Corporate Governance and Innovation- Insight and Prospect

Very little empirical research exists that attempts to measure the effectivenessof corporate governance on innovativeness. For this it is crucial to considerthe two main approaches (agency theory and stewardship theory) to corporategovernance. However the theory of corporate governance is stronglyinfluenced by agency theoretical considerations. This book first attempts toshow the relationship between corporate governance mechanisms and innovativeness.Thereby the agency approach to corporate governance isquestioned. Further the influence of culture as an external variable to thepractice of corporate governance is considered. The corporate governancemechanisms ownership structure board composition and CEO duality havebeside control and incentive systems significant influence on a firm's innovativeness.Furthermore empirical findings show that stewardship theory isgenerally more effective in corporate governance in context with innovativenessthen agency theory. Finally an own theoretical framework is developedthat shows that the influence of the theoretical approaches to corporategovernance is dependent on the organization's situational culture type.This book is targeted to researchers students and consultants and everyoneelse showing interest in organizational behaviour.