Document Type
Article
Publication Date
2018
DOI
10.5465/amr.2014.0394
Publication Title
Academy of Management Review
Volume
43
Issue
1
Pages
87-109
Abstract
We develop the concept of corporate governance deviance and seek to understand why, when, and how a firm adopts governance practices that do not conform to the dominant governance logic. Drawing on institutional theory, coupled with both the entrepreneurship and corporate governance literature, we advance a middle-range theory of the antecedents of corporate governance deviance that considers both the institutional context and firm-level agency. Specifically, we highlight the centrality of a firm's entrepreneurial identity as it interacts with the national governance logic to jointly create corporate governance discretion (i.e., the latitude of accessible governance practices) within the firm. We argue that as a firm's governance discretion increases, it will be more likely to adopt overconforming or underconforming governance practices that deviate from established norms and practices. Moreover, we propose that adopting a deviant corporate governance practice is contingent on the governance regulatory environment and a firm's corporate governance capacity. We conclude by advancing a new typology of corporate governance deviance based on a firm's over- or underconformity with the dominant national logic, as well as its entrepreneurial identity motives. This globally relevant study refines and extends comparative corporate governance research and enriches our current understanding of the institutional logics perspective.
ORCID
0000-0002-2070-1942 (Siri Terjesen)
Original Publication Citation
Aguilera, R. V., Judge, W. Q., & Terjesen, S. A. (2018). Corporate governance deviance. Academy of Management Review, 43(1), 87-109. doi:10.5465/amr.2014.0394
Repository Citation
Aguilera, Ruth V.; Judge, William Q.; and Terjesen, Siri A., "Corporate Governance Deviance" (2018). Management Faculty Publications. 10.
https://digitalcommons.odu.edu/management_fac_pubs/10
Included in
Business Administration, Management, and Operations Commons, Strategic Management Policy Commons
Comments
Note: This is the author's post-print of a work published in Academy of Management Review.
The publisher's version is available at: https://doi.org/10.5465/amr.2014.0394