Understanding and Managing Strategic Governance: Antecedents, Consequences, and Guidance

Description

Explore the interplay between corporate governance and strategic decision-making in this startling new resource In Understanding and Managing Strategic Governance, strategy and management experts Dr. Wei Shi and Robert E. Hoskisson deliver an insightful exploration of the influence that governance actors, like the board of directors, activist investors, institutional investors, and securities analysts, have on important strategic decisions. Based on surveying the latest research and analyzing unique datasets compiled by the authors, the book explains the impact that governance actors have on a firm’s strategic choices and the quality of such choices as well as the unintended consequences of that impact. The authors also describe how executives can manage the conflicting interests of multiple governance actors and leverage the influence of these actors to make effective strategic decisions. In this book, you’ll discover: How to avoid the strategic pitfalls that arise from governance actor influence and harm firms’ long-term competitiveness The effect that governance actors can have on corporate strategy, competitive strategy, corporate innovation strategy, global strategy, stakeholder strategy, and more The latest trends in corporate governance and their implications for managers, regulators, and policy makers in this area Perfect for C-level executives, board of directors, and institutional investors as well as students of corporate governance and strategy, Understanding and Managing Strategic Governance is a revealing and original examination of the interplay between corporate governance and firm strategy and how to manage that interplay to create sustainable competitive advantages. Cover Title Page Copyright Page Contents Preface About the Authors Chapter 1 Introduction to Strategic Governance and Internal Governance Actors Internal Governance Purposes for Boards of Directors Board Structure and Process: Effective Board Strategic Control and Monitoring Board Chair Board Committees Employees as Internal Governance Actors Chapter Overviews Notes Chapter 2 Introduction to External Governance Actors External Governance Actors with Direct Influence and Aligned Interests Institutional Investors Activist Investors Creditors External Governance Actors with Direct Influence and Differing Interests External Governance Actors with Indirect Influence and Aligned Interests External Governance Actors with Indirect Influence and Differing Interests Short Sellers Competitors Rating Agencies The Media Social Activists Interactions among External Governance Actors Coping with External Governance Actors Notes Chapter 3 Governance Actors and Corporate Strategy Governance Actors and Diversification Strategies Institutional Investors and Diversification Strategy Board Monitoring, Executive Compensation, and Diversification Strategy Governance and Strategic Alliances Governance and Acquisitions Governance and Divestitures Other Governance Actors: Proxy Intermediaries, Financial Analysts, and the Media Institutional Change, Governance, and Restructuring of Diversified Business Groups Summary of Fit or Misfit between Market Institutions and Current Diversification Strategy Leveraging Governance Actors to Pursue an Effective Corporate Strategy Leverage, Engage, and Defend Acquiesce and Defend Compromise and Change Connect and Avoid Notes Chapter 4 Governance Actors and Innovation Strategy Innovation Strategy Governance Actors’ Influence on Innovation Monitoring and Resource Provision Governance Actors with a Short-Term Orientation Resource Provision and Monitoring Governance Actors with a Long-Term Orientation Short-Term Oriented Governance Actors with a Focus on Information Disclosure Long-Term Oriented Governance Actors with a Focus on Information Disclosure Leveraging Governance Actors to Foster Appropriate Innovation Strategy Engage and Defend Connect and Engage Disclose, Manage, and Engage Disclose and Comply, Lobby, and Adjudicate Notes Chapter 5 Governance Actors and Competitive Strategy Resource Provision and Engaged Governance Actors Board of Directors Dedicated Shareholders Employees Transactional Governance Actors that Provide Resources Engaged Governance Actors without Resource Provision Transactional Governance Actors without Resource Provision Managing Governance Actors for a Winning Competitive Strategy Engage and Evaluate Leverage and Defend Manage and Co-Opt Isolate Notes Chapter 6 Governance Actors and Global Strategy Global Strategy Resource-Provision Governance Actors with Low Risk Tolerance Board of Directors Dedicated Shareholders Resource Provision Governance Actors with High Risk Tolerance Governance Actors with Low Risk Tolerance but No Resource Provision Governance Actors with High Risk Tolerance but No Resource Provision Influence of Financial Analysts and Competitors on Global Strategy Managing Governance Actors for a Winning Global Strategy Engage and Interact Leverage and Balance Manage Resist and Isolate Governance Actors and Legitimacy in Global Strategy Leverage Governance Actors to Manage Legitimacy Notes Chapter 7 Governance Actors and Stakeholder Strategy Stakeholder Strategy Engaged Governance Actors with a Strong Emphasis on Financial Objectives Long-Term Financial Investors Suppliers Transactional Governance Actors with a Strong Emphasis on Financial Objectives Short-Term Financial Investors Hedge Fund Activists Creditors Foreign Institutional Investors Engaged Governance Actors without a Strong Emphasis on Financial Objectives State Ownership Family Ownership The Board of Directors Customers Financial Analysts Social Activists Transactional Governance Actors without a Strong Emphasis on Financial Objectives Leverage Governance Actors to Pursue an Effective Stakeholder Strategy Evaluation and Engagement Proactive Disclosure and Engagement Recommendations for Board Members Notes Chapter 8 Governance Actors and Corporate Political Strategy Corporate Political Strategy Governance Actors and Choice of Corporate Political Strategy Engaged Governance Actors with a Resource Provision Role Transactional Governance Actors with a Resource Provision Role Engaged Governance Actors without a Resource Provision Role Transactional Governance Actors without a Resource Provision Role Managing Governance Actors to Create Political Advantages Step 1. Evaluate Governance Actors’ Preferences Step 2. Mind the Downside of Corporate Political Strategy Step 3. Leverage Governance Actors in Corporate Political Strategy Notes Chapter 9 Strategic Governance in a New Era Corporate Governance Trends Increasing Focus on Stakeholders in Governance Growing Shareholder and Stakeholder Activism Changing Board Focus The Governance Role of Platforms Managing Strategic Governance in a New Era Build Manage Engage Focus Governance-Executive Interaction Model Recommendations for Boards and Top Executives Notes Index EULA