Corporate Governance as a Source of Competitive Advantage

That corporate governance can be a form of competitive advantage is well settled in the Law and Management literature. This chapter reviews the work that helped establish this tie. The primarily purpose of this chapter is to survey the existing literature and to suggest trends. Part I defines corporate governance and key sources of laws and norms of governance. Part II defines competitive advantage. Part III acknowledges the logical limits of corporate governance as a source of competitive advantage. Part IV describes the internal and external effects of corporate governance that confer competitive advantage. Part V describes the influence of the UN in tying corporate governance, and its competitive advantages, together with environmental and social issues as ESG. Part VI describes the six mechanisms that have emerged in the literature to measure corporate governance effects on competitive advantage, and how they also include ESG. The chapter closes with thoughts on the literature and ways in which it may move forward