A CONCEPTUAL DISCUSSION ON ‘PATH DEPENDENCE’ AND ‘DEMAND FOR RETURNS’ ARGUMENTS: PRIVATE ENTERPRISE VERSUS SOE PERFORMANCE

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Abstract

Enterprise historicity has always been a precursor to how it is run in contemporary times. While it is common knowledge that enterprises brace up to the challenges of paradigmatic shifts in business, what is commonly overlooked both in research literature and by business practitioners is the subtle influence that the ex ante firm behavior exerts on any ex post decision. Some researchers have liberally drawn from scientific literature to explain this phenomenon as that of path dependence.
In this paper, an attempt is made to discuss the relevance of path dependence in enterprise behavior and supplement it with the ‘demand for returns’ argument which posits that private enterprises stand to perform better as against state-owned enterprises as a result of the stakeholders’ demand for their rightful share of value.

Key Words: Risk Management, Regulation, Corporate Governance, Germany, US, Legal Area

How to cite this paper: Bhasa, M. P. (2014). A conceptual discussion on ‘path dependence’ and ‘demand for returns’ arguments: Private enterprise versus SOE performance. Journal of Governance and Regulation, 3(4-1), 149-155. https://doi.org/10.22495/jgr_v3_i4_c1_p7