Governance strategy: a property right approach turning governance into action

Sven-Olof Collin

    Research output: Contribution to journalArticlepeer-review

    10 Citations (Scopus)

    Abstract

    Corporate governance (CG) needs to acknowledge the intentional part of governance, where an actor of governance uses the set of corporate governance mechanisms in order to influence the agent to create a performance that will satisfy the interest of the principal. This paper offers a conception of this activity through the concept of governance strategy. The concept is based on a property right approach and derived within the context of agency theory, stressing the interest and the capacity of the principal. It is applied to two empirical organisations seldom investigated in CG research: the organisation of multinational corporations in a business group and the organisation of a riding school in a democratic not-for-profit association, thereby extending the relevance of the concept from corporate governance to organizational governance. The empirical analysis indicates the relevance of the conception and suggests further extension through hypotheses of governance strategy related to environmental influence, accessibility of governance mechanisms and momentum of mechanisms.

    Original languageEnglish
    Pages (from-to)215-237
    Number of pages22
    JournalJournal of Management and Governance
    Volume11
    Issue number3
    DOIs
    Publication statusPublished - 2007

    Swedish Standard Keywords

    • Business Administration (50202)
    • Social Sciences (5)

    Keywords

    • Agency theory
    • corporate governance
    • governance strategy
    • property rights

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