An analysis of the research literature published between 1974 and 2019 provides insight into how international corporate governance research evolved over the decades before the covid pandemic.
Jaime Guerrero-Villegas and Mar Bornay-Barrachina of the Department of Management at the University of Cádiz, and Leticia Pérez-Calero and Mónica Santana of the Department of Management and Marketing at the Pablo de Olavide University in Seville, Spain, used sophisticated bibliometric techniques to outline changes in the themes and theories within the field.
The team writes in the European Journal of International Management that the earlier research papers tended to focus on Agency Theory and homed in on the impact of risk-taking on the decision-making processes. In more recent work, there was a transition towards the exploration of the human and social aspects of governance. In those papers, theories such as upper echelons and dependence theory gained more prominence underscoring the importance of board composition and executive dynamics in how corporate strategy is shaped. This was particularly relevant in the context of international commerce.
The team has identified four distinct periods, with the more recent period, 2016 to 2019, having the greatest diversity of research themes. Indeed, the findings suggest that there has been a growing interest in understanding how boards of directors influence the internationalization efforts of companies. In addition, topics such as corporate social responsibility (CSR) and the challenges faced by family-owned businesses in international markets came to the fore in the later research analysed.
The analysis also shows that while traditional views regarding board independence have declined over the years there has been an increase in research into board diversity, in particular regarding gender. Those studies suggest that company boards with diverse membership see improved strategic decision-making, approaches to market entry, and the fostering of innovation.
The EJIM review and analysis of almost half a century of research into International Corporate Governance reveals how it has evolved in that time. The findings have implications for future research as well as international management practice.
Guerrero-Villegas, J., Pérez-Calero, L., Santana, M. and Bornay-Barrachina, M. (2024) ‘International corporate governance: a science mapping approach’, European J. International Management, Vol. 22, No. 4, pp.616–646.