Firm Capability, Corporate Governance, and Firm Competitive Behavior: A Multi-theoretic Framework

Jinyu He and Joseph T. Mahoney
Additional contact information
Jinyu He: Hong Kong U of Science and Technology
Joseph T. Mahoney: U of Illinois at Urbana-Champaign

Working Papers from University of Illinois at Urbana-Champaign, College of Business

Abstract: This paper identifies firm-level competitive activity, one of the key units of analysis in competitive dynamics research, as the fundamental mediation between corporate governance and firm-level financial performance. By employing the "Motivation-Capability" logic embodied in the competitive dynamics research literature, we reclassify various practices of corporate governance into motivational mechanisms ("motivation") and resource acquisition and securing mechanisms ("capability"). Based on this reclassification, the current paper develops a multi-theoretic framework for studying the relationships among firm-level capability, corporate governance, and firm-level competitive behavior (which are characterized both by the level and variety of firm-level competitive activity). We maintain that the firm's capability influences the potential scale and scope of its competitive activity. And, the "motivation" components of corporate governance system moderate such a relationship. In addition, the "capability" components of corporate governance supplement firm capability, thus having direct effects on firm-level competitive behavior as well.

Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.business.illinois.edu/Working_Papers/papers/06-0103.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.business.illinois.edu/Working_Papers/papers/06-0103.pdf [301 Moved Permanently]--> https://giesbusiness.illinois.edu/Working_Papers/papers/06-0103.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:ecl:illbus:06-0103

Access Statistics for this paper

More papers in Working Papers from University of Illinois at Urbana-Champaign, College of Business Contact information at EDIRC.
Bibliographic data for series maintained by ().