THE FOUNDATIONS OF GOVERNANCE THEORY: A CASE FOR THE RESOURCE-DEPENDENCE PERSPECTIVE

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Abstract

In this paper I distinguish between the justificatory and explanatory roles of theory, and propose that the justificatory role played in the literature thus far by agency theory is subject to limitations. I therefore argue for the use of resource-dependence theory as the epistemological basis of the corporate governance domain knowledge system, and present an alternate model of corporate governance. Potential contributions of this alternate model are discussed.

Keywords: Corporate Governance, Agency Theory, Resource Dependence Theory

How to cite this paper: Udayasankar, K. (2008). The foundations of governance theory: a case for the resource-dependence perspective. Corporate Ownership & Control, 5(4-1), 164-172. https://doi.org/10.22495/cocv5i4c1p1