The Impact of Governance in Achieving Sustainable Competitive Advantage: A Field Study on Yemeni Banks

This study aimed to examine the impact of corporate governance, with its dimensions (transparency and disclosure, protection of shareholders’ rights, the role of stakeholders, and equitable treatment of shareholders), on achieving sustainable competitive advantage with its dimensions (quality, cost, flexibility, innovation, and customer responsiveness) in Yemeni banks operating in the Capital Secretariat. The research adopted the descriptive–analytical approach, and data were collected through a questionnaire designed for this purpose and distributed to a stratified random sample of 327 employees from senior and executive management levels across 13 Yemeni banks. The data were analyzed using SPSS software. The results revealed that the level of governance implementation in Yemeni banks was high, and the level of sustainable competitive advantage was also high. Among the competitive advantage dimensions, “quality” ranked first, while “innovation” ranked last.

The findings further indicated a statistically significant effect of governance, in all its dimensions (transparency and disclosure, protection of shareholders’ rights, the role of stakeholders, and equitable treatment of shareholders), on achieving sustainable competitive advantage. Among governance dimensions, the “role of stakeholders” had the strongest effect, followed by “protection of shareholders’ rights,” then “transparency and disclosure,” and finally “equitable treatment of shareholders.” In light of these results, the study recommended several measures, most notably: enhancing transparency and disclosure practices, strengthening mechanisms for protecting shareholders’ rights, involving stakeholders in decision-making, and supporting innovation and investment in financial technology to develop services and enhance the competitiveness of banks in the Yemeni banking environment.