Maturity level of Good Corporate Governance (GCG) principles implementation – case study from micro and small enterprises

Abstract

This study investigates the maturity level of Good Corporate Governance implementation in micro and small enterprises in West Java, Indonesia. We first identified five major good corporate governance indicators to implementation of good corporate governance principles. We then used maturity level to meas-ure the success rate of good corporate governance implementation in micro and small enterprises. Maturity level is used to assess maturity of software development and is used to assess qualitatively processes or tech-nology. In this study, maturity model is used to assess good corporate governance implementation in Islamic fashion industry. The first result of this study is maturity level as a map to assess the good corporate govern-ance implementation. The next result indicates that micro and small enterprises in Bandung focus on fairness. The reason micro and small enterprises in West Java focus on fairness is the unawareness of informal business of doing business with standard. These results indicate the need to improve micro and small enterprises’ awareness of the importance of good corporate governance implementation to have sustainability of doing business.