Navigating Global Business: A Comparative Analysis of Rule-Based and Principle-Based Governance Systems in Global Strategy
Abstract
This paper examines the comparative aspect of rule-based and principle-based governance systems on global business strategy. Rule-based systems that are detailed and prescriptive can be clear to all, yet inflexible — whether due in part, I would presume (sic), as well as rule-bounded societal culture influences. By contrast, principle-based systems found in areas like the EU and the U.K. provide more flexibility by defining business requirements as broad ethical policies that organizations must interpret themselves to implement for their specific circumstances. However, it comes with many interpretation challenges, sometimes making it troublesome or confusing. This paper uses case studies of companies in the tech and financial sectors to explore how firms operate within these regulatory frameworks, mainly when regulating technologically novel offerings (Bartlett & Ghoshal, 1991). Businesses must balance compliance with nimbleness and design a governance strategy that can live in both regulatory worlds based on actionable research highlighting key findings. The impact of culture on governance systems cannot be understated, which is why local knowledge and partnerships are essential for the achievement of success. The authors provide implications for business leaders, inspire further research on hybrid governance models, and draw attention to the impact of technological innovation on global regulatory frameworks.
Citations
IRE Journals:
Miriam Gande , Angeline N Kaiyo , Kudakwashe Artwell Murapa , Munashe Naphtali Mupa
"Navigating Global Business: A Comparative Analysis of Rule-Based and Principle-Based Governance Systems in Global Strategy" Iconic Research And Engineering Journals Volume 8 Issue 4 2024 Page 514-528
IEEE:
Miriam Gande , Angeline N Kaiyo , Kudakwashe Artwell Murapa , Munashe Naphtali Mupa
"Navigating Global Business: A Comparative Analysis of Rule-Based and Principle-Based Governance Systems in Global Strategy" Iconic Research And Engineering Journals, 8(4)
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