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Corporate Governance And The Governance Of Knowledge: Rethinking The Relationship In Terms Of Corporate Coherence

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  • J. Krafft
  • J. -L. Ravix

Abstract

Corporate governance and the governance of knowledge were for a long time distinct fields of analysis. Reasons for this incompatibility are linked to the restricted vision of corporate governance supported by shareholder value which essentially refers to information rather than knowledge. In this paper, we argue that other visions of corporate governance exist which are also closer to knowledge dynamics and knowledge governance problems. We elaborate thus on the possible reconciliation between corporate governance and the governance of knowledge. We sustain that each key actor (the manager and the investor) embodies a piece of diversified and localized knowledge related to his/her specific domain and field of experience, and these different modules of knowledge have to be recombined by an appropriate mode of corporate governance that stimulates corporate development. In this perspective, the reconciliation really appears essential since managers, by defining and selecting innovative processes, and investors, by determining the money that is invested to sustain these processes, both take part in the creation and governance of new knowledge by the firm. We show that this reconciliation can be based on the notion of corporate coherence of the cognitive firm that allows replacing the conventional conflicting vision of corporate governance by a new vision based on cooperation between managers and investors that collectively contribute to corporate development and coherence.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 17 (2008)
Issue (Month): 1-2 ()
Pages: 79-95

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Handle: RePEc:taf:ecinnt:v:17:y:2008:i:1-2:p:79-95

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Related research

Keywords: Corporate governance; Corporate coherence; Corporate finance; Corporate development; Governance of knowledge; Knowledge dynamics;

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References

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Citations

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Cited by:
  1. Jackie Krafft, 2008. "Firm," Post-Print hal-00207817, HAL.
  2. Jackie Krafft & Yiping Qu & Jacques-Laurent Ravix, 2011. "Gouvernance d’entreprise et performances sectorielles : une réévaluation de la fiabilité des scores et des mesures de bonne gouvernance," Économie et Prévision, Programme National Persée, vol. 197(1), pages 145-158.
  3. Jackie Krafft & Jacques-Laurent Ravix, 2008. "Corporate Governance in Advanced Economies: Lessons in a Post Financial Crash Era.. Introduction to the Special Issue," Recherches économiques de Louvain, De Boeck Université, vol. 74(4), pages 419-424.
  4. Francesco Quatraro, 2011. "ICT capital and services complementarities: the Italian evidence," Applied Economics, Taylor & Francis Journals, vol. 43(20), pages 2603-2613.
  5. Driver, Ciaran & Guedes, Maria João Coelho, 2012. "Research and development, cash flow, agency and governance: UK large companies," Research Policy, Elsevier, vol. 41(9), pages 1565-1577.
  6. Jackie Krafft & Jacques-Laurent Ravix, 2009. "The Governance of the Knowledge-Intensive Firm in an Industry Life-Cycle Approach," Post-Print hal-00239286, HAL.
  7. Michael Dietrich & Jackie Krafft & Jacques-Laurent Ravix, 2008. "Regulation and governance of the firm," Post-Print hal-00203479, HAL.

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