Divergence and Convergence within Anglo-American Corporate Governance Systems : Evidence From the US and UK, 1950-2000

The objective of this article is to compare the United States and British systems of business organisation and corporate governance during the last 50 years. Of particular interest is the contrasting relationship between governance systems and the pursuit of diversification and refocusing strategies. In order to explain these relationships, a theoretical model integrating the firm’s resource base with the main aspects of corporate governance to explain strategy, structure and managerial behaviour is developed. It is then applied to examine changes in the United States and British corporate economies in the period 1950–2000