Homogenization of governance and the role of managers

Abstract

The American (economic) idea of corporate governance has prompted institutional homogenization, which differs from competitive homogenization in that it does not signify an increase in organizational efficiency. The panic over internal controls in Japan, sparked by SOX regulations in the United States, suggests the possibility of obstructing investigations into causes. Thus, the time has come to place the “spirit of capitalism” back into an iron cage.