Social, cultural and institutional forces in corporate and patrimonial states and their relations with corporate governance: a North–South contrast

Abstract

Purpose: This study aims to examine two questions that contribute to understanding the organizational corporate governance forms of the so-called New World: What have been the social and cultural forces that gave rise to the institutional features of the Anglo-Saxon corporate states and the Hispanic patrimonial states? And how have these traits influenced the governance forms of North American and Latin American firms? Design/methodology/approach: A comparative historical analysis methodology that dates back to the colonial foundations of the New World was used. Analysis categories were derived to allow us to reflect on the phenomenon studied and support the hypotheses while deriving observations that explain the historical relationships of the state types and their capitalisms with contemporary corporate governance. The research also considered case analysis in context, presented as specific empirical evidence. Findings: The paper maintains that the historical social and cultural forces that were configured in the New World shaped the institutional features of the Anglo-Saxon corporate states with liberal capitalism and the Hispanic patrimonial states with hierarchical capitalism, and that these features are related to the predominant organizational corporate governance forms in North American and Latin American firms, respectively. Originality/value: This paper provides insights into the social, cultural and institutional factors that gave rise to corporate and patrimonial states and their relationships with the different types of organizational corporate governance. It introduces a categorization into the literature with three types of organizational corporate governance (e.g. corporatist, patrimonial and hybrid). This allows progress in linking corporate governance theories with a managerial focus and governance perspectives oriented to economic and social development. © 2024, Emerald Publishing Limited.