Roles of Relationships Between Large Shareholders and Managers in Radical Innovation: A Stewardship Theory Perspective

Radical innovation is critical for firms to enhance their competitiveness. Whether they can achieve it, however, depends on organizational factors, including the corporate governance of the firm. In emerging economies in which shareholder protection is weak, large shareholders are widely used as an efficient governance mechanism to reduce agency problems. The literature on agency theory contains conflicting arguments regarding the role of large...