The mediating role of innovation in the relationship between corporate governance and organisation performance

This study primarily aimed to present the impact of corporate governance and innovation on the performance of industrial firms. The study developed and proposed a conceptual model based on relevant studies in literature. The required data was collected from financial SMEs in Jordan with the help of questionnaire surveys, after which they were analysed using PLS-SEM to obtain empirical findings. On the basis of the results, there is a positive relationship between corporate governance and organisational performance, and between innovation and organisational performance. The result also showed the key role that innovation plays on the corporate governance-organisational performance relationship. The study has implications to policymakers in light of establishing strong policies to ensure effective corporate governance is practice in the enterprises for optimum performance.