The Influence of Top Management Teamâ€™s Corporate Governance Orientation on Strategic Renewal Trajectories
AbstractUsing the upper echelons perspective together with corporate governance and strategic renewal literature, this paper investigates how top managersâ€™ corporate governance orientation influences a firmâ€™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 managersâ€™ corporate governance orientation can be an important antecedent of strategic renewal and of organisational ambidexterity, both of which influence corporate longevity.
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Bibliographic InfoPaper provided by 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. in its series Research Paper with number ERS-2010-032-STR.
Date of creation: 23 Jul 2010
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corporate governance; strategic renewal; exploitation and exploration; Royal Dutch Shell; top management team; upper echelons perspective;
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- Pennings, H.P.G. & Sereno, L., 2010. "A Model for Evaluating Pharmaceutical R&D Investment Projects under Technical and Economic Uncertainties," Research Paper ERS-2010-009-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 Uni.
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