Corporate Strategy, Governance Structure and Organization Performance: A Research Agenda

Abstract

Corporate strategy plays a critical role in the proper functioning of an organization as it provides the blueprint that guides the corporate direction of an organization while governance structure presents an organization with a framework for the distribution of responsibilities and resources to achieve organization performance. While the constructs have been sufficiently studied and documented in various studies separately in relation to organization performance, few studies have been undertaken to study the two constructs together to understand how they jointly explain organization performance. This paper presents a review of the extant theoretical and empirical literature on the two constructs in relation to organization performance. Relevant underpinning theories are reviewed, constructs described and their operational indicators identified and compared with empirical work and emergent knowledge gaps identified. The paper finally proposes a multidisciplinary based theoretical model suitable to address the gaps identified to advance knowledge in the area and calls upon future research to empirically test the propositions of the study.