Business strategy and corporate governance: theoretical and empirical perspectives


The development of business strategy and appropriate forms of corporate governance are two of the major means to achieve competitive advantage. Depending on the type of institutional environment a firm faces, strategy can either drive or constrain performance. Business strategy is a necessary but not sufficient condition for competitive performance. Performance is also influenced by a firm’s governance arrangements, which are related to the abilities of the managers and their incentives to develop effective strategies.This chapter reviews the theoretical and empirical literature related to business strategy and corporate governance – two central issues ...

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