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Article
Publication date: 30 November 2020

Matthew Smith and Yasaman Sarabi

It has been over 20 years since the landmark publication of Mizruchi (1996) and his examination of “what do interlocks do?”. Since then, the nature of interlocks and…

Abstract

Purpose

It has been over 20 years since the landmark publication of Mizruchi (1996) and his examination of “what do interlocks do?”. Since then, the nature of interlocks and subsequent research on the subject has evolved. This paper aims to revisit the literature on interlocking directorates through a quantitative bibliometric analysis.

Design/methodology/approach

This study undertakes a bibliometric analysis of literature citing the Mizruchi (1996) to examine the state of research following up on “what do interlocks do”. This study examines 718 publications using keyword and co-word analysis, along with a thematic analysis to revisit the research that has followed Mizruchi’s topic of what do interlocks do.

Findings

This study finds that the topics of the corporate elite, capitalist economy and corporate governance have remained prominent themes in the field. Research areas that are emerging in the field of interlocking directorates include gender diversity, globalisation and advancing theoretical frameworks.

Originality/value

This paper provides a quantitative bibliometric analysis to revisit the extant literature on “what do interlocks do”, examining a high number of articles to identify areas which could be developed to advance research in the field.

Details

Management Research Review, vol. 44 no. 4
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 27 August 2019

Rosa Caiazza and Michele Simoni

Over the last 100 years, research on interlocking directorates has proliferated. The purpose of this paper is to realize a bibliometric analysis of articles on interlocking

Abstract

Purpose

Over the last 100 years, research on interlocking directorates has proliferated. The purpose of this paper is to realize a bibliometric analysis of articles on interlocking directorates to identify the evolutionary patterns that characterize the studies on board interlocks.

Design/methodology/approach

A bibliometric analysis of articles on interlocking directorates published since 1914 was realized to evidence how research has evolved over time. Papers were classified according to the research topic, the type of article and the use of different theories to explain board interlocks’ causes and effects.

Findings

The authors identified four different periods that characterize board interlocks studies: the emerging debate, the earliest modern era, the modern era and the post-modern era.

Originality/value

This bibliometric analysis assesses the extant literature by highlighting emerging trends and identifying several avenues for future research.

Details

Management Decision, vol. 57 no. 10
Type: Research Article
ISSN: 0025-1747

Keywords

Book part
Publication date: 1 October 2008

Val Burris

This chapter examines interlocks among the governing boards of 12 leading policy-planning organizations and changes in the structure of this network between 1973 and 2000…

Abstract

This chapter examines interlocks among the governing boards of 12 leading policy-planning organizations and changes in the structure of this network between 1973 and 2000. Methods of multidimensional scaling and hierarchical clustering are used to construct topographical maps of the pattern of interlocks among policy-planning groups and their change over time. In contrast to the findings on corporate interlocking directorates, the study shows that board interlocks among policy-planning organizations are substantively meaningful and relatively stable at the dyadic level, although several changes in the topology of the network are also found. In all three decades, big-business “moderate-conservatives” like the Business Council and the Business Roundtable occupied the most central locations in the network. In the 1970s these organizations were linked with the “corporate liberals” to form the core cluster of the policy network. In the 1980s and 1990s the corporate liberals became relatively isolated from the core and their places were taken by several conservative groups. There was also a sharp rise in the cohesion of the network in the late 1970s and 1980s – a period that is widely seen as one of conservative political mobilization and heightened political unity among business elites. These changes in the structure of the policy network are consistent with and help to account for the rightward shift in U.S. state policy during this period.

Details

Politics and Public Policy
Type: Book
ISBN: 978-1-84855-178-7

Article
Publication date: 15 June 2021

Yasaman Sarabi, Matthew Smith, Heather McGregor and Dimitris Christopoulos

The relationship between interlocking directorates and firm performance has been increasingly debated, with a focus on whether firm's centrality in interlock networks is…

Abstract

Purpose

The relationship between interlocking directorates and firm performance has been increasingly debated, with a focus on whether firm's centrality in interlock networks is associated with performance. The purpose of this study is to examine not only how a firm's position in this network is associated with performance but also how the performance of network partners can impact a firm's performance. This study examines how firms effectively utilise the interlock network to achieve the goal of higher market capitalisation – termed market capitalisation rank (MCR).

