Top team characteristics and the business strategies of japanese firms

Abstract

This study is an extension of research which links top management team characteristics and the use of a variety of business strategies. Agency theory and information processing theory provided the framework used to investigate the complex business strategies of 219 Japanese firms in four sectors. Statistical results support our view that top team characteristics reflect important aspects of the corporate governance strategies needed to manage business strategies such as specialization, diversification and internationalization. Although there are substantial institutional differences in the business environments, it appears that there is increasing convergence in the Japanese and American approaches to corporate governance.