TY - JOUR
T1 - The Great Leap Forward: The Transition From Relation-Based Governance To Rule-Based Governance
AU - Li, Shaomin
AU - Park, Seung Ho
AU - Li, Shuhe
PY - 2004
Y1 - 2004
N2 - This paper introduces a cost-based, dichotomous theoretical framework of governance to the studies of strategic management and international business. Our paper compares the nature and dynamics of relation-based governance with those of rule-based governance. The framework is applied to provide new insights into international and firm-level differences in industry structure, management systems, strategic practices, innovation, and the international flow of capital, human assets, and trades. We also discuss the evolutionary transformation of relation-based systems of governance into rule-based systems of governance under conditions of economic development and intensified competition. Policy and strategic recommendations are made based on the theory.
AB - This paper introduces a cost-based, dichotomous theoretical framework of governance to the studies of strategic management and international business. Our paper compares the nature and dynamics of relation-based governance with those of rule-based governance. The framework is applied to provide new insights into international and firm-level differences in industry structure, management systems, strategic practices, innovation, and the international flow of capital, human assets, and trades. We also discuss the evolutionary transformation of relation-based systems of governance into rule-based systems of governance under conditions of economic development and intensified competition. Policy and strategic recommendations are made based on the theory.
U2 - 10.1016/j.orgdyn.2003.11.005
DO - 10.1016/j.orgdyn.2003.11.005
M3 - Journal
SN - 0090-2616
VL - 33
SP - 63
EP - 78
JO - Organizational Dynamics
JF - Organizational Dynamics
IS - 1
ER -
