Can Flexibility in Corporate Governance Enhance International Competitiveness? Evidence from Knowledge-Based Industries in India

Firms play a key role in growth of India and there is a need to enhance their competitiveness significantly. For that, they may need higher flexibility in their governance systems. This paper explores the relationship between flexibility in corporate governance (CG) mechanisms and international competitiveness (IC) in two knowledge-based industries in India during the period from 2006 to 2014.Using multiple regression model, the results suggest that flexibility in CG significantly affects IC. In addition, IC increases with the increase in firm size in the presence of other factors such as research and development intensity, marketing intensity, business group affiliation and industry dummy. Thus, the study is a novel attempt to establish the relationship between flexibility in CG and IC