Corporate Governance in a Networked Age

Abstract

In a networked and digital age, we need to rethink the structure of the modern corporation. In order to survive and grow, corporations must operate with a new set of assumptions and principles in order to remain relevant, competitive, and successful. Consider the growing number of technology startup companies that are doing something that once seemed unthinkable: challenging and disrupting traditional corporate giants. Even the behemoths that operate in industries that traditionally were not viewed as technology-related industries have not been spared from the impact of new arrivals and the resulting transformation in the business environment. With the rise of digital technologies, every corporation must now become agile, innovative and, more importantly, act as though they are dynamic technology companies. Ignoring the challenge of the networked age and the digital revolution is no longer an option as it will merely accelerate the failure and decline of large corporations. So, how should large, well-established corporations operate in today’s business environment?

Keywords: big data, board of directors, business model, CEO, corporate governance, digital culture, disruptive innovation, entrepreneurship, founders, innovation, investor relations, leadership, mutual trust, networks, principal-agent theory, social media, value creation

JEL Classification: D21, D23, F23, F65, G34, J41, K22, L14, L21, L22, L26, M13, O32