Anglo-American governance adoption in non-Anglo-American settings: assessing practitioner perception across emerging economies. The case of Cameroon, Kenya and Pakistan.

Geofry Nfortaw Areneke, Fatima Yusuf, Danson Kimani

Research output: Contribution to JournalArticle

Abstract

Purpose – Albeit the growing academic research on emerging economies corporate governance (CG) environments within accounting and finance literature, there exists a dearth of cross-country studies using a qualitative approach to understand practitioners’ behaviour vis-a-vis diffusion of international CG practices in emerging economies. This study aims to fill this oversight through a comparative analysis of the divergence and convergence of CG systems operational in three emerging economies (Cameroon, Kenya and Pakistan) while highlighting different institutional and contextual impacts on behaviour of governance actors. The paper uses an interface between critical realism and new institutional economics theory to explore the implementation and execution of CG in Cameroon, Kenya and Pakistan.

Design/methodology/approach – The study analysed 24 in-depth semi-structured interviews and conducted with key governance practitioners across the three countries.

Findings – The findings show that CG implementation processes in Cameroon, Kenya and Pakistan are nascent and driven by international forces rather than local initiatives. CG lacks institutional identity across the three countries as regulatory coercion acts as a key driver for CG adoption and practitioner accounts are mixed regarding the impact of CG on firm performance.

Practical implications – The paper evidences that the lack of governance identify, compliance and slow implementation process of governance regulations and its impact on firm performance in emerging economies is caused by the fact that local institutional characteristics prevalent in these economies may not be suitable
for a “copy and paste” of Western form of governance regulations. Furthermore, governance actors do not see the relevance of recommended CG practices except as a regulatory burden.

Originality/value – The paper contributes to close the lacuna in the seemingly little qualitative comparative study that has examined practitioner’s perception vis-à-vis the diffusion of international governance practices in emerging economies. Specifically, it uncovers how different institutional and contextual factors impact on the behaviour of governance actors and how their behaviours may constrain adoption, implementation and compliance with recommended governance practices.
Original languageEnglish
Pages (from-to)482-510
Number of pages29
JournalManagerial Auditing Journal
Volume34
Issue number4
DOIs
Publication statusPublished - 1 Apr 2019

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Pakistan
Cameroon
Emerging economies
Kenya
Governance
Corporate governance
Implementation process
Firm performance
New institutional economics
Design methodology
Comparative study
Qualitative approaches
Structured interview
Contextual factors
Cross-country study
International corporate governance
Comparative analysis
Institutional factors
Critical realism
Academic research

Keywords

  • Corporate governance
  • Implementation Process
  • Emerging economies
  • New Institutional Economics
  • Cameroon
  • Kenya
  • Pakistan
  • Governance Actors

Cite this

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title = "Anglo-American governance adoption in non-Anglo-American settings: assessing practitioner perception across emerging economies. The case of Cameroon, Kenya and Pakistan.",
abstract = "Purpose – Albeit the growing academic research on emerging economies corporate governance (CG) environments within accounting and finance literature, there exists a dearth of cross-country studies using a qualitative approach to understand practitioners’ behaviour vis-a-vis diffusion of international CG practices in emerging economies. This study aims to fill this oversight through a comparative analysis of the divergence and convergence of CG systems operational in three emerging economies (Cameroon, Kenya and Pakistan) while highlighting different institutional and contextual impacts on behaviour of governance actors. The paper uses an interface between critical realism and new institutional economics theory to explore the implementation and execution of CG in Cameroon, Kenya and Pakistan.Design/methodology/approach – The study analysed 24 in-depth semi-structured interviews and conducted with key governance practitioners across the three countries.Findings – The findings show that CG implementation processes in Cameroon, Kenya and Pakistan are nascent and driven by international forces rather than local initiatives. CG lacks institutional identity across the three countries as regulatory coercion acts as a key driver for CG adoption and practitioner accounts are mixed regarding the impact of CG on firm performance.Practical implications – The paper evidences that the lack of governance identify, compliance and slow implementation process of governance regulations and its impact on firm performance in emerging economies is caused by the fact that local institutional characteristics prevalent in these economies may not be suitablefor a “copy and paste” of Western form of governance regulations. Furthermore, governance actors do not see the relevance of recommended CG practices except as a regulatory burden.Originality/value – The paper contributes to close the lacuna in the seemingly little qualitative comparative study that has examined practitioner’s perception vis-{\`a}-vis the diffusion of international governance practices in emerging economies. Specifically, it uncovers how different institutional and contextual factors impact on the behaviour of governance actors and how their behaviours may constrain adoption, implementation and compliance with recommended governance practices.",
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Anglo-American governance adoption in non-Anglo-American settings: assessing practitioner perception across emerging economies. The case of Cameroon, Kenya and Pakistan. / Areneke, Geofry Nfortaw; Yusuf, Fatima; Kimani, Danson.

In: Managerial Auditing Journal, Vol. 34, No. 4, 01.04.2019, p. 482-510.

Research output: Contribution to JournalArticle

TY - JOUR

T1 - Anglo-American governance adoption in non-Anglo-American settings: assessing practitioner perception across emerging economies. The case of Cameroon, Kenya and Pakistan.

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AU - Yusuf, Fatima

AU - Kimani, Danson

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AB - Purpose – Albeit the growing academic research on emerging economies corporate governance (CG) environments within accounting and finance literature, there exists a dearth of cross-country studies using a qualitative approach to understand practitioners’ behaviour vis-a-vis diffusion of international CG practices in emerging economies. This study aims to fill this oversight through a comparative analysis of the divergence and convergence of CG systems operational in three emerging economies (Cameroon, Kenya and Pakistan) while highlighting different institutional and contextual impacts on behaviour of governance actors. The paper uses an interface between critical realism and new institutional economics theory to explore the implementation and execution of CG in Cameroon, Kenya and Pakistan.Design/methodology/approach – The study analysed 24 in-depth semi-structured interviews and conducted with key governance practitioners across the three countries.Findings – The findings show that CG implementation processes in Cameroon, Kenya and Pakistan are nascent and driven by international forces rather than local initiatives. CG lacks institutional identity across the three countries as regulatory coercion acts as a key driver for CG adoption and practitioner accounts are mixed regarding the impact of CG on firm performance.Practical implications – The paper evidences that the lack of governance identify, compliance and slow implementation process of governance regulations and its impact on firm performance in emerging economies is caused by the fact that local institutional characteristics prevalent in these economies may not be suitablefor a “copy and paste” of Western form of governance regulations. Furthermore, governance actors do not see the relevance of recommended CG practices except as a regulatory burden.Originality/value – The paper contributes to close the lacuna in the seemingly little qualitative comparative study that has examined practitioner’s perception vis-à-vis the diffusion of international governance practices in emerging economies. Specifically, it uncovers how different institutional and contextual factors impact on the behaviour of governance actors and how their behaviours may constrain adoption, implementation and compliance with recommended governance practices.

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KW - Implementation Process

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KW - New Institutional Economics

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KW - Kenya

KW - Pakistan

KW - Governance Actors

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EP - 510

JO - Managerial Auditing Journal

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