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Corporate Governance in Achieving Competitive Advantage

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Submitted By mahzabin
Words 5798
Pages 24
“Corporate Governance in achieving Sustainable Competitive Advantage”
Abstract
Researchers, academics and theorists in the business fields have different opinions when the source of corporate success in concerned. They have different values and ideas depend on their ideological persuasions concerning the success and failure of business organizations regardless their size, country of origin and industry in which they are competing. This research paper is approached to give a review, put together and find out the limitations on the earlier scattered literature on the respective sections which consists of mainly two topics. The first topic is rooted in and originated from traditional economic theory and industrial organization tradition. The second one has originated from a resource and competency based view of business organizations. Both approaches are centered on techno-economic factors of sustainable competitive advantage. Very less importance is given to the role and impact of top manager’s actions and their organizational behavior in the overall profitability and competitiveness of a business firm. The loyalty, commitment and pro-activeness of top level management is seen and tried to be proven as potential source of competitive advantage for business organization by this research paper. It is very commonly and frequently found that, top level management usually tend to be self-serving, avoiding risks and not motivated and loyal to the growth and long run profitability of their respective business organizations. In the earlier period of business culture, these issues and problems were not as much important as they are in today’s era of global competition due to extensive globalization. Using non parametric tests on a Canadian sample, we found evidence of top manager’s opportunism. It is also unveiled that, owner controlled business organizations are more

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