The Influence of Top Management Team’s Corporate Governance Orientation on Strategic Renewal Trajectories
Zenlin Kwee,
Frans Van Den Bosch and
Henk Volberda
ERIM Report Series Research in Management from 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
Abstract:
Using the upper echelons perspective together with corporate governance and strategic renewal literature, this paper investigates how top managers’ corporate governance orientation influences a firm’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 managers’ corporate governance orientation can be an important antecedent of strategic renewal and of organisational ambidexterity, both of which influence corporate longevity.
Keywords: Royal Dutch Shell; corporate governance; exploitation and exploration; strategic renewal; top management team; upper echelons perspective (search for similar items in EconPapers)
JEL-codes: D21 L20 M (search for similar items in EconPapers)
Date: 2010-07-23
References: Add references at CitEc
Citations: View citations in EconPapers (2)
Downloads: (external link)
https://repub.eur.nl/pub/20455/ERS-2010-032-STR.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ems:eureri:20455
Access Statistics for this paper
More papers in ERIM Report Series Research in Management from 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 Contact information at EDIRC.
Bibliographic data for series maintained by RePub (peter.vanhuisstede@eur.nl this e-mail address is bad, please contact repec@repec.org).