THE IMPACT OF ADOPTING CORPORATE GOVERNANCE STRATEGIC PERFORMANCE IN THE TOURISM SECTOR: A CASE STUDY IN THE KINGDOM OF BAHRAIN

The aim of this study is to examine Corporate Governance (CG) practices in the Tourism Small And Medium-Sized Enterprises (TSMEs) in Bahrain. In addition, the research sought to clarify the challenges facing the implementation of CG in the tourism industry in Bahrain, as well as the appropriate mechanisms for ensuring the sustainability of CG. The theoretical framework is proposed based on CG agency theory and institutional theory, which helped in identifying the facts that related to the CG at multi-level working of the tourism sector in Bahrain. A qualitative research is adopted, whereas the primary data used in this research are collected through interviews with 10 managers and executives in the banking and finance sector and involved in CG. Thematic analysis is used to analyse the qualitative data. The results highlighted that the relevance and importance of CG for a range of tourism organisations in Bahrain. The results revealed that certain challenges have plagued the organisations seeking to implement CG in their business, including a lack of adequate system and business processes, higher costs, and lack of understanding and assistance from the government. In addition, the results offered several strategies for overcoming these challenges, including training on higher CG awareness, corporate governance mechanisms and audit report timelines, and the removal of unnecessary CG policies and procedures. The present study is an important contribution in the existing stock of CG literature as it helps in listing out the benefits of CG codes in the tourism industry. In addition, this study conveys the potential for driving suitable change in the organisational culture that will help in enhancing and positively shaping prevailing business behaviour.