Design/methodology/approach

The premise of the study is the UK FTSE 350 firms from 2014 to 2018. The paper makes use of a temporal network autocorrelation model to examine how firm characteristics, the structural position in the interlock network and the performance of network partners affect MCR over time.

Findings

The analysis indicates that firms with ties (via the interlock network) to firms with high market capitalisation are more likely to enhance their own MCR, highlighting network partners have the opportunity to play a critical role in a firm's dominance strategy to optimise firm value.

Originality/value

The value of this research is that it does not only look at the impact of a firm's position in the network on performance, but the impact of the performance of network partners on a firm's market performance as well.

Details

Management Decision, vol. 60 no. 1
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 11 July 2019

Andreas Andrikopoulos, Andreas Georgakopoulos, Anna Merika and Andreas Merikas

This paper aims to explore the effect of interlocking directorates on agency conflicts and corporate performance in the shipping industry.

Abstract

Purpose

This paper aims to explore the effect of interlocking directorates on agency conflicts and corporate performance in the shipping industry.

Design/methodology/approach

The authors use social network analysis to discover central nodes in the network of personal and corporate connections in an international sample of 110 listed shipping companies.

Findings

Assessing network structure, the authors find that the network of corporate leaders is denser than the network of shipping companies. The network of shipping companies is populated with many isolated nodes; the network of shipping executives and directors is populated with many cohesive groups in which the longest distance between two corporate leaders is two companies. The authors find that interlocking corporate leadership can help resolve agency conflicts in the shipping industry, bearing a negative effect on the magnitude of agency costs. The extent of leadership overlaps is associated with board size, financial leverage and profitability. The relationship between profits and interlocks is bidirectional, implying that interlocking directorates bear a positive effect on asset returns.

Originality/value

The authors map the relational structures in the social networks of companies and company leaders in the shipping industry and discover the cross-sectional determinants of interlocks in the shipping industry. The finding about the effect of interlocks on profitability and agency costs bears policy implications for the design of corporate governance in the shipping industry.

Details

Corporate Governance: The International Journal of Business in Society, vol. 19 no. 4
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 11 September 2017

Sean B. O’Hagan

The purpose of this study is to explore the impact that women who sit on boards of directors, as well as women that are part of an interlocking directorate, have on…

Abstract

Purpose

The purpose of this study is to explore the impact that women who sit on boards of directors, as well as women that are part of an interlocking directorate, have on corporate performance. The investigation is placed within the literature on human capital theory and resource dependency as an argument for gender diversity and boards of directors.

Design/methodology/approach

A director data set for over 32,000 firms based in the USA, composed of 6,218 women and 54,932 men, is utilized. From this, regression and network analysis were utilized.

Findings

It is found that female directors’ participation in interlocking directorates translates into greater corporate performance when compared to simply examining female representation on boards of directors. Additionally, women involved in interlocks translated into greater corporate performance when compared to men. These results support the resource dependency approach.

Practical/implications

Results of this study suggest that when considering female directors, corporate performance is enhanced when female directors already sit on the boards of other firms.

Originality/value

This study highlights external network connections to differentiate between human capital theory and resource dependency as an argument for gender diversity and boards of directors.

Details

International Journal of Gender and Entrepreneurship, vol. 9 no. 3
Type: Research Article
ISSN: 1756-6266

Keywords

Article
Publication date: 12 April 2019

Anderson Galvão, Carla Marques, Mário Franco and Carla Mascarenhas

Based on resource dependence theory and the concept of interlocking directorates, the purpose of this paper is to understand the importance of networks for start-ups and…

Abstract

Purpose

Based on resource dependence theory and the concept of interlocking directorates, the purpose of this paper is to understand the importance of networks for start-ups and the role incubators play in these companies’ networking processes.

Design/methodology/approach

The research was conducted through semi-structured interviews with the entrepreneurs responsible for three start-ups and the heads of their incubators. The interview data were subjected to content analysis using NVivo software.

