engleski

Positioning corporate governance in the context of competitive dynamics

Good corporate governance requires an effective strategic management process to be in place. However, processes of strategic management have been under a substantial pressure for changes since modern highly competitive environment imposes growing complexity, accelerated technological innovation and globalization leading companies for more vigorous market battle in which they try to achieve better performance undertaking moves not only much frequent but also with a huge repertoire of competitive moves. Competitive dynamics among firms implies constant relying on its dynamic capabilities and a substantial change in a company’s strategic objectives: every advantage gained over the rivals is rapidly imitated and surpassed. Organizations are constantly seeking new competitive strategies and develop dynamic capabilities to ensure longevity. Corporate governance has to ensure that in these conditions also different mechanism and corporate governance structures control managers to ensure that their actions and competitive repertoire are in line with shareholder interests. In that sense, the goal of the paper is to provide theoretical perspective of the position of corporate governance and the role it has in competitive dynamics among companies. The paper analyzes how strategic management and corporate governance interplay in dynamic complexity and competitive environment, analyzing different cause and effect relationship among them.

Competitive environment; Competitive dynamics; Corporate governance; Dynamic capabilities

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