Assessing the Impact of Good Governance Components on the Sustainability of Cooperative Small and Medium-Sized Enterprises in Bushehr Province During the COVID-19 Pandemic

Abstract

This study aimed to assess the impact of the components of good governance, government crisis management, and business crisis management on the sustainability and success of cooperative small and medium-sized enterprises (SMEs) in Bushehr Province during the COVID-19 pandemic. The study adopted a descriptive–survey and correlational design. The statistical population comprised 3,500 cooperative SMEs operating in Bushehr Province, from which 343 units were selected as the sample using cluster random sampling based on the Morgan table. Data were collected using a researcher-developed 45-item questionnaire with confirmed validity (CVR = 0.856) and reliability (Cronbach’s α = 0.836). Data analysis was conducted using SPSS version 26, applying Pearson correlation coefficients and multiple linear regression analysis. The correlational findings indicated that the relationship between government crisis management (r = 0.417, p < 0.01) and business crisis management (r = 0.368, p < 0.01) with business success was positive and statistically significant. In contrast, the relationship between good governance and business success was weak (r = 0.063) and not statistically significant (p = 0.245). The regression results showed that the model consisting of the three independent variables collectively explained 24.1% of the variance in business success (adjusted R² = 0.241). Analysis of standardized beta coefficients revealed that business crisis management (β = 0.342) was the strongest positive and significant predictor of success, followed by government crisis management (β = 0.315). Surprisingly, good governance exerted a negative and statistically significant effect on business success (β = −0.152). The findings suggest that under crisis conditions, agency—manifested in crisis management undertaken by businesses themselves—and the operational performance of government at the frontline of the crisis played a more decisive role in ensuring the sustainability and success of SMEs than did macro-level governance structures. These results underscore the need to redefine crisis-support policies by focusing on strengthening firms’ internal resilience and improving the quality of direct, tangible governmental actions.