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Academy of Management Review Vol. 30 No. 2 2005

Deregulatory Forms, Variations in the Speed of Governance Adaptation, and Firm Performance

Bongjin Kim1; John E. Prescott2

1 University of Texas at San Antonio · 2 University of Pittsburgh

Abstract

Government regulation in an industry is an intermediary in the principal-agent relationship that acts as a substitute for internal governance mechanisms. We propose a model for studying how different forms of deregulation (frame-breaking, metamorphic, piecemeal, and plodding) impact variations in the speed of adaptation of internal governance mechanisms to the theoretical predictions of agency theory and resulting performance implications. We develop illustrative propositions for a set of contingencies that moderate the above relationship. How government and firms manage the deregulatory process has important economic and social consequences.

DOI
10.5465/amr.2005.16387896
Volume
30
Issue
2
Pages
414-425
Language
en
Sources
openalex ris:amr.ris crossref

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