Abstract In this dissertation, I identify firm-level
competitive activity-one of the key elements of competitive dynamics research-as the most prominent mediation between corporate
governance and firm-level
financial performance. Accordingly, this dissertation focuses on the linkage between corporate governance and firm-level competitive behavior (characterized by the level and variety of firm-level competitive activity) to attempt to resolve the inconclusive and long-puzzling relation between corporate governance and firm-level financial performance. I reclassify various practices of corporate governance by employing the 'Motivation-Capability' logic. Based on this reclassification and a