The globalization of corporate governance in East Asia: the transnational solution

Corporate governance is one of the primary mechanisms by which an organization interfaces with its environment. As globalization proceeds, firms must effectively manage corporate governance practices to reap the promised benefits of the new integrated global economy. In East Asia, firms face  increasing pressure to provide governance systems that meet international investors' expectations. Yet this creates tension as corporate governance practices are embedded in local institutions and culture. As a result, firms are frequently torn between providing what global investors expect and what the local culture will support. In addition, managing corruption and the Principal-Principal problem are every present with governance, particularly across borders to developing economies. 

Young, M. N., Ahlstrom, D. & Bruton, G. D. 2013. The globalization of corporate governance in East Asia: the transnational solution. In S. J. Daniel & W. Reitsperger (Eds.). Management and International Review: Challenges of Globalization, 31-50. New York: Springer Science+Business Media.