This book argues that large corporations need to implement governance practices and processes that make them better innovators and that the challenge is to identify organizational principles and practices that provide the best chance of delivering innovative products to create a meaningful consumer experience. In this context, it is important to recognize that when we address organizational forms, we are not thinking of corporate governance in the sense of managing agency costs and ensuring regulatory compliance, but the more pressing business task of putting in place organizational systems and processes that facilitate value creation through continued and sustained innovation. The book examines how the contemporary concept and discourse of corporate governance may be obsolete or, at least, is increasingly disconnected from the needs and realities of the most innovative firms today. The concept of organizing for innovation―identifying process and practices that deliver the best opportunities for innovation―needs to take centre stage. This book aims to contribute to the nascent debate in this area by bringing together a series of chapters that examine various issues related to organizing for innovation.
Author(s): Mark Fenwick, Erik P.M. Vermeulen, Toshiyuki Kono, Tronel Joubert
Series: Perspectives in Law, Business and Innovation
Publisher: Springer
Year: 2022
Language: English
Pages: 187
City: Singapore
Preface
Contents
About the Authors
List of Figures
List of Tables
1 Organizing-for-Innovation
1.1 The Corporation Today
1.2 Corporations, Corporate Governance and the Corporate Attitude
1.3 The Evolving Purpose of a Corporation
1.3.1 Products and Services
1.3.2 People
1.3.3 Structure and Process
1.4 Conclusion
References
2 The Board of Directors as a Missed Opportunity
2.1 Revisiting the Board of Directors
2.2 Lessons from the Most Innovative Companies in the World
2.3 Board Evaluation
2.4 Regulatory Approaches to Board Evaluation
2.4.1 Countries Without Specific Board Evaluation Regulations
2.4.2 Countries with Board Evaluation Requirements in Their Corporate Governance Code
2.4.3 Countries That Oblige Board Evaluation in Rules and Regulations
2.5 Institutionalizing an Effective Evaluation Culture
2.5.1 When to Evaluate?
2.5.2 What to Evaluate?
2.5.3 Who Evaluates?
2.5.4 How to Disclose?
2.6 Conclusion
References
3 Mobilizing Institutional Investors
3.1 The New Significance of Institutional Investors
3.2 Democratizing Corporate Governance
3.3 Defining Institutional Investors and Engagement Strategies
3.3.1 Categorizing Institutional Investors
3.3.2 Engagement Strategies
3.4 Mapping the International Landscape
3.4.1 Countries with a Relatively High Level of Exposure to Alpha Shareholder Engagement
3.4.2 Countries with Moderate, but Increasing, Levels of Exposure to Alpha Shareholder Engagement
3.4.3 Countries with a Traditionally Low Level of Exposure to Alpha Shareholder Engagement
3.5 Regulatory Measures Aimed at Promoting Investor Engagement
3.5.1 General Shareholder Rights
3.5.2 Special Shareholder Rights
3.5.3 Disclosure of Ownership and Control Information
3.5.4 Coordination Between Investors
3.5.5 Board Composition
3.5.6 Remuneration
3.5.7 Voting Policies
3.5.8 Stewardship Codes
3.6 Conclusion
References
4 Corporate Venturing Strategies to Foster Innovation
4.1 Corporate Venturing Defined
4.2 The Multiple Challenges Facing Large Corporations Today
4.2.1 Shorter Waves and Faster Pace of Innovation
4.2.2 Anti-corporate Sentiment
4.2.3 Talent Retention
4.2.4 Organizational Complexity
4.2.5 The Corporate Attitude
4.3 Corporate Venturing Strategies
4.3.1 Investing Directly in Startups
4.3.2 Investing Indirectly in Startups
4.3.3 Partnering with Incubators and Accelerators
4.3.4 Creating an Environment for Serendipity
4.3.5 Acquiring and Retaining Founder-Entrepreneurs
4.3.6 Turning Employees into Entrepreneurs
4.3.7 An Entrepreneurial Corporate Venturing Culture
4.4 Conclusion
References
5 Corporate Governance and New Technology
5.1 Going Digital
5.2 The Digitalization of Everything
5.3 Amplification Effects and Radical Uncertainty
5.4 Disintermediation and Disaggregation
5.5 Retrofitting
5.6 Conclusion
References
6 Blockchain and the Disruption of Corporate Organizations
6.1 The Corporation as Centralized, Hierarchical Organization
6.2 Distributed Ledgers and the Disruption of a Centralized World
6.3 Community-Driven Corporate Governance and the DAO
6.4 Conclusion
References
7 The Future of the Corporation
7.1 The History of the Corporation Re-visited
7.2 A New Purpose for the Corporation
7.3 The Business Ecosystems of Tomorrow
7.3.1 Technology in the Service of Delivering a Unique End-User Experience
7.3.2 A Flat, Fluid, Inclusive Organization and Culture
7.3.3 Open Communication
7.3.4 Partnering-for-Innovation
7.3.5 Digital Leadership
7.4 Conclusion
References
8 Regulation Tomorrow
8.1 Corporate Governance and the Simulacrum of Compliance
8.2 Managing Innovation in an Age of Cognitive and Normative Uncertainty
8.3 Regulatory Experimentation
8.4 Conclusion
References
