Abstract:

SME is the backbone to the economy of Malaysia. It comprised 98.5% of business establishment in Malaysia. Currently, Malaysian SMEs is facing a lot of internal and external challenges such as lack of managerial capabilities, lack of experience, lack of financing and burden of regulatory environment. Previous studies show that sound corporate governance practices can result in reduction of mismanagement and ensure success and sustainable growth. Therefore, this study proposed to study the intention to adopt corporate governance practices among Malaysian SMEs. The conceptual model will integrate the decomposed theory of planned behaviour and technology-organizational-environment framework. The antecedents of intention to adopt corporate governance are attitude, subjective norms and perceived behavioural control. The sample for this study is managers and business owners of SMEs. Lastly, this study will contribute to the development and promotion of CG principles in Malaysian SMEs by providing an insight into the current situation in the country.