: 1842-4120
Language: English
Page range: 151 - 171
Published on: Jan 18, 2026
In partnership with: Paradigm Publishing Services
Publication frequency: 3 issues per year

© 2026 Alejandro Diaz Peláez, José Antonio Clemente-Almendros, Carlos Mario Londoño-Toro, Camilo Alarcon-Nieto, Raquel Patricia Salgado Herrera, published by Lucian Blaga University of Sibiu
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.