Institutional Voids and Corporate Governance: A Conceptual Understanding

Abstract

Asian business firms and their fundamental business institutions are primarily embedded in socio-cultural
features. This institutional void argument outlines the indispensable role of informal Asian business institutions
in managing corporate governance. Under this argument, the study draws attention to the development of
business groups and networks in Asia and elucidates why Asian business groups and networks are important
elements regarding practical and operational dimensions of the Asian corporate sector. These uniqueness Asian
business characteristics are expound in relation to salient assumptions of different theories to understand and
provide practical knowledge about corporate governance choices made by Asian family firms.