Stages of Corporate Governance In Transition Economies

We develop a model of corporate governance stages in transition economies,including bureaucratic control-based; relational; and rule, market-based corporategovernance. We demonstrate how institutions shape stakeholders’ dominant sourcesof control power and firms’ dominant origins of resources within and across thesestages. We then theorize how these driving forces influence the effectiveness of thesecorporate governance stages, and how the shift from one stage of corporate governanceto another comes about. Our paper therefore contributes to the understandingof the development and nature of corporate governance in transition economies.