Directorship Theory: Kuhn, the Copernican Monster and the Crisis in Capitalism
32 Pages Posted: 6 May 2012
Date Written: August 1, 2010
Research Issue: This paper proposes a general theory of corporate governance and identifies four conditions predicted to affect the performance of, and relationship between, boards and top managers.
Research Insights: A theory of corporate governance based on:
• formulating an irreducible purpose for the board; • identifying four antecedent meta or primary functions of the board; • creating a taxonomy of corporate governance tasks classified according to each function; and • determining the unique roles and types of behaviour for the board and top managers according to each function.
Theoretical and Academic Implications: The theory provides a framework to identify previously unrecognised relationships and conditions affecting the broader team responsible for performing the functions and tasks of directorship.
Practitioner & Policy Implications: The theory may be instructive in developing a comprehensive “standard” to inform the development of:
• alternative best practice recommendations; • minimum educational requirements for directors and top managers; and • more effective diagnostic models and instruments.
Keywords: Corporate Governance, Directorship, Governance Theory, Directorship Team, Board Top/Management Relationship[comma separated]
Suggested Citation: Suggested Citation