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The Influence of Top Management Team’s Corporate Governance Orientation on Strategic Renewal Trajectories

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  • Kwee, Z.
  • van den Bosch, F.A.J.
  • Volberda, H.W.

Abstract

Using the upper echelons perspective together with corporate governance and strategic renewal literature, this paper investigates how top managers’ corporate governance orientation influences a firm’s strategic renewal trajectories over time. Through both a qualitative analysis (1907-2004) and a quantitative analysis (1959-2004), we investigate this under-researched question within the context of a large incumbent firm: Royal Dutch Shell plc. Our results indicate that top managers having an Anglo-Saxon corporate governance orientation are more likely to pursue exploitative and external-growth strategic renewal trajectories, while those having a Rhine corporate governance orientation are more likely to pursue exploratory and internal-growth strategic renewal trajectories. We also found a positive moderating effect of the proportion of shareholders from the Anglo-Saxon countries on exploitative and external-growth strategic renewal trajectories. Our findings indicate that top managers’ corporate governance orientation can be an important antecedent of strategic renewal and of organisational ambidexterity, both of which influence corporate longevity.

Suggested Citation

  • Kwee, Z. & van den Bosch, F.A.J. & Volberda, H.W., 2010. "The Influence of Top Management Team’s Corporate Governance Orientation on Strategic Renewal Trajectories," ERIM Report Series Research in Management ERS-2010-032-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
  • Handle: RePEc:ems:eureri:20455
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    References listed on IDEAS

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    Cited by:

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    2. Arturo Capasso & Giovanni Dagnino, 2014. "Beyond the “silo view” of strategic management and corporate governance: evidence from Fiat, Telecom Italia and Unicredit," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 18(4), pages 929-957, November.

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    More about this item

    Keywords

    Royal Dutch Shell; corporate governance; exploitation and exploration; strategic renewal; top management team; upper echelons perspective;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics

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