Corporate Governance and Sustainable Development: An Analysis of Their Relationship and Impacts on Business Performance in Thai Industrial Estates
Article Sidebar
Main Article Content
Abstract
This research aims to investigate the structural relationship between corporate governance, strategic resource management, and sustainable development affecting business performance in Thai industrial estates, particularly in the Eastern Economic Corridor. The key research problem is the lack of in-depth understanding of the relationship mechanism among these variables in the context of this special eastern economic zone. This study analyzes the causal relationships of corporate governance, strategic resource management, sustainable development, and business performance. A quantitative methodology is employed. Data were collected from 215 senior executives within industrial estates and analyzed using structural equation modeling (SEM). The findings reveal that (1) corporate governance has a direct positive influence on sustainable development and business performance, (2) strategic resource management serves as a critical mediating variable between corporate governance and sustainable development, and (3) the integration of governance practices and sustainability strategies contributes to creating long-term competitive advantages for businesses. These findings can be used to formulate sustainable industrial development policies and strategies. The organizational executives are encouraged to develop balanced performance indicators across economic, social, and environmental dimensions. Moreover, this study serves as a guideline for regulatory agencies in designing appropriate promotional and supervisory measures. Future research should expand the study to specific industries and other areas to compare policy implications.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
-
Authors must agree to the journal publication rules and allow the editors to edit the manuscripts for publication.
-
Author’s right belongs to the author but Journal of Southern Technology holds the right of first publication and thus allow readers to use the article for the purpose of education but not commercial.
References
Adu, D., Al‐Najjar, B., & Sitthipongpanich, T. (2022). Executive compensation, environmental performance, and sustainable banking: The moderating effect of governance mechanisms. Business Strategy and the Environment, 31(4), 1439-1463. https://doi.org/10.1002/bse.2963
Agbata, A., Egolum, P., Offia, A., & Okoye, N. (2023). Corporate governance and firm sustainability in the emerging economy: A literature review. Corporate Governance and Sustainability Review, 6(4), 33-43. https://doi.org/10.22495/cgsrv6i4p3
Al‐Mashhadani, M., & Almashhadani, H. (2023). The influence of the corporate governance on firm performance: Evidence from Barcelona listed firms. International Journal of Scientific and Management Research, 6(9), 109-122. https://doi.org/10.37502/ijsmr.2023.6908
Banaag, F. (2024). Sustainable investment practices of franchisees: The role of green finance, net zero literacy and corporate governance. Journal of Rural Sociology Microfinance and Poverty Studies, 1(1), 31-41. https://doi.org/10.54536/jrsmps.v1i1.3639
Capurro, R., Fiorentino, R., Galeotti, R., & Garzella, S. (2023). The impact of digitalization and sustainability on governance structures and corporate communication: A cross-industry and cross-country approach. Sustainability, 15(3), 2064. https://doi.org/10.3390/su15032064
Chalabi, R., & Jarraya, B. (2023). How corporate governance mechanisms improve the financial performance of shareholding companies. International Journal of Business & Management Studies, 4(6), 44-52. https://doi.org/10.56734/ijbms.v4n6a6
Chykurkova, A., & Didukh, S. (2023). Models of corporate governance: Comparative analysis of management models of joint-stock companies and their impact on efficiency. Black Sea Economic Studies, (83), 32–38. https://doi.org/10.32782/bses.83-5
Forés, B., Fernández-Yáñez, J., & Puig‐Denia, A. (2025). How do family firm ownership and governance structures impact the digitalization of business strategy for sustainability: A catalyst or an obstacle? Business Ethics, the Environment & Responsibility, 35(1), 415–431. https://doi.org/10.1111/beer.12795
Gunnarapong, N., Boonyanet, W., & Jangphanish, K. (2024). The moderating impact of loan loss reserves on the relationship between ESG performance and bank value: Empirical evidence of Thai listed banks. Journal of Infrastructure Policy and Development, 8(7), 5272. https://doi.org/10.24294/jipd.v8i7.5272
Irigaray, H., & Stocker, F. (2024). Reflections on business resilience, corporate governance, and corporate social responsibility. Cadernos EBAPE.BR, 22(1), e90025. https://doi.org/10.1590/1679-395190025x
Irshad, A., Safdar, N., Younas, Z., & Manzoor, W. (2023). Impact of corporate governance on firms' environmental performance: Case study of environmental sustainability-based business scenarios. Sustainability, 15(10), 7775. https://doi.org/10.3390/su15107775
Johnpaul, M., Miryala, R., & Gade, J. (2024). Corporate governance as a catalyst in bolstering sustainable development goals in India. Journal of Mountain Research, 19(2), 165–175. https://doi.org/10.51220/jmr.v19-i2.18
Kumar, A. (2024). Comparative analysis of corporate governance practices: A systematic literature review of India and GCC nations. International Journal of Management Public Policy and Research, 3(4), 54-66. https://doi.org/10.55829/ijmpr.v3i4.256
Liu, M., & Zhen, R. (2024). Fostering sustainability through legal integration: A multidimensional analysis of environmental and commercial law synergies. Lecture Notes in Education Psychology and Public Media, 52(1), 7-13. https://doi.org/10.54254/2753-7048/52/20241520
Liu, Z., Feng, J., & Huang, J. (2024). Research on the impact of business environment optimization in Guangdong province on corporate ESG performance. International Journal of Green Economy and Management, 3(1), 219-224. https://doi.org/10.62051/ijgem.v3n1.24
Mähönen, J. (2020). Integrated reporting and sustainable corporate governance from European perspective. Accounting, Economics, and Law: A Convivium, 10(2), 20180048. https://doi.org/10.1515/ael-2018-0048
McGrady, P., & Golicic, S. (2023). Barriers to corporate sustainability in the U.S. Journal of Management and Sustainability, 13(2), 112-126. https://doi.org/10.5539/jms.v13n2p112
Mohapatra, B. (2023). Honey adulteration and corporate irresponsibility in India: Visualizing corporate sustainability. FIIB Business Review, 14(1), 12-20. https://doi.org/10.1177/23197145231158448
Ratanachina, J., & Sithisarankul, P. (2024). Workplace health promotion management of non-communicable disease prevention and implementation among organizational leaders and human resource executives in Thailand: A qualitative study. Journal of Public Health and Development, 22(1), 170-183. https://doi.org/10.55131/jphd/2024/220113
Ravikumar, D., & Sengottuvelu, L. (2025). The rise of alternative accommodation: Assessing the investment potential of short-term rental properties in global cities. Business Management, 11(1), 41–44. https://doi.org/10.53555/bm.v11i1.6259
Siswanti, I., & Cahaya, Y. (2021). Sustainable business Islamic banks in Indonesia. Accounting, 7(2), 299-310. https://doi.org/10.5267/j.ac.2020.11.023
Sun, Y. (2023). Long-term business sustainability through corporate governance. Advances in Economics Management and Political Sciences, 19(1), 255-262. https://doi.org/10.54254/2754-1169/19/20230146
Wettasin, M., Chaiyarat, R., Youngpoy, N., Jieychien, N., Sukmasuang, R., & Tanhan, P. (2023). Environmental factors induced crop raiding by wild Asian elephant (Elephas maximus) in the Eastern Economic Corridor, Thailand. Scientific Reports, 13, 13249. https://doi.org/10.1038/s41598-023-40070-3
