Corporate Governance and Organisational Survival in Manufacturing Firms in Port Harcourt

Abstract

This study examined the correlation between corporate governance and organisational survival in manufacturing firms in Port Harcourt. It sought to proffer solutions to survival challenges experienced by firms, through an in- depth application of the concept of corporate governance. Data was collected from 198 management staff through the use of questionnaire. The data was analysed by the use of descriptive statistics and Spearman’s Rank Order Correlation Coefficient. The result revealed a positive relationship between the dimensions of corporate governance board independence and board supervision, and the measures of organisational survival (Innovation and adaptability. Also, the result showed that organisational structure significantly moderates the relationship between corporate governance and organisation survival. The study concludes that board independence has a significant and positive correlation with organisational survival in manufacturing firms. Based on the findings it was recommended that manufacturing firms should ensure that their boards are independent and board supervision should be enthroned to enhance efficiency and corporate survival.

Keywords: Corporate Governance, Organisational Survival, Board independence, Board size, Innovation, Adaptability

DOI: 10.7176/JRDM/64-06

Publication date: April 30^th 2020