Findings

The results indicate that start-ups often resort to networks to overcome their weak reputations and scarce resources. Incubators play a quite important role in this process since they promote events that encourage the creation of partnerships and networks either between start-ups within the same incubator or with external institutions. In addition, the results reveal that most cooperation networks are informal and that they fulfil needs that start-ups are not yet able to meet themselves, for example, when they compete for public tenders.

Practical implications

The present study explored this topic from two perspectives (i.e. start-ups and incubators). This approach facilitated the identification of the main features upon which start-ups depend, the entities to which these companies turn for help, the kind of communication in which they usually engage, the primary advantages of establishing cooperation networks and the main types of support given by incubators.

Originality/value

Most studies of cooperation networks are based on transaction cost economics, a resource-based perspective and/or institutional theory. In contrast, this study innovated by applying resource dependence theory and the concept of interlocking directorates, which provided an alternative explanation regarding cooperation networks’ importance to start-ups and incubators’ roles in these companies’ networking processes.

Details

Management Decision, vol. 57 no. 10
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 30 September 2014

Geert Braam and Lex Borghans

The purpose of this study is to explore whether interlock ties between the board of directors and the external auditors facilitate the cross-firm diffusion of voluntary…

1181

Abstract

Purpose

The purpose of this study is to explore whether interlock ties between the board of directors and the external auditors facilitate the cross-firm diffusion of voluntary disclosures in annual reports.

Design/methodology/approach

Using a sample of 149 non-financial companies publicly listed on the New York Stock Exchange (NYSE) Euronext Amsterdam, we use ordinary least squares (OLS) regression analysis to examine the relationships between the incidence of financial and non-financial voluntary disclosures in the focal firms’ annual reports and the annual reports of other companies to which the firms are related via the interlock ties of its board members and external auditor.

Findings

The results show significant associations between financial and non-financial voluntary disclosures in the focal and related firms’ annual reports when there were board interlocks. Differences in the diffusion of specific types of disclosures are found depending on the type of interlocking director. The results also show that interlock ties of the external auditors positively influence the associations with voluntary financial disclosures in the annual reports.

Practical implications

We find clear indications that board and auditor interlocks form important sources of inter-organisational information exchange that can drive changes in voluntary disclosure practices in annual reports. The networks of social relationships between firms may play a significant incremental role in the cross-firm diffusion of corporate voluntary disclosure practices, particularly in complex and ambiguous situations.

Originality/value

This paper is the first empirical study to investigate how board and external auditor interlock ties are related to the levels of financial and non-financial voluntary disclosures in the focal and related firms’ annual reports.

Article
Publication date: 29 June 2021

Yasaman Sarabi, Matthew Smith, Heather McGregor and Dimitris Christopoulos

Corporate success depends partially on the quality of knowledge accessible to the executive board. One route of access to such knowledge is the appointment of directors…

Abstract

Purpose

Corporate success depends partially on the quality of knowledge accessible to the executive board. One route of access to such knowledge is the appointment of directors who already hold directorships with prominent other corporate actors. Such director appointments provide interlocks to a corporate knowledge ecosystem (Haunschild and Beckman, 1998). The purpose of this paper is to examine how linkages between companies belonging to different sectors impact firm performance and to examine how linkages created by female directors, as opposed to male directors, shape performance.

Design/methodology/approach

This paper investigates the interlocks created between UK FTSE 350 companies from 2010 to 2018. It draws on network analysis to map the roles that male and female directors play in linking firms with varying sector classifications. The paper provides an examination of the impact of these roles on firm performance, through a panel data regression analysis.

Findings

This paper finds that there is an increase of inter-industry brokers over the period, and that men are still dominant in both the network and creating inter-industry ties amongst companies. However, the role of women in establishing these ties appears to be changing, and women are more important when it comes to create inter-industry ties among key economic sectors.

Originality/value

This paper provides a novel approach to examine the interplay between gendered inter (and intra) sectoral linkages and firm performance. It provides an original application of the two-mode brokerage analysis framework proposed in Jasny and Lubell (2015).

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

Keywords

Content available
Article
Publication date: 30 October 2019

Rosa Caiazza

Abstract

Details

Management Decision, vol. 57 no. 10
Type: Research Article
ISSN: 0025-1747

1 – 10 of 496