Symbol or Substance? Board Reforms in the Japanese Electronics Industry

• Main Authors: AHMADJIAN, Cnristian, YOSHIKAWA, Toru
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2013
• Subjects: Corporate Finance; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3583
• Institution: Singapore Management University

This paper examines the diffusion of Anglo-American corporate governance around the world, with an examination of board reform in the Japanese electronics industry. We analyze two specific reforms: the corporate executive officer and board with committees systems. We argue that while board reforms in Japan diffused through mimetic processes consistent with neo-institutional theory, firms used these reforms to solve specific problems, consistent with behavioral theory of the firm. While institutional processes made board reforms salient and legitimate, firms adopted and shaped these reforms to fit their own circumstances, in particular, their strategies and performance conditions.