Coordination, control, or charade? The role of board interlocks among business group members
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › Not applicable › peer-review
Related Research Unit(s)
|Journal / Publication||Management Decision|
|Publication status||Accepted/In press/Filed - 3 Sep 2018|
|Link to Scopus||https://www.scopus.com/record/display.uri?eid=2-s2.0-85054591716&origin=recordpage|
Design/methodology/approach - This study leverages proprietary information on firm-to-firm transaction ties among all 155 affiliates belonging to a large Italian business group. The authors use network analysis to develop multiple measures of the centrality of each group member, and link these to resource transactions, ownership patterns and geographic distributions. The authors test the hypotheses in a structural equation model using LISREL.
Findings - The results demonstrate that both resource exchanges and the presence of cross-national relations increase an affiliate’s central position in the group’s network of board ties. In contrast, ownership ties between members were unrelated to affiliate centrality.
Originality/value - Internal governance mechanisms of business groups are rarely studied. While groups are often portrayed as inefficient or value-destroying, the analysis of proprietary firm data suggests a very different scenario: inter-unit ties are much more supportive of a model of business groups as strategic portfolios, using internal ties to share information and resources.
- Network analysis, Boards of directors, Interlocking directorates, Ownership, Business groups
Coordination, control, or charade? The role of board interlocks among business group members. / Zona, Fabio; Boyd, Brian Keane; Takacs Haynes, Katalin.In: Management Decision, 03.09.2018.