Comparative Institutional Analysis of Corporate Governance
Comparative Institutional Analysis of Corporate Governance
This chapter applies a ‘comparative institutional analysis’ approach to CG. It criticizes the property right approach for being a special case, and develops a more general model of governance with shifting allocations of property rights to different internal and external actors, contingent to the overall economic performance of the firm. This contingent relational governance solution is deemed to be complementary with an uncontingently horizontal organization, at least in innovative activities. The Silicon Valley model is discussed as supportive evidence of this mode of CG.
Keywords: comparative institutional analysis, property right theory, horizontal organization, contingent governance, relational governance, Silicon Valley
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