Can Flexibility in Corporate Governance Enhance International Competitiveness? Evidence from Knowledge-Based Industries in India
Global Journal of Flexible Systems Management, 2016
22 Pages Posted: 6 May 2016 Last revised: 12 Sep 2016
Date Written: May 11, 2016
Firms play a key role in growth of India and there is a need to enhance their competitiveness significantly. For that, they may need higher flexibility in their governance systems. This paper explores the relationship between flexibility in corporate governance (CG) mechanisms and international competitiveness (IC) in two knowledge-based industries in India during the period from 2006 to 2014.Using multiple regression model, the results suggest that flexibility in CG significantly affects IC. In addition, IC increases with the increase in firm size in the presence of other factors such as research and development intensity, marketing intensity, business group affiliation and industry dummy. Thus, the study is a novel attempt to establish the relationship between flexibility in CG and IC.
Keywords: Corporate Governance, Flexibility in Corporate Governance, Innovation for Export Competitiveness, Knowledge-based Industries, R&D intensity, Marketing intensity
JEL Classification: G34, F14
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