Strategy for Human Capital Management of MSMEs: A Conceptual Study

Good Governance is one of the essential factors of success in business as well as in a country’s development. This study aimed at examining the role of good governance and the success of the development. The comparable per head GDP measured in PPP (purchasing power parity) was used as the proxy of the successful economic development of countries in the study. Four out of total six factors (indicators) being the good governance and the other two being social environmental factors were employed in the investigation following concept of the role of external business environmental factors so called “PESTLE or Political, Economic, Social, Technological, Legislative or Legal, and Eco-environmental analysis”. These four indicators of good governance are political stability, control of corruption, rule of law, and voice and accountability which are available from the World Bank’s governance project data base. In addition, the other two indicators, country’s openness and size of population, are the major social variables included in the study which can also affect the success. The total six indicators are taken to examine with the GDP per head to see whether these factors can help countries achieve higher levels of income per head. The study indicates connection between the levels of success with these four indicators of the good governance and the two external social variables. For Thailand, the political instability was found to be a problem of the progress of development among those six indicators.