Published Online:January 2025
Product Name:The IUP Journal of Corporate Governance
Product Type:Article
Product Code:IJCG050125
DOI:10.71329/IUPJCG/2025.24.1.89-106
Author Name:Rajeev Verma
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:89-106
Firms ensure accountability, fairness, and transparency in their operations by establishing formal corporate governance structures. While these structures are critical for organizations’ proper functioning and sustainability, they face several challenges in translating their interventions into measurable firm outcomes. Firms often use strategic flexibility as a tool to overcome such challenges. Ensuring corporate governance for business model innovation involves several key aspects that help sustainable growth. With technological changes and unexpected crises like Covid-19, corporate governance readiness has garnered huge attention from academics and practitioners in the last few years. However, very few empirical studies have been conducted to understand the role of corporate governance in explaining business models. Therefore, this study explores the role of strategic flexibility and digital transformation in translating corporate governance readiness into business model innovation in the context of Indian banks. For this study, data was collected from 171 banking professionals. The data analysis was done using Smart-PLS 3.3. The findings indicate that strategic flexibility and digital transformation are crucial in translating corporate governance into business model innovation by providing a framework for decision-making and accountability.
Corporate governance refers to the structures, processes, and practices through which companies are directed and controlled. It includes decision-making frameworks, board of directors’ roles, management, stakeholders, and policies that ensure accountability, fairness, and transparency in a company’s operations (Bobillo et al., 2018; and Ciftci et al., 2019).