The Foundations of Governance Theory: A Case for the Resource-Dependence Perspective
Corporate Ownership & Control, Vol. 5, pp. 164-172, Summer 2008
29 Pages Posted: 3 Sep 2008
Date Written: 2008
In this paper I distinguish between the justificatory and explanatory roles of theory, and propose that the justificatory role played in the literature thus far by agency theory is subject to limitations. I therefore argue for the use of resource-dependence theory as the epistemological basis of the corporate governance domain knowledge system, and present an alternate model of corporate governance. Potential contributions of this alternate model are discussed.
Keywords: Agency theory, resource-dependence theory, corporate governance
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