Purpose – Corporate Governance (CG) is considered an important element in improving firms’ long-term financial performance, increasing their asset values and, as such, it can be of benefit to society at large. This paper aims to analyze CG within the Albanian context. Given its importance, Albanian companies face an urgent need to assess CG standards and promote CG reforms in order to improve their performance and become able to attract foreign direct investment. This paper explores the specific transformations that Albanian managers face in the current dynamic and complex business environment, and the need for sustainability based on “good” CG practices.
Design/methodology/approach – The Delphi technique is adopted. This technique is based on the rational principle that ‘n’ human minds are better than one when confronting lack of precise knowledge about a certain problem/research question (cf. Ferreira and Monteiro Barata, 2011). In this approach, a sequence of successive individual questions is asked and then supplemented with information and advice, to correct the first stages of the process and, under certain parameters, generate consensus. The overall characteristics of the Delphi process are anonymity, controlled feedback, and statistical treatment of the group responses. The Delphi technique is typically applied in situations where the problem under discussion cannot be resolved by precise analytical techniques, because there are no historical data or relevant information available (cf. Ferreira and Monteiro Barata, 2011; Çipi et al., 2014).
Originality/value –This paper delves into the relatively unexplored topic of CG practices in Albania, regarding which there is currently very little research or information. Furthermore, it does so by studying the application of a methodology (the Delphi technique) which has not, to the best of our knowledge, been applied to such a context before. Empirically, our investigation involves a panel of CEOs from Joint Stock Companies’ (JSCs) from the most representative cities in Albania.
Practical implications – The outcomes of our study should serve as reference for further efforts aimed at enhancing CG in Albanian companies. They should also serve as catalyst for international comparisons and, from a benchmarking perspective, for the adoption of internationally recognized CG best practices by Albanian companies. This can be seen as a “key to sustainability”, meaning that a broader perspective should be adopted in future CG reforms in Albania to support sustainable economic development. Indeed, a better awareness of the long-term benefits of CG best practices can help Albanian JSCs attract powerful foreign investors and, thereby, boost the country’s development.
Keywords – Corporate Governance, Development Prospects, Sustainable Growth, Albania, Joint Stock Companies