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The governance of innovative firms: An evolutionary perspective

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  • Jackie Krafft
  • Jacques-Laurent Ravix

Abstract

Corporate governance has been in the recent years one of the most debated issues in conventional economic approaches. Agency theory combined with financial indicators has particularly contributed to the development of shareholder value as a key concept in companies' governance both at a theoretical and empirical level. We argue that an evolutionary perspective can be developed on the governance of innovative firms since (1) conventional economic approaches only consider a restricted part of this complex issue, and (2) this restricted vision applied in practice has driven the economic system into major coordination problems and turbulences. On the basis of empirical investigations into the telecommunications industry, and guided by a simple model of evolutionary game, we propose new principles of corporate governance centered upon managerial entrepreneurship and its role on innovation and industry dynamics. The outcome is a set of rules of conduct for the manager and the shareholder.

Suggested Citation

  • Jackie Krafft & Jacques-Laurent Ravix, 2005. "The governance of innovative firms: An evolutionary perspective," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(3), pages 125-147.
    • Handle: RePEc:taf:ecinnt:v:14:y:2005:i:3:p:125-147
    DOI: 10.1080/1043859042000226248
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    References listed on IDEAS

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    1. Marie Carpenter & William Lazonick & Mary O’ Sullivan, 2003. "The stock market and innovative capability in the New Economy : the optical networking industry," Post-Print hal-02447314, HAL.
    2. Jackie Krafft & Jacques-Laurent Ravix, 2000. "Competition and industrial coordination," Post-Print hal-00212287, HAL.
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    4. Jackie Krafft (ed.), 2000. "The Process of Competition," Books, Edward Elgar Publishing, number 1912.
    5. Kandori, Michihiro & Mailath, George J & Rob, Rafael, 1993. "Learning, Mutation, and Long Run Equilibria in Games," Econometrica, Econometric Society, vol. 61(1), pages 29-56, January.
    6. Raghuram G. Rajan & Luigi Zingales, 2001. "The Influence of the Financial Revolution on the Nature of Firms," American Economic Review, American Economic Association, vol. 91(2), pages 206-211, May.
    7. Jorgen W. Weibull, 1997. "Evolutionary Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262731215, December.
    8. Jean‐Jacques Laffont & David Martimort, 1997. "The Firm as a Multicontract Organization," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 6(2), pages 201-234, June.
    9. David J. Teece & Richard Rumelt & Giovanni Dosi & Sidney Winter, 2000. "Understanding Corporate Coherence: Theory and Evidence," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 9, pages 264-293, Edward Elgar Publishing.
    10. Pier P. Saviotti, 1996. "Technological Evolution, Variety and the Economy," Books, Edward Elgar Publishing, number 727.
    11. Jackie Krafft & Jacques-Laurent Ravix, 2000. "Competition and industrial coordination in Krafft J. (ed.)," Post-Print halshs-00464275, HAL.
    12. Malerba, Franco & Orsenigo, Luigi, 1996. "The Dynamics and Evolution of Industries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 5(1), pages 51-87.
    13. Jackie Krafft, 2000. "The Process of Competition," Post-Print hal-00463577, HAL.
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    Citations

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    Cited by:

    1. Muhammad Asif Joyo & Waqas Mahmood & Wajahutallh Khan, 2018. "Investigating The Stochastic Relationship Between Ownership And Firm Financial Performance: An Evidence From Listed Psx (Pakistan Stock Exchange) Sugar Companies Of Pakistan," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 14(1), pages 14-16.
    2. J. Krafft & J. -L. Ravix, 2008. "Corporate Governance And The Governance Of Knowledge: Rethinking The Relationship In Terms Of Corporate Coherence," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(1-2), pages 79-95.
    3. Jackie Krafft & Yiping Qu & Jacques-Laurent Ravix, 2011. "Gouvernance d'entreprise et performances sectorielles : une réévaluation de la fiabilité des scores et des mesures de bonne gouvernance," Economie & Prévision, La Documentation Française, vol. 0(1), pages 145-158.
    4. Michael Dietrich & Jackie Krafft & Jacques-Laurent Ravix, 2008. "Regulation and governance of the firm," Post-Print hal-00203479, HAL.
    5. Jackie Krafft, 2010. "Profiting in the info-communications in the age of broadband: lessons and new considerations," Post-Print hal-00203801, HAL.
    6. Jackie Krafft & Jacques-Laurent Ravix, 2008. "Corporate Governance in Advanced Economies: Lessons in a Post Financial Crash Era.. Introduction to the Special Issue," Recherches économiques de Louvain, De Boeck Université, vol. 74(4), pages 419-424.
    7. Jackie Krafft, 2008. "Firm," Post-Print hal-00207817, HAL.
    8. Jackie Krafft & Yiping Qu & Francesco Quatraro & Jacques-Laurent Ravix, 2014. "Corporate governance, value and performance of firms: new empirical results on convergence from a large international database," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 23(2), pages 361-397.
    9. Jackie Krafft & Jacques-Laurent Ravix, 2005. "The governance of innovative firms: an evolutionary approach," Post-Print hal-00203620, HAL.
    10. Hölzl, Werner, 2006. "Convergence of financial systems: towards an evolutionary perspective," Journal of Institutional Economics, Cambridge University Press, vol. 2(1), pages 67-90, April.
    11. Thomas Grebel & Jackie Krafft & Pier-Paolo Saviotti, 2006. "On knowledge intensive industry life cycles," Post-Print hal-00203585, HAL.
    12. Thomas Grebel & Jackie Krafft & Pier-Paolo Saviotti, 2006. "On the Life Cycle of Knowledge Intensive Sectors," Revue de l'OFCE, Presses de Sciences-Po, vol. 97(5), pages 63-85.
    13. Muhammad Asif Joyo & Waqas Mahmood & Wajahutallh Khan, 2018. "Investigating The Stochastic Relationship Between Ownership And Firm Financial Performance: An Evidence From Listed Psx (Pakistan Stock Exchange) Sugar Companies Of Pakistan," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 14(1), pages 69-80.
    14. Antonelli, Cristiano, 2005. "The Governance Of Localized Knowledge: An Information Economics Approach For The Economics Of Knowledge," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200502, University of Turin.
    15. repec:hal:wpaper:hal-00786664 is not listed on IDEAS
    16. Jackie Krafft & Jacques-Laurent Ravix, 2009. "The Governance of the Knowledge-Intensive Firm in an Industry Life Cycle Approach," Chapters, in: Mario Morroni (ed.), Corporate Governance, Organization and the Firm, chapter 3, Edward Elgar Publishing.
    17. Jackie Krafft & Yiping Qu & Jacques-Laurent Ravix, 2008. "Corporate governance, industry dynamics and firms performance on the stock market," Post-Print hal-00203544, HAL.

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