Innovative Systems Structure for Real Corporate Governance

Innovative Systems Structure for Real Corporate Governance

Copyright: © 2021 |Pages: 20
DOI: 10.4018/IJSDA.20211001.oa1
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Abstract

All around the world, trends of globalization and industrialization have been experienced both in the development of large corporations and conglomerates. These larges firms contribute enormously to the socio-economic development of countries. Adopting a systematic literature review method with in-depth content analysis, the paper explores the concept of corporate governance holistically from systems lens and proposes an innovative systems structure-based framework namely Cultural Legal Oriented Value Embedded (CLOVE) for corporate governance to enable better decision making. In this paper, the structure proposed refers to components of culture, legal, orientation, value embeddedness that may be internal or external to the firm and these components are those, which will have a role in undertaking effective corporate governance and wealth creation for shareholders and the firm.
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Background

Different countries have their economies organized in diverse ways, decisions about how capital is organized are equally diverse hence the countries follow different approaches towards CG. Further, STS is a contested acronym: some understand it as ‘science and technology studies’, while others see it as ‘science, technology and society’ (studies) or ‘social studies of science and technology’. For this paper STS stands for Science, Technology and Society, emphasizing the societal aspects of scientific and technological development (Omamo, Rodrigues & Muliaro, 2020). Moreover, countries are at different stages of development. Developing countries are different simply because the economies are not the same and the levels of economic development are not the same, thus implementation may not move at the same pace. Hence, for a better understanding of the trajectory of CG growth, a brief discussion on the adapted path to follow and implement CG in different countries is given below.

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