The firm's strategic dynamics and corporate governance life-cycle
AbstractPurpose – The paper seeks to present a novel conceptual framework that integrates the strategic dynamics of the firm with changes in its governance systems. Design/methodology/approach – The agency research agenda is extended to include other corporate governance roles, such as resource and strategy functions, alongside monitoring and control functions. Theoretical arguments are supported by empirical data related to the founder-manager/IPO, IPO/maturity, maturity/decline and reinvention thresholds. Findings – The paper shows that corporate governance parameters may be linked to strategic thresholds in the firm's life-cycle. Successful transition over a threshold is accompanied by a rebalancing in the structure and roles of corporate governance compared with each previous stage in the cycle. Research limitations/implications – In the absence of longitudinal data relating to firms as they pass through all life-cycle stages the study has been restricted to reporting illustrative data from different studies regarding each strategic threshold. Further research might usefully undertake detailed long-term case studies using a combination of archival and interview data to trace the evolution of firms across the four thresholds. Originality/value – This paper develops a novel conceptual framework that integrates the strategic dynamics of the firm with changes in its governance systems. It rejects the notion of a universal governance template and argues that corporate governance parameters may be linked to transitions from one stage to another in the firm's life-cycle. Accordingly, it argues that changes in a firm's strategic positioning may be associated with rebalancing between the wealth-protection and wealth-creation functions of governance.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Emerald Group Publishing in its journal International Journal of Managerial Finance.
Volume (Year): 2 (2006)
Issue (Month): 4 (September)
Contact details of provider:
Web page: http://www.emeraldinsight.com
Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Igor Filatotchev & Gregory Jackson & Chizu Nakajima, 2013. "Corporate governance and national institutions: A review and emerging research agenda," Asia Pacific Journal of Management, Springer, vol. 30(4), pages 965-986, December.
- Igor Filatotchev, 2008. "Developing an organizational theory of corporate governance: comments on Henry L. Tosi, Jr. (2008) “Quo Vadis? Suggestions for future corporate governance research”," Journal of Management and Governance, Springer, vol. 12(2), pages 171-178, May.
- Ekaterina Bjørnåli & Magnus Gulbrandsen, 2010. "Exploring board formation and evolution of board composition in academic spin-offs," The Journal of Technology Transfer, Springer, vol. 35(1), pages 92-112, February.
- Piekkari, Rebecca & Oxelheim, Lars & Randøy, Trond, 2013. "The Role of Language in Corporate Governance: The Case of Board Internationalization," Working Paper Series 974, Research Institute of Industrial Economics.
- Aguilera, Ruth V. & Desender, Kurt A. & Kabbach de Castro, Luiz Ricardo, 2011. "A Configurational Approach to Comparative Corporate Governance," Working Papers 11-0103, University of Illinois at Urbana-Champaign, College of Business.
- Massimo Colombo & Philippe Mustar & Mike Wright, 2010. "Dynamics of Science-based entrepreneurship," The Journal of Technology Transfer, Springer, vol. 35(1), pages 1-15, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Louise Lister).
If references are entirely missing, you can add them using this form.