Impact of Governance on the Failure of Moroccan SME Exporters

Abstract

This study aims to assess how governance can affect the ability of exporting SMEs in Morocco to cope with exchange rate fluctuations, by identifying the resulting failure factors and proposing effective governance strategies to address them. The hypothesis formulated is that good governance within exporting SMEs can improve their ability to cope with exchange rate fluctuations by reducing the default factors associated with these variations and by promoting the implementation of effective exchange rate risk management strategies. The epistemological framework of this study is based on a quantitative approach, using a linear regression model to analyze data collected from Moroccan SME exporters. The results of the analysis enable the identification of good governance practices, such as management transparency, quality of financial information and stakeholder participation. Currency risk management measures, such as hedging, are also recommended to help exporting SMEs cope with exchange rate fluctuations. Finally, support measures for exporting SMEs, such as training in financial management and foreign exchange risk management, are proposed to strengthen their ability to cope with exchange rate fluctuations